Aging Edge’s recent article, “Retirement secrets no one wants to talk about,” says there’s a lot more to retirement than you might think. If you don’t plan carefully, you may see some big surprises.
However, understanding these facts can help you to improve your chances for a great retirement.
- Retirement could last a long time. Many folks don’t think about life expectancy, when it comes to retirement planning. However, we should consider the fact that we need to plan for a longer life. That means planning for a longer retirement. As you plan, you should take into account that your retirement might last a few decades. Be sure that you have enough saved to live comfortably.
- Plan to stay busy. A life of leisure in retirement sounds great. You could quickly become bored, however, if you don’t have some ways to spend your days. Create a game plan to keep yourself busy and engaged. Without a plan, your health and spirit might decline. This includes staying physically active by exercising regularly. You can also stay mentally engaged, by working in a paid or volunteer position. You can start a new hobby or enroll in courses online, at a community center or at a local school.
- Time your Social Security claim right. We all know you can begin collecting Social Security retirement benefits as early as age 62. That’s the most common age for claiming benefits. However, people are frequently shocked by how much their benefits are reduced by claiming Social Security early. If you start to take benefits at 62, you could receive 30% less.
To receive your full benefit, you have to wait until your full retirement age. That’s age 66 for people born between 1943 and 1954. It increases by two months up to age 67 for every birth year after 1954 up to 1960. If you were born in 1960 or later, the full retirement age is 67. Therefore, you’re better off delaying past your full retirement age to start collecting Social Security. If you wait until age 70, your benefits increase by 8% a year.
Reference: Aging Edge (July 6, 2017) “Retirement secrets no one wants to talk about”