What Is The Best Age To Retire for Longevity? (2024)

FAQs

What Is The Best Age To Retire for Longevity? ›

Working an extra year decreases mortality rates by 11%, a new analysis shows.

The normal retirement age is typically 65 or 66 for most people; this is when you can begin drawing your full Social Security retirement benefit. It could make sense to retire earlier or later, however, depending on your financial situation, needs and goals.

If you file as early as possible -- when you turn 62 -- your benefit check will be reduced by up to 30% compared to what you'd receive at your FRA. If you delay benefits until you're 70, you'll receive your full benefit amount plus a bonus of between 24% and 32% per month, depending on your FRA.

If you were to retire at 65 and live to age 90, your money would need to last 25 years. But if you're retiring at age 55 instead, your savings now needs to be able to stretch for 35 years. And that assumes you stay healthy and don't require long-term care at some point, which could significantly drain your assets.

December 31. As above, December 31 has the benefit of a full month of income with the pension starting the next day. This is a common date for federal employees, who are the kings and queens of gaming the retirement system. Retiring on December 31 is likely to maximize your unpaid annual leave check.

Some people are able to retire relatively early — even in their 40s sometimes — while others work well into their 70s and even 80s. What is the average age of retirement in the United States? Right now, the average age for men to retire is 65 while the average age for women to retire is 63.

Most established adults we interviewed seemed to recognize that they were happier in their 30s than they were in their 20s, and this impacted how they thought about some of the signs of physical aging that they were starting to encounter.

When it might make sense to take Social Security at 62. You need the money now. You have health issues that may shorten your life expectancy, or you don't expect to live past your break-even point. You're receiving early retirement from an employer and the benefits end at age 62.

There is no age at which you will no longer be taxed on Social Security payments. So, if those payments when combined with your other forms of income, exceed one of the two thresholds, then you will have to pay at least federal taxes on either 50% or 85% of the benefits you receive.

The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67. For anyone born 1960 or later, full retirement benefits are payable at age 67. The chart on the next page lists the full retirement age by year of birth.

What is the best month to retire in 2024? ›

December is often selected as a favored month for retirement due to several reasons: Year-End Financial Planning: Retiring at the end of the year allows you to maximize your retirement contributions and take full advantage of any employer-matched funds for that year.

The 4% rule for retirement budgeting suggests that a retiree withdraw 4% of the balance in their retirement account(s) in the first year after retiring, and then withdraw the same dollar amount, adjusted for inflation, every year thereafter.

Waiting Increases Benefits

This is usually age 66 or 67, and you can check to see when you are eligible for full Social Security benefits. For each year you delay claiming Social Security past your full retirement age, your benefits grow by 8%. After age 70, there are no further increases for delaying your benefit.

The 3% rule in retirement says you can withdraw 3% of your retirement savings a year and avoid running out of money. Historically, retirement planners recommended withdrawing 4% per year (the 4% rule). However, 3% is now considered a better target due to inflation, lower portfolio yields, and longer lifespans.

67-70 – During this age range, your Social Security benefit, if you haven't already taken it, will increase by 8% for each year you delay taking it until you turn 70. So, if your benefit will be, say, $2,500/month if you start at your full retirement age, it would be more than $3,300/month if you can wait.

'It's probably best to retire at the start of the tax year for most people,' says Sean McCann, chartered financial planner at NFU Mutual. 'On 6 April you start with a clean slate. '

By age 35, aim to save one to one-and-a-half times your current salary for retirement. By age 50, that goal is three-and-a-half to six times your salary. By age 60, your retirement savings goal may be six to 11-times your salary. Ranges increase with age to account for a wide variety of incomes and situations.

By Alex Graesser, CFP®, ChFC® Age may be just a number, but that number matters when it comes to retiring. The common definition of early retirement is any age before 65 — that's when you may qualify for Medicare benefits. Currently, men retire at an average age of 64, while for women the average retirement age is 62.