What Age Is Early Retirement
What Age Is Early Retirement? 55 or Younger
Retiring early, at age 55 or younger, is most common for people who began military or civil service (such as firemen and policemen) at an early age. These workers can thus retire with a full pension and health benefits even though they are not yet 65. As a matter of fact, a special provision in the IRS rules on retirement plans allows certain civil service employees to access retirement funds penalty-free as early as age 50. If you don’t have access to those kinds of benefits, being financially ready to retire at 55 takes a lot more savings and planning.
Early Retirement Comes with Challenges
The primary challenge in taking early retirement is making sure you have enough assets to provide an acceptable level of income for your future. Someone who retires at 55 may need their savings to last 35 to 45 years in retirement. If you work until you reach age 70, your savings will need to provide for a shorter time frame. You can use various retirement income calculators to help you create a projection, or you can use the services of a qualified financial advisor, which is ideally a person who specializes in retirement income planning. The Balance
Social security has the following to say on early retirement
You can retire at any time between age 62 and full retirement age. However, if you start benefits early, your benefits are reduced a fraction of a per cent for each month before your full retirement age.
There are advantages and disadvantages to taking your benefit before your full retirement age. The advantage is that you collect benefits for a longer period of time. The disadvantage is your benefit is reduced. Each person’s situation is different. It is important to remember:
If you delay your benefits until after full retirement age, you may be eligible for delayed retirement credits that would increase your monthly benefit;
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