When Should You Retire?

Filed in archive Retirement on April 4, 2010

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Planning the year of your retirement should be considered carefully. With people living longer than before, you are most likely going to need any retirement money you have saved to have to last longer. For many people, this means a later retirement than what your parents enjoyed.

Just so that you can know how much money you can expect to get from Social Security, the government sends out a form called the Social Security Statement. This form should give you a rather good idea about how much income you will receive each month.

It is a good idea to calculate how much you would like to have above this figure each month when you consider retirement planning. You should also be aware that you will not receive 100% retirement benefits when you reach 65. There is actually a graded system in place which means that many will have to wait until they are 66 or 67 before they can receive full benefits.

While you can start to receive benefits once you reach 62, your benefits will be decreased so much by each month that you retire prior to your full retirement age. Altogether, you will receive about the same amount in benefits either way, but there is a larger payment given if you wait until you reach full retirement age.