Wednesday, August 08, 2018

70? 62? 50? Strategies for Retiring at Every Age




Originally published in Rebootology



Adapted from article by DANA ANSPACH : https://www.thebalance.com/when-to-retire-a-guide-to-retirement-from-ages-50-70-2389050

Retirement is a big decision. It is one of the biggest life transitions you'll encounter. Research shows the happiest retirees start planning at least five years before their desired retirement date. 

Have a look at what it takes to retire by 40, 50, 55, 62, 65 or 70.

Retiring at 50

Those who retire by 50 do one of a few things; they live on very little and save a lot, they inherit money, or they grow and sell a profitable business (or develop some other form of intellectual property).

If you are willing to live on less and don't have a lot of savings, consider a low-cost retirement lifestyle, such as residing in an RV in a campground, retiring in a low-cost overseas community, or living in a small apartment located in a place where owning your own vehicle isn't necessary. If these lifestyles sound reasonable to you, an early retirement may work for you.

If you've always been a career-oriented person, an "A type" or an over-achiever, and you have the funds to sustain an early retirement, there are other non-financial reasons for you to think twice before retiring. You may find retirement enjoyable for a few months, but without a new project to work on, too much leisure time may get old for you. Business owners and working professionals are those most likely to get bored in retirement. 

Retiring at 55

If you have sufficient savings, retiring at age 55 may be more feasible than you think. Taking money out of retirement accounts early while delaying when you get the age pension just might be what the doctor ordered.

Retiring at 62
Apparently, 62 is the average retirement age.

Think you've got a good plan? If you've consolidated accounts, understand your Social Security claiming options, know which accounts you will withdraw from and have estimated the taxes you'll pay in retirement, then you're doing things right.

Retiring at 65

Sixty-five is a realistic retirement age for most. With Medicare benefits, Social Security and there are no penalty taxes for retirement account withdrawals.

But beware, for upcoming retirees full retirement age for your Social Security benefits is NOT 65 - it is age 66 or later. For most of you this means even if you retire at 65, you'll be best off waiting a year or so before beginning your Social Security benefits.

If you're still working at 70 you may be the type who never wants to retire. There is nothing wrong with that!


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