Retirement may seem like it’s far off for many of us, but ask anyone who is retired; start putting money away often and early! There is no specific age at which you should or need to retire. It’s all about when you want to retire lining up with when you will have enough money put away to replace the money you make from working. Many people also consider lining up their retirement with Social Security. The earliest you can begin receiving Social Security benefits is 62. However, if you begin claiming at this time (if you were born after 1960), you will sacrifice a portion of your benefits. Full retirement age is 67, although you can further delay your retirement to age 70 to increase benefits.
When Should you Start Saving?
In one word? Now. In a few words? In your 20s. We also want to mention that it is never too late to start saving. Every dollar counts and you will thank yourself later for saving. The typical advice is to save 70% to 90% of the annual money you make pre-retirement. For example, a retiree who earns an average of $63,000 per year before retirement should expect to need $44,000 to $57,000 per year in retirement.
What’s the Best Way to Save?
There are a few different options. If your employer offers a 401(k) or other similar options, we suggest you take part in it, especially if they match dollars. You can also open your own retirement savings account. We suggest talking to a financial planner if you want in-depth help. The Family Credit Union can help with some questions you may have and we can help you with a retirement savings account. Contact us today to learn more. The Family Credit Union is here to help you through all stages of your life, including student loans, home loans, auto loans, and more.
