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Ah, retirement. That blessed moment in a person’s life when they’ve put in their time with the workforce and can finally withdraw to focus on the things they enjoy and love. That time when they can enjoy the later years of their life playing golf or writing their great novel.
That’s the idyllic scene that many would like to enjoy. However, the reality isn’t as pretty. Many Millennials and Gen-Zers feel confident that they will never save enough to retire, and will work until the day they keel over. The average retirement age will most likely rise with them.
But what is the average age of retirement? How can you determine when to retire? Our guide will show you what you need to know.
Retiring Early: 62 and Younger
For many, the thought of working past their sixties is anathema. If you’re smart about investing (or manage to get supremely lucky), you may have enough funds to retire before hitting the big 6-0.
However, you must ensure that the funds you have access to will last for two years before you can begin collecting your actual social security/retirement benefits at age 62. If your money runs out before then, you won’t have many options.
Plus, if you take your retirement at 62, you will receive fewer benefits than you would if you had waited until 65 or older. This can damage your quality of life as you get older.
Average Retirement Age: 65-68
Most folks aim to retire between the ages of 65 and 68. It’s rare to see people work past the age of 70 unless their job doesn’t offer useful benefits or retirement planning.
Why so late? Why wouldn’t people retire as soon as possible? Well, if you wait until the age where you can receive your full social security benefit (anywhere from 65 to 68, depending on where you live), then you can ensure that you get the maximum monthly payout on your now-fixed income.
Plus, if you wait until age 65, you can handle applying for Medicare alongside your retirement benefits in one fell swoop. That’s less paperwork that you have to track.
What Retirement Plans Can You Find?
There are many retirement plans out there. Certain long-term employers offer 401K accounts which tie potential retirement funds to the stock market. You can also invest on your own, or look into annuities or life insurance policies that offer payouts during retirement.
You’ll need to speak with a financial planner to nail down the plan that best suits your retirement costs. So, reach out to someone like the professionals at ajhealthandwealth.com and see what they can do for you.
Let’s Review What We’ve Learned About Retirement
Choosing your retirement age depends greatly on your financial situation. The average age of retirement ranges from 62 to 68, with some outliers retiring sooner or later.
Regardless of the average age, you should start saving for your retirement as soon as possible to avoid having to work again as an elderly person. If you’d like to learn some tips that can help you save for retirement, check out the Finance section of our blog today!
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