If you’re wondering when you can retire, know that the average retirement age is between 65 and 67 years old. While retiring early allows you to enjoy your golden years a little more, you may need to make sure you have enough saved for your retirement period.
Here’s what you need to know when considering when to retire.
Take a minute and consider what bills and expenses you have today. While those may change when you decide to stop working, knowing what your financial situation will look like is the first step to knowing when to retire.
Many experts advise people to project spending 70–85% of their working income during retirement.
Also keep in mind that you’re likely to spend less in a lot of areas once you retire, such as:
Cutting costs in these areas will help, but you never know what the future will hold. If you’re paying college tuition for children or incur large medical bills, you may need to plan for more.
While the full social security retirement age is between ages 65 and 67 (depending on your birth year), many people find it attractive to retire sooner. The earliest someone can begin receiving social security benefits is at age 62.
At that age, you can receive 70% of the monthly benefit, and 86.7% of the monthly benefit at age 67.
Downfalls to retiring early include having less time to build savings and more time to spend it. According to experts, if you have a pension, you may leave money on the table by retiring and taking the pension benefits early.
If you delay retirement, you can enjoy full social security benefits and continue making contributions to your retirement plans.
Many people today are retiring in phases, and accepting retirement benefits while they work part time. Ask your employer if this option is available to you when discussing your retirement timeline.
It’s a good idea to use a retirement calculator that allows you to enter your salary and savings figures and generate an estimate of what you’ll need to save for retirement.
Change your question from When can I retire? to How can I retire? Synchrony Bank has the financial tools to help you out. We offer both Roth and Traditional IRAs* , and we also provide high yield savings accounts.
Our financial products feature the security of being FDIC-insured up to $250,000, per depositor for each ownership category.
Call us at 844-345-5789 for the tools you need to build your retirement savings today.
CBS Moneywatch: www.cbsnews.com/news/how-much-retirement-income-do-you-really-need/
Social Security Administration: www.ssa.gov/planners/retire/1960.html
CNN Money: http://money.cnn.com/calculator/retirement/retirement-need/
*Synchrony Bank does not provide tax advice so be sure to contact your tax advisor or financial consultant before opening or contributing to an IRA.
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of .
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.