When To Retire – U.S. Government Tips

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When To Retire – U.S. Government Tips

When to retire has become an even more confusing issue

Retirement questions abound. We know it's a good idea to do retirement investing, get good insurance, and plan on saving for retirement. Yet it's still confusing to know the when part

The U.S. government had developed guidelines and a specific timeline to help us choose the right options in our particular circumstances. As the Department of Labor so accurately states:

“It's not going to be your parents' retirement - rewarded at 65 with a gold watch, a guaranteed pension, and health insurance for life. For many Americans, retiring in this new century is a mystery. Earlier generations of workers could rely on employer provided pensions, but now many workers will need to rely on their own work-related and personal savings plus Social Security benefits. These savings have to last longer because Americans are living longer, often into their eighties and nineties.” The timeline the Department of Labor provides helps us sequence important retirement milestones, to assist in taking the mystery out of when to retire. According the Employee Research Benefits Institute, only about 47% of Americans have even used a retirement calculator to assess what they will need and where they are at. That’s like going on a trip without direction or a road map. Sure, you can go ahead without it. And you will certainly arrive… somewhere.

If you are age 50 or over, you may know that you are eligible for “catch-up” retirement contributions. Depending on your ability to utilize this, when to retire can drastically change. If you have not used a retirement calculator, we are providing a link to an easy one through the U.S. Department of Labor. Even if you have used one, it is always a good idea to cross-check your planning strategy.

In the various ups and downs of the economy, baby boomers and seniors are re-thinking when to retire (and if they even want to). Here is the basic timeline provided in the Department of Labor’s interesting brochure called “Taking the Mystery Out of Retirement.” We are including a link to the entire booklet, at the bottom of this page.

At age 50 – Begin making catch-up contributions, an extra amount that those over 50 can add, to 401(k) and otherretirement accounts.
At 59½ – No more tax penalties on withdrawals from retirement accounts, but leaving money in means more time for itto grow.
At 62 – The minimum age to receive Social Security benefits, but delaying means a bigger monthly benefit.
At 65 – Eligible for Medicare.
At 66 – Eligible for full Social Security benefits if born between 1943 and 1954.
At 70½ – Start taking minimum withdrawals from most retirement accounts by this age; otherwise, you may be chargedheavy tax penalties in the future.

If you’re interested in some good (and free) retirement advice, the booklet offers very eye-opening calculations on how just putting aside a little bit here and there over, say, 10 years can make an enormous difference on when to retire. And avoid many financial elderly issues later. Plus what specifically happens when we save certain amounts every month, over 10 years. Although this report is based on earlier data, it is still nevertheless very valuable for getting a good idea of possible paths on when to retire, and outcomes we can then expect. There are many other links included to other important resources and retirement ideas as well, including to an excellent retirement calculator. Just click on this link to “Taking the Mystery Out of Retirement Planning.”

Also make sure you read:

Should I Retire -- “Should I retire” is a question that always remains. In recent years, it's become a matter of personal preference; of what you really want to do with the rest of your life. So should you really retire? Or maybe re-fire instead? And how and when did the concept of retirement even start? Check these important personal considerations.
Senior Retirement Living -- Senior retirement living may mean new housing options. Do you know the details to make the choice for you or your loved one?
Retirement Financial Planning - From Here To There -- Done your retirement financial planning? It doesn't have to be overwhelming. Learn the basics and see our tips to get from Here...to There.
Saving For Retirement - Even If You Think You Can't -- Saving for retirement - yeah, sure. Good intentions. But are you really doing it. And how?
Finding A Financial Planner - And Getting A Good One -- Finding a financial planner takes a lot of careful preparation. If you want someone really good. You need to know specific questions to ask yourself – and to ask the potential financial planner. Do you know them?

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