Money Talk With Slater

Making Money Across the Board

How Much You Need to Retire at 55

If you would like to retire at age 55, there are a couple of things you will need to think about that a person who retires later will not have to consider. Below are a few things to consider if you are serious about planning for an early retirement.

Longevity

If you retire at 55, supposing you will have an average life expectancy, your assets need to produce income for a longer period than a person who retires at 65.

It means you need to create an exact projection of what you think you will spend yearly. Then you can compare that to your income sources for retirement you feel you’ll have ready for you.

Social Security doesn’t begin until age 62. Also, there are restrictions and penalties for getting to your retirement money before 59 1/2 .

What this means is that if you want to retire at 55, you must have money or have a way to get it. One source of money won’t cut it. One choice you might think about is using 72 payments to take out from your IRA.

Medicare coverage won’t begin until 65. If you are thinking about retiring at 55, make sure you will have a solid health insurance coverage that you can depend on until you can get Medicare.

Filling Up Your Time

An long vacation sounds nice, but some find it isn’t as satisfying as they thought it would be. When considering early retirement, give real thought as to what you’ll do with your money and your time. Getting serious about a hobby or consulting are ideas.

You could volunteer or help raise the grandchildren. If you decide retiring at 55 might not work for you, move the age up to 62. For many, this is doable. Just make sure that you are emotionally and financially ready when you decide to do so.

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