When is the best time to retire: Part 2 – There are factors that play a role in answering this question. We will take a closer look at these #Retirement
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As workers approach their peak earning years, many begin to think about questions like “When is the best time to retire?” We hear stories all the time about people living longer, which is good news. Individuals still thinking about retiring at age 62, need to figure out if their retirement plans are taking this new information into account.
Deciding when to retire is a very difficult decision for many of us. We’re going to look at three distinct timeframes for retiring, and examine the pros and cons of each decision.
We’re going to take an upbeat approach to retiring, and start out with a very simple assumption: We’re all going to live a full and rewarding life in retirement. That being said, let’s figure out when is the right time to retire.
On time Retiring
Pros and Cons of Retiring “On Time”
We’re going to define “normal” or “traditional” retirement age as those years between age 62 and 67. In general, these are the years when we will qualify for early or full Social Security benefits. Most employees also seem to use the age of 62 as a guide for normal retirement age.
Perhaps the biggest benefit of retiring on time is that it allows us plenty of time to enjoy a healthy and fulfilling retirement. Other benefits of retiring on time include:
- More time to create a substantial retirement fund. Putting money aside for retirement will be less painful as we watch the power of compounding interest grow our funds.
- Paying for the expense of health care insurance is no longer a concern as we’ll qualify for Medicare right away.
- By retiring in a more traditional timeframe, we’ll usually qualify for un-reduced pension benefits and Social Security.
On the downside, retiring on time means we’ll have less time to pursue a potentially rewarding second career.
Insure Brokers have professional specialist brokers who can assist in all the above to give you peace of mind. Contact us for a free consultation www.insurebrokers.co.za | (039) 316-6111 | firstname.lastname@example.org
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