Build an emergency fund
Before you pull the trigger on retirement, make sure you have some money saved for a rainy day—or a new roof, car repairs, medical expenses or some other unexpected need. Keep your emergency fund in a separate savings account—that way you won't be tempted to spend it on something else.
Try to start saving early so your money has time to build interest. Take as much out of your current paycheck as you can to invest in retirement funds and savings plans. Even if you can't add a lot of money to your account right away, try to increase the amount you're putting in every month.
Once you have an estimate of your annual retirement spending, you can begin to work out how much you need overall by multiplying your annual spending by the number of years you expect to spend in retirement, figuring in an extra 3% per year for inflation.
Sixty is the most popular age to retire early, according to new research from Aviva which reveals the key steps people have taken to embrace early retirement and examines the costs and benefits of doing so. One in four (25%) are planning to celebrate their 60th birthday by leaving work behind.
The Harvard study found that housing, at a national average of $17,454 annually for retirees in 2021, remains the highest cost for the average retiree. Housing includes rent or mortgage payments (including principal, interest, taxes, and homeowners' insurance).
A good retirement income is about 80% of your pre-retirement income before leaving the workforce. For example, if your pre-retirement income is $5,000 you should aim to have a $4,000 retirement income.
The overwhelming majority of retirees say that all four pillars—health, family, purpose and finances—are essential to optimizing well-being in retirement.
People retiring early in this study were significantly less likely to die from a stroke or cardiovascular diseases. An analysis in the US in 2018 found that seven years of retirement can result in as much as a 20% reduction in the chance of getting a serious condition such as diabetes or heart disease.
The finding echoes a few others, the New York Times reports: “An analysis in the United States found about seven years of retirement can be as good for health as reducing the chance of getting a serious disease (like diabetes or heart conditions) by 20 percent.
December 31st is always a popular retirement date, but this year, 2022, it's especially popular – because this year December 31st is also the last day of a pay-period, and last day of the month, and the last day of the leave year – a trifecta!
Retiring on the last day of the month is typically the best option. This enables you to collect all your paychecks during this period. You can also benefit from collecting any holiday pay that might be offered by your employer for that month.
12-6 months before your 65th birthday
Talk to someone about your retirement financial goals and make a list of your expenses or financial obligations. Meet with your employee benefits department or call your existing health plan to learn about plan options available to you after retirement.
Retiring on $4,000 a month will give the average American plenty of options for a fulfilling retirement—and leave some room to splurge on the grandkids and travel.
The ASFA Retirement Standard Explainer says a comfortable retirement lifestyle would need $640,000 in super for a couple, or $545,000 for a single person.
Average monthly expenditures for those 65 and older — including rent, groceries and healthcare — stand at around $4,345, according to the latest government data.
The majority of retirees are not millionaires but it's possible to reach $1 million in savings if you're strategic in your approach. Getting an early start can be one of the best ways to reach your goal, as you'll have more time to benefit from compounding interest.
The average retirement income for married couples over 65 was $101,500 in 2020. Since high incomes tend to pull up the average, the median retirement income may be a better benchmark.
The largest expense for most Americans is housing. At $1,050 per month, the cost of having a roof over our heads accounts for 21% of a household's monthly budget.
Workers in the United States generally retire at around age 64, though data shows that the average age varies by state. For example, the average age of retirement in Washington, D.C., is around 67, while many states' average age is around 65, such as Iowa, Kansas, Maryland, Vermont, and Texas.
At 23, life satisfaction is at its highest.
All things considered, 23 is the magic number for feeling particularly satisfied with your life. The conclusion is based on a survey of 23,000 people in Germany. Your muscles are their strongest at age 25.
Some people without access to ample cash reserves might plan to pull money from retirement accounts soon after stopping work, however. For such workers, the best time to retire might be at the very beginning or very end of the year.