Early Retirement Age: Planning Ahead

The majority of Americans define early retirement age as 55 years or younger. It is important to note that the US Federal Government will not provide Social Security until the applicant is 62 years of age. Taking advantage of benefits before the age of 62 results in a reduced benefit plan. Those who wish to retire at an early age should consider living off other sources of income instead of Social Security until the age of 70, when payment will be substantially more. In addition, there are a series of restrictions placed on retirement funds that make the money virtually untouchable until the age of 59 and a half. Retiring at 55 is most common for those who began military or civil service when they were very young. Without those benefits, attempting to retire before the age of 62 requires a lot of planning and financial responsibility.

Obtaining enough assets to fund an early retirement age is a challenge many Americans find almost impossible to overcome. Someone who is trying to retire at the age of 55 should be aware that their money might need to hold out anywhere between 20 to 45 years. Retirement income calculators, just a quick web search away, offer a fairly reasonable estimate that can help citizens plan ahead. Those who feel like they might need a more professional source to guide them should consider seeking out the services of a qualified financial adviser. Although the Affordable Care Act might make coverage more accessible for those who attempt to retire earlier than 55, planning ahead for a secure source of health insurance coverage will make an early retirement age seem much more obtainable. 401k plans allows citizens to access their funds as early as 55 years of age without having to pay a penalty. Of course, there are other restrictions that must be heeded. It is important for those planning on an early retirement age to know about all of the restrictions and loopholes that lay ahead.

The best course of action to take is to start saving early. Studies show that if people start saving for retirement before the age of 30, they have a better chance of retiring before the age of 55. An early retirement age may seem like a lot of hard work, but vacationing for 20 years is most definitely a desirable reward.

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