Retirement has many definitions. For most people it often means a string of Saturdays – for as long as you want!
These days many people are considering retirement at a time they may not have yet considered. Companies offering early retirements and pension buy-outs, or an extended furlough may have you thinking about the possibilities. When you can stop the rat race and get on with the Saturdays?
Many people peg their retirement date to their eligibility for social security benefits. Age 62 is the earliest to receive benefits, and the amount you receive can be reduced by as much as 30% from the amount you would receive at your full SS retirement age (between 66 and 67 for most people). And, if you wait until after full retirement age to receive benefits, you could receive an additional 8% annually until you reach age 70!
If you have money you have saved for retirement, you may be able to use those funds for income while you wait for your social security benefit to grow. Is that a good idea? It depends on how much you want to spend in the early years of retirement, your tax bracket, required minimum distributions from your IRA/401K, and how your investments might perform over the years. Remember, retirement success isn’t just a number you determine is needed for your first day of retirement. It’s based on your retirement income, investments, and expenses that may last for 30 years or more.
We’ve seen people spend their retirement funds in the first 2 years who are then unable to go back to work and forced to live on social security alone. We’ve seen people so afraid to spend their retirement savings that when they look back on life in their 90’s they cry at the times and adventures they missed with the ones they love. I don’t want this to happen to you! It’s time to plan your future realistically so you can be confident that the decisions you make today are the best ones for tomorrow.
Your string of Saturdays may come sooner than you think! Call us today and lets plan your Saturday's!
Laura Mickels has spent more than 30 years working for investors with both Wall Street and independent firms. At CochranMickels Retirement Specialists we provide personalized planning and investment services to individuals approaching and in retirement..These are the opinions of Laura Mickels and not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice.