What is the average retirement age?
When you retire is up to you, but the decision to retire is based on many factors. Your savings, cost of living and family situation are a few things that may influence the timing of your retirement. While the average retirement age is 63 in the United States1, we live in a world where people tend to work to an older age. Though working longer has become normal, many may have the desire to retire as early as possible. Regardless of the average age, what’s most important is that you set goals and work toward finding the best time for you to retire. The key to preparing for retirement is planning. Start planning at least 5 years in advance by asking yourself simple questions like,
- When do I want to retire?
- Do I have any specific goals for retirement?
- What do I dream of doing with my time during retirement? Example: Traveling the world or staying at home with family?
When you’ve set a target age for your retirement, the next step involves finding ways to work toward your goal. If you’re trying to retire early, there are steps you can take to find out the earliest time you can retire. To be on the right track toward retirement, you’ll need a plan. This plan should involve factors like saving your money, investing, managing your taxes, and figuring out your healthcare needs.
When it comes to your benefits and healthcare in retirement, the “full retirement age” is the age when you receive your full amount of social security benefits, including Medicare. Keep in mind that Medicare benefits begin at age 65. If you retire before you’re 65, you will have to pay for a private health plan until you are eligible for Medicare. Depending on your health care needs, you may need additional coverage along with Medicare once you turn 65. Health plans that provide extra coverage in addition to Original Medicare are often known as Medicare Supplement insurance plans or you may choose a Medicare Advantage plan instead of Original Medicare.
Retirement is a wonderful period of life that can allow you more time to enjoy the things you love. Whether you look forward to traveling, spending more time with family or enjoying your hobbies, proper planning can help you prepare to retire the way that you want. The average retirement age may be 63, but with planning, retirement can be at an age you choose!
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