In San Diego, there are many people wondering in this economy, when they can retire, when to take social security, how much they need to retire, etc. Social security has predicted that many Americans will live into their 90’s in the years to come and the cost of living will continue to increase so these aspects of retirement also have to be considered.
When to take social security? Although the normal age is 66 years, you can take benefits as early as 62, but your monthly benefit will be reduced. Social security has a table to determine how much it will be reduced. If you take social security early and still continue to work, your benefit will also be reduced for every dollar you earn over $14,160. See the SSA website for a chart on the amount of reduction.
If can be difficult to calculate how much you need to have saved to start retirement. Many people by delaying retirement just for a year or two can increase their annual retirement income by 9 or 10%. There are many on line sites where you can calculate how much you need for retirement. One is on Money Magazine. Another is offered by T. Rowe Price and there are many others. Make sure when you input information, consider that most peple will need at least 70% of their pre-retirement income after they retire. Be sure to add in all sources of income such as a part time job or a second career. Also figure in your projected social security benefits at retirement age.
Health care is also a retirement consideration. At age 65 you qualify for Medicare but many people also purchase a Medigap policy to supplement Medicare. A great guide to most of these issues can be found on the CNN Money site, including a section on estate planning.
The experienced estate planning lawyers at Law Office of Scott C. Soady, A Professional Corporation can help you with the estate planning aspect of retirement planning. We have helped many people facing retirement create an estate plan and the documents they need to feel secure about their later years.