Forced Into Retirement at Age 60? Here's Your Game Plan.

It's not an unusual thing to be forced to retire sooner than planned. But it can also be a very jarring thing.

If you're forced into retirement at age 60, you may be in a better situation than if the same happened at, say, age 55. But it's a situation you still have to deal with and adjust to. Here's how.

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1. Assess your options before raiding your savings

At age 60, you can take withdrawals from a retirement account like an IRA or 401(k) without incurring an early withdrawal penalty. But that doesn't mean doing so is a smart idea.

You want your savings to last throughout retirement. And your goal may be to use them in conjunction with your Social Security checks, thereby minimizing the amount you have to withdraw from your IRA or 401(k) on a monthly basis.

Before you begin tapping your savings, see what other options you have. If you were forced into early retirement because you were laid off, you may have severance coming your way, not to mention unemployment benefits. If anything, those payments, combined with some freelance or part-time work, may allow you to put off raiding your savings a bit longer.

2. Figure out what you'll do for healthcare

The problem with having to retire at 60 is that you're too young for Medicare at that point. But you also can't afford to go without health insurance.

You may have a few different options you can look at if you need coverage. Assuming you can't join a spouse's plan, your best bet may be a health insurance policy you purchase through the Affordable Care Act Health Insurance Marketplace. You can choose from different plan tiers based on your budget and health-related needs.

You may be tempted to sign up for COBRA to retain your employer coverage. But since you'll have to pay your premiums without an employer subsidy, it could prove quite expensive. Plus, COBRA generally only lasts 18 months, so it won't be a long enough bridge until Medicare becomes available to you.

3. Take care of your mental health

A forced retirement can take a toll on you mentally. As you figure out your next steps, be kind to yourself and try to stay positive.

You definitely need to be proactive about figuring out the financial and insurance end of things. But also, carve out some time for self-care, and reach out to people you trust who can support you through this sudden transition.

It's not an easy thing to find yourself out of work for good sooner than planned. Do your best to adjust to your new reality so you're able to make the best of the situation.

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