Transition to Retirement
Roughly 51 percent of Americans retire between the ages of 61 and 65, with another 13 percent sneaking out between ages 55 and 60, and 22 percent leaving between ages 66 and 74
Many believe that because you work, and work hard… retirement will promise a life of ease, and it could and in fact, should! Here are some questions we believe that you should be thinking about, and prepare to answer.
- Do you have an estimate of your retirement income?
- Do you have a plan for retirement including Medicare and Social Security?
- Do you know how taxes will affect your retirement income?
- Do you really need to hire a financial advisor?
Things to Consider While Transitioning to Retirement
- Health care – not until 65
- Social Security at age 62 with a permanent reduction
- Outliving your retirement savings – A shocking 21 percent of Americans have nothing at all saved for the future, and another 10 percent have less than $5,000
(Source: Northwestern Mutual’s 2018 Planning & Progress Study)
Retire on time
- Assuming age 67, to get full Social Security benefits
- Access to Medicare
- Take up a hobby, travel, volunteer… expenses considerably drop when you are no longer paying FICA/FUTA, into your retirement plan, your working tax rate.
- Retire at age 70 and you’ll see up to a 32% increase in your social security – the highest benefit
- Less risk of running out of money
- Although most financial planners say to wait until the age of 70, only 2 percent of men and 4 percent of women wait until 70
(Source: Center for Retirement Research, Boston College)