By Kenneth Corbin

Many Americans dream of an early retirement, but for some, it's an unhappy circumstance forced on them. A new survey from Allianz Life found that 42% of Americans retire earlier than they anticipated, and the reasons are usually beyond their control.

When a worker is forced to retire earlier than expected -- say, due to unforeseen health considerations -- that can upend their retirement plan.

"When retirement comes early, it can quickly turn a solid plan into a fragile one," says Kelly LaVigne, vice president of consumer insights at Allianz Life. "That's because fewer working years and more retirement years can put significant pressure on savings -- especially when early retirement isn't a choice."

A separate report from Fidelity Investments out this week finds broadly positive savings behavior, but also declining account balances from the fourth quarter of 2025 to the first period of 2026. Fidelity attributes those dips to market volatility, which can result in savers pulling cash out of their 401(k) or 403(b) accounts.

"It can be tempting to make changes to retirement savings during market volatility," says Sharon Brovelli, Fidelity's president of workplace investing. But she says it's better for participants to "stay the course." That approach, "will strengthen their outcomes as retirement nears."

The Allianz report highlights the unexpected risks -- that can prompt an early retirement. The survey found that 30% of early retirees said they exited the workforce due to health issues. Just over 20% said they retired early because they had lost their job. Only 21% said they retired because they were financially ready.

Early retirement is a widely shared goal. Allianz found that 70% of respondents said they wanted to copy the financial strategies used by successful early retirees, and 54% said they would retire immediately if they won the lottery.

Overall, Fidelity reports that savings rates reached a record high in the first quarter. Participants in 401(k) and 403(b) plans on average put aside 9.6% of their income for retirement savings, the highest mark the firm has reported in its quarterly analyses. Paired with a 4.8% employer contribution, that brings the aggregate savings rate close to Fidelity's target of 15%.

Taken together, the findings of both studies underscore the importance of saving early and consistently, and potentially reassessing the targets set out in a financial plan.

"These findings show that many retirement plans may have a blind spot, because people assume their job and health will stay stable right up to retirement," Allianz' LaVigne says. "It's important that your retirement strategy ensures your money lasts your lifetime -- even if retirement starts sooner than you planned."

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

May 29, 2026 16:40 ET (20:40 GMT)

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