Picking Retiement Age Flashcards
What factors impact the decision regarding when to retire?
Financial ability to retire - This is the ultimate rate limiting step
Client may have insufficient savings or may need employer benefits.
Enjoy work and are capable of continuing - Working offers a range of economic, social, psychological benefits OR does not like work, and wants to retire, or try self employment.
Client may also have continuing financial obligations such as children still in college, a family member with special needs, etc
Health of potential retiree or his or her spouse/family - If health is declining, or client has serious health problems, then early retirement may be indicated assuming they can afford it.
Presence or absence of strong interest in new activities/career in retirement
Age -If client is 65 they can go on Medicare. If they are FRA, they can get their full PIA, and even work part time without withholding of benefits.
Timing of retirement of spouse
Why is 65 such an important year in regards to picking retirement age?
Medicare starts. Prior to going on Medicare, the cost of providing ones own health insurance, and other costs, maybe prohibitive for most.
