Guest Article by Nisha Sharma, on behalf of http://mha.org.uk
Whether you are interested in retiring in the next few years or if you simply want to have a plan in place for what your future holds, choosing the best age to retire can depend on a number of factors as well as your current financial situation and security. Determining the best age to start thinking of retiring can be done by reflecting on your current financial security as well as the plans you have after retirement and the amount of money you will require.
Retirement Stages and Retiring Early
It is possible to plan for "early retirement", retiring on time and even late retirement depending on how many years you have worked and whether or not you have been disrupted from work due to health problems or injuries during the course of your time working. Retiring early and relying on benefits often occurs between the age of 55 and 62, as 62 is the standard age to retire and to begin collecting a pension and Social Security benefits.
One of the major advantages of retiring early is the ability to take up new hobbies, travel and explore new interests. However, retiring earlier does not necessarily mean pensions and Social Security benefits will be immediately available and the amount of retirement funds you are qualified for will not be as much as opposed to retiring on time or even later. Retiring early will also require you to pay for your own health insurance until you are qualified for Medicare.
Retiring On Time
Retiring on time often occurs between the ages of 62 and 67, allowing the retiree to begin collecting Social Security benefits, pensions and even the support of Medicare nearly immediately after retirement begins. Retiring on time is a way to ensure you are adequately covered financially and that you can still continue to get the healthcare you need. However, retiring on time may leave less time overall to pursue traveling, hobbies or even a potential second career.
Having a late retirement after the age of 67 is possible if you simply enjoy working or if you believe you want to save more for your retirement fund. Although you may have less time to enjoy your retirement fund, you will also have more money accumulated from working additional years. It is also still possible to file for Medicare assistance at the age of 65 regardless of whether you choose to continue to work. Working past the traditional retirement age is a way to guarantee you will not struggle financially once you do choose to leave work.
Choosing When to Retire
Because everyone lives their lives differently, choosing when to retire greatly depends on how long you have worked, whether you enjoy your work or not and the amount of financial planning still left to be done. When you choose to retire at any time, having a clear understanding of your financial picture and future plans will help you to determine when retiring is best for you and your family.
Nisha Sharma represents a Website called MHA.org.uk.