Historically, most Americans have considered 65 to be their target retirement age. This is likely the result of past Social Security laws which allowed for a full benefit beginning at age 65.
Workers today, however, are retiring at earlier ages than in years past. In just the last few years, for example, the average age for retiring has dropped to age 63. And many younger workers are planning on retiring even earlier.
What You Give Up
This trend towards retiring earlier is not without its costs. Here are a few of the financial results of early retirement which must be considered carefully:
Not only are Social Security benefits reduced for early retirement, but the "full benefit" age is being gradually increased to age 67.
Retiring early often eliminates ones greatest earning years and the resulting savings that would have taken place in these years.
The annual benefit provided by employer sponsored defined benefit pension plans is usually based on a combination of years of service and your ending salary. Both are reduced by early retirement.
Health care costs tend to increase for retired individuals. Benefits that were once paid for by employer sponsored coverage often become the responsibility of the retiree.
Consider Your Options Carefully
Choosing when to retire is one of the most important financial decisions you will make. Consider your options carefully. Careful planning can help ensure you a happy and financially independent retirement.
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Evangeline could be reached at her marketing location at the Eagle Rock Plaza, Ground Floor (infront of Jollibee), 2700 Colorado Blvd., Los Angeles, CA 90041, phone number (323) 356-3803 or (323) 254-6787. Her office provides the following products and services: insurance and financial services, income tax preparation, notary public, and resume preparation.
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Evangeline does not provide legal advice. Please consult with your lawyer regarding the divorce process. The purpose of this article is to provide information of general interest to our clients and prospective clients. The information provided is general in nature and should not be considered complete information on any product or concept described. (Advertising Supplement)
( Published on December 20, 2008 in Asian Journal Los Angeles p. C5 )
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