Before you retire, it would be well worth the time to ask yourself specific questions. These questions are specific to the age at which you plan to retire.
If you can answer “yes” to most of the questions, then go for it! If not, you may need to reconsider your plan to retire.
Retiring at age 55?
Retiring at age 55 might seem too young. You can work for another 10 years. You cannot collect Social Security until age 62.
If you will retire at age 55, your money needs to last longer than if you retired later.
- Will you work part-time or retire completely?
- What sources of income will you depend upon?
- Do you have enough in savings to last?
- How will you cover healthcare costs?
- What will you do once you retire?
Retiring at age 60?
Today, the average age for retirement is 62, but there are those who retire earlier for numerous reasons (health). Others are tired of working in the traditional workplace and ready to start their next chapter.
If you retire at age 62 there are still gaps that need to be filled:
- Do you have a firm grasp of your expenses?
- How will you fund retirement before Social Security starts?
- How will you pay for healthcare?
- What will you do with your free time?
Retiring at age 62?
This is the average age of retirement in America. These folks are thinking about the freedom that they will have. Social Security benefits will be reduced for your life should you start to claim at this age.
Before you make the decision, consider your financial health, physical well-being and emotional preparedness.
- What will your financial picture look like?
- What will your money/savings be doing?
- What about housing costs?
- How will you bridge the gap before Medicare begins?
Retiring at age 65?
More than 4 million Americans will turn 65 in 2025. 4.1 million Americans will turn 65 in 2026 and 4.1 million more Americans will turn 65 in 2027.
Age 65 is NOT the Social Security full retirement age for many people, it is when Medicare begins.
- Do you have a cash flow strategy in place?
- When will you claim Social Security?
- What will be the tax implications of your retirement income?
- Can you visualize your retirement?
- Can you put off retirement until you reach full retirement age for Social Security?
Retiring at age 67?
Age 67 is the full retirement age for many Americans as far as Social Security is concerned and might feel psychologically ready to do so. Medicare will have kicked in and you should have saved for this event.
However, should you retire? What if you change your mind? Can you return to your former job?
- Can you afford to stop working?
- Are you ready to stop working?
- Can your retirement assets handle market declines?
- Would your quality of life improve with higher Social Security benefits?
- What are you retiring to?
Retiring at age 70?
At this age, you have maxed out your Social Security benefit and are probably at your peak earnings potential.
Yet for some people, retiring at age 70 is still an “if” rather than a “when”. They keep pushing back the time to retire.
- Are you financially capable of retiring?
- Do you have to leave your job?
- What is your plan for your retirement free time?
- Is there longevity in your family?
- Is fear preventing you from retiring?
Age is simply a number, what matters is your preparation for retirement.
The questions above are a guideline but they are critical to assessing your ability to retire at the various ages mentioned. Will you have enough money to retire? Will your healthcare be covered? How will you spend your time? Answering these questions will help prepare you for retirement when the time arrives.
At Retirement Solutions, we have been helping clients prepare for retirement for over 40 years. We know what questions to ask and we have the tools to help you on your way to retirement.
We offer a no-obligation, no-cost consultation to help you determine if you are ready for retirement and whether we can assist you. Click the “Schedule a Consultation” link in the upper right hand corner of the website Home page.