The most common question that a person who is middle-aged asks is when they can retire. Aside from knowing when you can retire, it is also best to look into a retirement guide according to your age in order for you to know what steps you should take when you are reaching that stage in life.
What to Do at Age 55
Some people take early retirement at age 55. At this age, you should be considering retirement planning and think about strategies that will increase your retirement income.
You also need to take a look into your insurance needs and consider planning your retirement investments. You should think twice about retiring at this age because getting money from your retirement accounts such as your 401K may mean having to pay taxes on early withdrawals.
What to Do at Age 59½
Most people retire at this age because, as much as they would like to retire early, they need to be able to take their retirement withdrawals without paying any taxes. Most people don’t want to continue working anymore after this age.
If you plan to retire at this age, make sure that you have laid out your retirement plans as early as when you are 55, in order to retire smoothly and make the best of your retirement options. This may involve considering retirement investments as well as getting into business.
What to Do at Age 62
For those who have not retired at age 59½, 62 is the next age that you can retire. At age 62, you can now begin to receive your social security benefits and may receive a larger benefit at this age. However, if you want to receive an even larger benefit, you should plan to retire at age 70.
Before considering prolonging your access to your social security benefits, you may want to take a look at your life expectancy and medical history.
What to Do at Age 65
You can also retire at age 65, a time when you can enroll in Medicare. The amount of your monthly premiums is usually based on your tax returns for two years prior to your retirement.
What to Do at Age 70
When you reach the age of 70, you should consider immediate annuities and reverse mortgages. These strategies allow you to have an increase in your retirement income even without considering the stock market; thereby reducing any risk to your retirement money.
What to Do at Age 70½
At age 70½ you may start taking distributions from your IRA or 401K account.
What to Do at Age 75+
At this age, you should carefully consider estate planning and end of life decisions to help you and your family deal with possible health complications or in the event of death.
In my opinion, the best time to retire is at the age of 59½ since you are already eligible to withdraw your retirement savings without the need to pay taxes. Nevertheless, a lot still depends on personal circumstances, so you must analyze your own needs before considering retirement. So what are things that you need to consider before retiring?
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