For a long time, age 65 has been considered the ideal retirement age. According to a Gallup survey, the average age at which non-retired Americans anticipate entering retirement is widening. A full 25% of respondents questioned intend to retire at age 65, while 39% believe they will retire beyond the so-called magic retirement age.
Not Enough Savings
It’s a common misconception that if you put money away in an IRA or 401(k), you’ll be able to retire comfortably. Despite our best efforts, certain things just can’t be avoided. You may believe you’ve contributed enough to your 401(k) to obtain the business match, but that’s not always the case.
No Savings
About one-third of Americans have no retirement savings, and more than half have less than $10,000 in the bank.
Start Immediately
If you find a place in your budget to save a few dollars each week or month, do so. Don’t forget to keep whatever money you get as a raise or bonus. As time goes on, you’ll be able to build your nest egg.
65 – Not the Full Retirement Age
We’re living longer, which means we can receive Social Security benefits for longer. Anyone born after 1937 must wait until age 65 to get their total retirement income from the Social Security Administration.
You Don’t Want Your Money to Slip Away
At age 62, you may begin receiving Social Security benefits, but the monthly benefit amount will be reduced. You’ll earn your entire pension if you wait until retirement age. If you start at age 70, you may expect an additional 8% yearly, depending on your birth year.
You Have No Idea How Much You’ll Use
Knowing precisely how much money you’ll need in retirement is impossible since no one has a crystal ball. Despite this, it is still a good idea to estimate. Knowing how much money you’ll need to retire will be much easier if you speak with a professional financial counselor.
Didn’t Save Early Enough
Retirement feels like a long time away when you start your first career. Contributing to your retirement plan might be put off for various reasons. All these things require money, so most people don’t have much left over after getting married, buying a home, and having a few kids. There are several advantages to starting early. Once you get into the habit of saving, you will no longer consider it a chore. Compound interest also works in your favor, increasing the value of your investments over time.
Social Security Benefits – Cashed Early
Security retirement benefits could be taken when you are age 65, which many individuals do, even though you’ll earn 30% less at the time of your full retirement age if you claim at the age of 62 if you were born after 1959.
Delaying until you’re 70 years old is preferable. In addition to any cost-of-living adjustments, you’ll get the same amount as when you initially filed your claim. Overall, claiming early will result in a lower monthly benefit for the rest of your life.
401(k) Cashed
Suppose you withdraw money from an IRA, 401(k), or another qualifying retirement plan before age 59 1/2. In that case, your retirement savings will be significantly reduced. Taxes and a 10% penalty are almost certainly due to the money you receive unless you utilize it for certain qualified costs.
Additionally, you’ll have to pay more taxes and penalties, making it even more challenging to accomplish your objectives. Don’t touch your retirement funds until you’ve reached retirement age.
No One to Spend Time With
If your spouse dies before you retire, postponing your retirement may seem more enticing for various reasons. It is difficult and coming to work every day may be just what you need.
The two Social Security payments that would have been yours had you been married when you first started receiving them will be reduced to just one. There will be only one gain for you, even if it is the greater of the two: yours or your spouse’s.
Men and women now have an average life expectancy of 84.3 years and 86.6 years, respectively, when they reach the age of 65. Many individuals will miss the stimulus and socializing of working after they retire. (this ending feels incomplete)
Contact Information:
Email: [email protected]
Phone: 2129517376
Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].
