I’m ‘medically retired’ at 54 and considering moving to a lower-cost state. What else can I do to financially adapt now that my retirement timeline has shifted?

You’re not alone.

Indeed, almost six in 10 retirees retired sooner than planned (58%), according to a study by the Transamerica Center for Retirement Studies. In almost half (46%) of these cases, the reason was personal health-related. At the same time, only one in five (21%) retired early because they were financially able.

We’ll consider your options as you look to financially adapt.

Insurance and government programs could help

Most people plan to retire gradually — ideally by choice, in their mid-60s, with solid savings. Medical retirement disrupts that timeline completely, often cutting a decade or more off your working life. That loss of earning years reshapes your entire financial plan.

But you may have some options. Two potential sources of income for those unable to work due to medical conditions are critical illness insurance (CII) and long-term disability insurance (LTD), which you may have through your past employer, private insurance or both.

CII provides a one-time payout if you’re diagnosed with a ‘covered’ illness, as specified in the policy — which typically includes heart attack, stroke and cancer.

LTD insurance pays a portion of your income — typically between 60% and 80% of your monthly salary — if you’re unable to work due to illness or injury. There’s a waiting period of 90 days to a year before your coverage will begin, during which time it’s expected that you’ll be covered by short-term disability insurance.

Once your coverage begins, it may extend until what would be your normal retirement date. LTD might provide coverage for your condition.

There are also a number of government programs for adults with disabilities, such as Social Security Disability Insurance (SSDI). To qualify for SSDI, you’re required to have worked in a job covered by Social Security and to meet Social Security’s definition of disability, which is strict — so it can be hard to qualify.

If you’re still receiving SSDI benefits when you reach your full retirement age, you’ll then switch to receiving your Social Security retirement benefit — but your benefit amount will remain the same.

When you are older than 65, and if you have little income and resources, you could also qualify for Supplemental Security Income (SSI).

If you’re disabled, you could also qualify for Medicare even if you’re under 65 — say, if you’ve received SSDI for 24 months or have certain medical conditions. If you receive SSI, typically you’re automatically eligible for Medicaid.

The military has a pathway for medical retirement if you’re deemed unfit to continue your service due to a physical or mental condition. A Medical Evaluation Board and Physical Evaluation Board will determine if you qualify.