There appears to be a disconnect between when younger generations of Americans believe it is ideal to retire and their savings. In a recent survey by Bankrate, the youngest working Americans (millennials and Gen-xers) think the early 60s is the right time….
The “Too Young” Conundrum
Early retirement gives you an opportunity to get away from the corporate world and pursue your interests. But people who retire in their 50s suffer from what I call the “too young” conundrum: they are too young to qualify for government benefits and could face penalties if they try to draw from retirement accounts...
Health Insurance – The Iceberg that can Sink Early Retirement Dreams
When someone says that their ideal retirement age is before the age of 65, and especially if it’s significantly before then, the first question I ask is, “What is your plan for health insurance?” You see, while it may be a lot of clients’ #1 goal to retire as soon as financially possible, what a lot of them don’t factor in is the impact of this one question....
Think 10% is an Appropriate Savings Rate? Not if you Want to Retire Before Age 70
In another tidbit from Fidelity’s Retirement Savings Assessment study, the firm took a look at the impact your retirement age has on the appropriate annual savings and withdrawal rates. See their findings below:
An early retirement would mean that you have less time to save and a longer retirement to fund. The average age for retirement is 62....