What's the Best Age to Start Thinking of Retirement?

The recommended time to begin thinking and planning how much money will be needed for retirement is in the mid-30s. By the mid-40s, retirement planning is simplified because of a greater understanding of financial resources and the ability to achieve those financial goals at the targeted age of retirement. At age 50, it is important to assess investment income, retirement benefits and plans for healthcare coverage in the retirement years. 

Planning for retirement involves numerous retirement decisions in addition to compiling a list of the available income sources needed for a comfortable retirement. These sources will include pension benefits, Social Security, retirement accounts and other savings. Retirement planning should also include an assessment of future retirement risks. Examples of these risks are outliving retirement assets and inflation. Analyze trade-offs and choices that should be made to ensure that the retirement plan will cover all future financial obligations after leaving the workplace. Large amounts of debt including mortgage payments will limit the ability to save money for the retirement years. 

Healthcare coverage through employer-sponsored retiree health insurance, spousal insurance, COBRA, Medicare and Medicaid are important considerations when planning for retirement. Early retirement may be an option if poor health interferes with continued employment. However, concern about future health problems should not be a determining factor in a decision to choose early retirement. 

Not all employer-sponsored pension plans have the same features, distribution options and method of contribution payments. It is important for future retirees to acquire as much information as possible about each employer-sponsored benefit plan. Employers may also be willing to consider adding in early retirement incentives such as retiree health insurance or a bigger severance package. Phased retirement would be an asset when it comes to deciding at what age to retire. Phased retirement would add income from part-time or seasonal work to the income earned from a pension or Social Security. 

There is a lifestyle choice to consider when deciding when is the best time to retire. A lower standard of living would enable a person to retire earlier instead of continuing to work to amass more money to support a higher standard of retirement life. An individual might decide to retire at a younger age to care for a loved one in poor health or to raise grandchildren. Chronological age is not always a determining factor in deciding when is the best time to retire.

A person may want to postpone retirement and continue working to keep busy and derive a sense of self-worth and identity in the workplace. However, a person may desire to retire at an earlier age to pursue a life of leisure and fun if the individual is not happy with the daily work routine. A person’s ability to adapt to retirement changes in lifestyle is another determining factor in deciding at what age to begin to plan for retirement.

Researching the various Social Security claiming-age options should also be a part of planning for retirement. The monthly benefit amount a retiree will receive depends upon the age of a person when filing for Social Security benefits. Starting benefits before full retirement age will decrease the amount of the monthly benefit and increase the period to receive benefits. Starting benefits at full retirement age or later will increase the monetary amount of the monthly benefit and decrease the period to receive benefits. There are limits on the amount of Social Security benefits an individual can claim yearly between the ages of 62 and full retirement age while continuing to work and receive Social Security benefits.
About The Author 
Nisha Sharma represents a site called MHA.org.uk. She enjoy and has a few years’ experience writing about elderly health and dementia care. She enjoys reading and keeping up to date with the latest healthcare news and developments. In her spare time she enjoys . Feel free to visit her site for more information on specialist dementia care.

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