Suze Orman Warns: Most People's Retirement Won't Be Gradual — Here Are 3 Curveballs To Prepare For

If you're 55 or older, chances are you've started thinking more seriously about retirement — maybe even picturing how and when you'll finally step away from full-time work. Financial expert Suze Orman hopes that day comes on your terms. But as she recently pointed out, life doesn't always stick to the plan.

In a recent blog post, Orman highlighted three common assumptions about retirement that often don't hold up — and data from the Employee Benefit Research Institute backs her up. If retirement is on your radar, here are a few "curveballs" to prepare for.

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1. You May Not Work in Retirement — Even If You Want To

Many people imagine retirement as a mix of relaxation and part-time work to stay busy and bring in a little extra cash. In fact, EBRI's 2024 Retirement Confidence Survey shows that 75% of workers expect to earn money after they retire.

But in reality, only 30% of retirees actually do.

Orman says it's easy to overestimate how long you'll be able — or willing — to keep working. Health issues can show up unexpectedly, caregiving duties might fall in your lap, or you just might not be able to find the kind of work you expected.

What to do:

Try not to build your retirement plan around the idea that you'll still be earning income. Instead, Orman says to focus on saving more now, and make sure your retirement budget doesn't depend on a paycheck.

2. You Might Retire Sooner Than Planned

A lot of people target 65 as their retirement age — right around the time they expect to claim Social Security. But according to the EBRI survey, the average retirement age is actually 62.

Even more eye-opening: More than half of retirees say they left work earlier than expected, and many didn't have a choice. Some were laid off. Others left due to health problems or to care for a loved one.

What to do:

Ask yourself, "What if I had to stop working next year?" If that thought makes you nervous, consider ways to build some breathing room — whether that's paying off debt, increasing your emergency fund, or simply saving more if you're able to.

"If you're not sure about that, then now is when you still have some time to plan for the unexpected," Orman wrote.

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3. Retirement Might Happen All at Once

A lot of workers say they plan to ease into retirement — maybe by cutting back their hours or working part-time for a while. But that's not how it goes for most people.

In fact, nearly 75% of retirees say their transition wasn't gradual at all. One day they were working, the next day they weren't.

What to do:

Even if you hope for a soft landing, make sure you're prepared for a more sudden shift. That includes thinking through both the financial and emotional sides of retirement — how you'll spend your time, stay connected, and cover your expenses.

Planning for Life's Curveballs

Orman's advice is simple: Hope for the best, but plan for the unexpected. Retirement doesn't always follow the script, so it's smart to build a plan that can handle a few surprises.

"It is fantastic to make plans and to work toward those plans," Orman wrote. "But the best plans are stress-tested to make sure they have a high probability of success, no matter what curveballs come your way."

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