You’ve heard it said that age is just a number, but there are a few big birthdays you should be aware of when thinking about retirement. To keep you up to date, here are some birthdays you should mark on your calendar for your retirement income plan.
Age 62 is important to your retirement because it is the earliest you can claim and begin receiving your Social Security income. Retiring at 62 might sound great, but you may want to think twice. While you can receive your Social Security income, it comes at a reduced amount.
However, Social Security shouldn’t be your sole source of retirement income. If your other sources of retirement income meet your needs to offset the difference, age 62 could be a good time for you to retire!
For many, this is what we refer to as full retirement age. You have access to your Social Security benefit without any reduction. If you can hold off on receiving your Social Security, this may be a great option for you. By delaying your Social Security income, you can be sure you’re receiving your full benefit allotted to you. There is some variance on the exact age you must depending on what year you were born, so be sure to do your research while considering your retirement options (ex: if you were born in 1957, you must be age 66 and six months to receive your Social Security income). Here is a great place to start https://www.ssa.gov/benefits/retirement/planner/agereduction.html.
If you’d like to continue working and building your portfolio for as long as possible without receiving your benefits, age 72 is the number you should be aware of the most. This is the age at which required minimum distributions kick in for qualified accounts. For each individual with a qualified account, there is a minimum amount you must withdraw every month. Failing to do so will result in penalties.
Of course, your Social Security income was never intended to be your only source of retirement income. There are several ways to build out a retirement income plan that can help you work toward an early retirement.
If you’d like to learn more about creating a retirement income, Social Security, and more, consider attending an American Retirement Institute course in your area!
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