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What age is the best age to retire?
No one can answer that question for you. But with careful planning and thoughtful preparation, that choice will be easier for you to make when the time comes.
Here are some things to keep in mind when making your decision:
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No matter what age you retire, it’s important to start saving more now.
Starting to save for retirement early in your career is an action you likely won’t regret. Not starting early can complicate your ability to build an adequate amount of retirement income. Even starting at age 35 means you can have more than 30 years to save. You can also still benefit from the compounding effects of investing in tax-sheltered retirement vehicles such as the State of Michigan 401(k) and 457 Plans. It’s never too late to start saving, no matter what age you decide to retire.
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Did you know that every type of retirement benefit has a different eligibility age?
As you’re planning for your retirement, consider these important ages when developing your personal retirement plan:
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Age 50 – You can take advantage of catch-up contributions to your 401(k), 457, IRA, and 403(b). We’ll share more about catch-up opportunities next month.
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Age 62 – You are eligible to begin reduced Social Security payments. Learn more about Social Security here.
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Age 65 – Your Medicare eligibility begins.
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Age 66 – Full Social Security retirement age begins for most Baby Boomers.
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Age 67 – Full retirement age for Social Security benefits if born in 1960 or later.
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Age 70 – To increase monthly benefits delay claiming Social Security payments until 70.
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Age 72 – Minimum distributions from 401(k) plans and IRAs are required.
Make sure you thoroughly understand the rules regarding the age for receiving these benefits to avoid any penalties. This will help you decide on when to quit working.
Members of the ORS Defined Benefit plan should login to miAccount and do a pension estimate to see what date you can plan for.
If you participate in the State of Michigan 401(k) or 457 Plans, log in to your Voya Financial account to set up a retirement scenario there.
ORS and Voya want to help you along your journey to a successful retirement, no matter what age you decide to stop working. Being engaged in your retirement planning is an important first step.
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Throughout the month of November, we have been sharing information about Women & Retirement on our social media pages. If you missed it, here’s a recap:
- Based on your age, how many multiples of your annual income should you have saved? Speak with a financial planner and consider your retirement goals. Account Login (voya.com)
- Have you decided what age you’ll retire? Use this helpful budgeting tool from Voya.
- Are you mentally ready to retire? Learn about being retirement ready here: Retirement Top Risks
- Determining your retirement age is one of the most important steps in preparing for retirement. Everyone’s decision is different. Deciding when to retire
Remember, retirement is a journey and we are here to help you along yours. Follow us on Facebook and Twitter and share this email with others in your life that you think would benefit from these messages.
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