What is the Retirement Age in the US

By | August 14, 2017

In a recent research, it has been displayed by the U.S. Census Bureau that 63 is the average retirement age in the United States. Regarding the Medicare benefits and the Social Security, 63 is an early retirement age. According to the data of U.S. Census Bureau, the average length of retirement is 18 years.

Variations in Retirement age according to the state

Different states have a different retirement age. The states that have a higher cost of living, have a higher retirement age. People have to work for a long time so they can easily afford retirement. On the other hand, the state with a higher ratio of unemployment has a lower retirement age. Most of the people are often forced into retirements so vacancies can be created for new individuals.

The five retirement ages

Everyone has the authority to retire anytime they like. There are a few individuals that are still working at the age of 85. Here are the top 5 retirement ages according to the data collected by U.S. Census Bureau.

1.     59-60

It is the time when you are allowed to withdraw from the retirement savings like the 401 (k)s. Without paying any penalty regarding the IRAs

2.     62

At this age, you can have all the social security retirement benefits. Your benefits will be reduced if you have filed for the social security benefits before the retirement age.

3.     65

If you want to become eligible for Medicare it is the eligible age. Your association with the Social security benefits will have no effect. For many companies, it is the average retirement age included in their plans.

4.     66-67

In the Social Security the full retirement age is 66. You can easily claim your benefits once you reach the age of 66 if you were born in 1954. In case you were born after 1954 the age for retirement will gradually increase.

5.     70

70 is the age when you will start the collection of the Social Security benefits. remember that there is no reason to delay the benefits beyond the age of 70. It is the age when you will have to withdraw the amount from the pre-tax accounts for retirement. You will also have to deal with the required minimum distributions from the accounts once you reach the age of 70 or above. It is all based on the life expectancy tables by IRS.

Retirement age for Medicare and Social Security

What most of the individuals consider the age of normal or average retirement is regarded as the full retirement age by Social Security. Commonly known as the FRA is the age when you will get all the benefits that come with the Social Security.

Your FRA will be determined by your year of birth and if you are turning 62 in 2017 then you FRA will be between 66 and 67. You will receive more benefits of you after reaching FRA and fewer benefits in case you have claimed for the benefits before reaching FRA.

In the case of Medicare if you have retired before the average age you will have to wait until you reach the required age to gain the benefits. It means you will have to pay for the private health insurance or other services.

If you are near retirement

Regardless of your age, it is important that you start planning for your retirement today. It is important that plan properly regarding the amount of your money you should spend in a year. Maintain a budget and take out money for the Social Security investments.

It would be wrong if you wait to reach the age of retirement for planning. The benefit of preparing early is that even if you are forced into retirement you will have everything properly planning.

In case that you want to retire early, you have to plan for at least 10 more years of retirement as compared to the individuals that retire at the average age. You can easily spend 20 to 40 years in retirement.

A few things that you have to consider while planning for the retirement are:

  • How you will manage the longevity
  • How you will pay for medical bills
  • What you are planning to do with free time
  • The time you will start Social Security benefits

Ease into Retirement

Retirement leads to a major change in way of life. Many individuals are best off with a steady progress from all day work to a full-time retirement. Specialists and different experts, for example, bookkeepers or lawyers frequently can close their work routine to four days seven days, at that point three days seven days. On the off chance that you can plan this, it enables you to keep on using the aptitudes you have obtained and worked numerous years past the normal retirement age, yet at a slower pace.

On the off chance that you have not spared enough, broadening your retirement age from age 62 to an age 65 retirement can positively affect the budget achievement of your retirement financial plan. One reason is that Medicare begins at 65 and preceding that paying for medicinal services without anyone else can be costly. Likewise, by working longer, you have three additional times of adding to investment funds as opposed to pulling back from reserve funds.

Working Longer – Smart Move

For the individuals who anticipate working past full retirement age, contemplate when you will begin your Social Security benefits. A few people think they will make a smart move and begin Social Security early while proceeding to work. Yet in the event that you start benefits early, you might be liable to the Social Security income limitations, which will expect you to pay a few advantages back on the off chance that you profit.

As we are living longer than at any other time, many individuals should consider postponing retirement until age 70. Postponing retirement until the point can mean less stress once you reach the age. At that point, you can relax mentally and genuinely enjoy the most of your retirement years.

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