Everyone dreams of comfortable retirement life, yet many fail to prepare for it. Preparing for a good retirement life starts with figuring out your optimal retirement age and using it as a foundation in setting your retirement savings goal.<\/p>\n\n\n\n
Anyone over the age of 65 is often automatically considered at their retirement age. While many people do retire at age 65, nearly just as many retire either earlier or later.<\/p>\n\n\n\n
Determining retirement age isn\u2019t always cut and dry. It depends on a variety of factors \u2014 particularly your financial stability and eligibility for retirement benefits. Knowing your optimal retirement age would help you ensure you are financially prepared when the time comes.<\/p>\n\n\n\n
You can technically retire any time you wish, as long as you have sufficient funds. This is why people retire at different ages, depending on their finances and circumstances.<\/p>\n\n\n\n
Here in the U.S., people commonly retire at 62 years old<\/a>.<\/p>\n\n\n\n According to a report from the U.S. Federal Reserve<\/a>, half of their survey respondents reported retiring even before reaching 62 years. Meanwhile, nearly a quarter of the surveyed retirees said they retired between the ages of 62 and 64.<\/p>\n\n\n\n Many Americans choose to retire around the age of 62 since this is the earliest age you can start claiming your Social Security benefits. However, take note that receiving your Social Security benefits starting at 62 counts as claiming early. This means you can get up to 30% reduced monthly benefits due to not waiting for the full retirement age.<\/p>\n\n\n\n Full retirement age or normal retirement age refers to the age range you can receive full Social Security benefits. Eligibility for Social Security and other retirement benefits is a huge factor in calculating optimal retirement age. Most people wait until they can receive their full benefits to add to their retirement funds.<\/p>\n\n\n\n For many years, the full retirement age was 65. This started to change starting in 1983<\/a> after Congress passed a law to account for improved lifespan and health among retiree-age citizens.<\/p>\n\n\n\n Anyone born before and up to 1960 can use the Social Security Administration\u2019s online retirement age calculator<\/a> to figure out their full retirement age. Meanwhile, anyone born after 1960 will reach their full retirement age at 67.<\/p>\n\n\n\n Aside from Social Security benefits, there are other retirement benefits that can influence you in determining your optimal retirement age. Here are three of them:<\/p>\n\n\n\n Financial and retirement experts largely recommend saving 10% to 15% of your monthly pre-taxed income. Others suggest setting savings milestones based on age and annual income, such as the following:<\/p>\n\n\n\n However, take note that there\u2019s no one-size-fits-all answer when it comes to retirement savings. The ideal retirement savings would vary from person to person based on a variety of factors. These include:<\/p>\n\n\n\n Take note that these factors are only those that you have a semblance of control over. You can manage your spending, savings, and health, but you can\u2019t control external factors like inflation.<\/p>\n\n\n\n This is why it\u2019s difficult to set your retirement savings goal in stone. It\u2019s crucial to revisit your retirement needs and funds periodically. Make sure to adjust them as necessary to reflect any changes in your lifestyle, the economy, and more.<\/p>\n\n\n\n Figuring out how much to save for a comfortable retirement is much more difficult than figuring out your optimal retirement age. As helpful as the internet may be, it\u2019s still best to learn from the experts when it comes to your money.<\/p>\n\n\n\n<\/a>What is Full Retirement Age?<\/h2>\n\n\n\n
<\/a>Other Benefits and Factors to Consider<\/h2>\n\n\n\n
<\/a>How Much Should You Save for Retirement?<\/h2>\n\n\n\n
<\/a>The Bottom Line<\/h2>\n\n\n\n