When you are approaching retirement age, it’s important to think about your financial future and how you want to spend your golden years. You should have a clear picture of how much money you need for living expenses and if you will rely on Social Security or other sources of income.
Age at which a person can retire
The age at which a person can retire depends on many factors. It can vary depending on personal preference, family situation and financial needs.
The retirement age varies from country to country and is usually defined by law. It is also based on the length of the work contract or agreement between an employer and a retired employee.
When you reach 62, you can begin receiving Social Security benefits. But, you’ll receive a reduced benefit amount and your monthly checks won’t keep increasing.
Delaying your retirement age can be a good choice if you have an excellent reason to do so. For example, if you got a late start on savings or had a financial setback that wiped out a large portion of your assets, you may want to continue working longer to make up for those losses.
Age at which a person can claim Social Security
When a person reaches the age of 62, they are eligible to claim Social Security benefits. However, there are several factors that can affect a person’s decision about when to claim Social Security.
A 62-year-old who is struggling to make ends meet might benefit from claiming Social Security sooner than later. This can give them a boost in their monthly income, which they can use to make up for any income that will be lost by not working.
Alternatively, if you have a spouse who has also worked for a long time, you may decide to claim your spouse’s Social Security benefit instead of your own. But if you do so, you will lose 30% of your benefit amount for each year that you claim before your full retirement age (FRA).
Age at which a person can claim a pension
Most people can claim a pension once they reach retirement age (usually 65). However, there are some circumstances where you can access your pension before that.
For example, if you have serious ill health and can’t wait until you reach retirement age, you may be able to take some of your pension earlier. Ask your pension provider for more information on how this works.
The amount of a pension will depend on your age, how much you have saved in the scheme, and your health. It will also be affected by any personal or company pensions you have, as well as your income from part-time work in retirement.
To qualify for a State Pension you need to have a yearly average of at least 10 qualifying PRSI contributions paid or credited, from the year you first started paying You can also get a partial pension if you have a yearly average of between 5 and 9 contributions.
Age at which a person can claim an annuity
Annuities are an investment option for people who have saved enough in their retirement accounts to qualify for tax-deferred growth. They are a safe way to protect your savings from market volatility and allow you to convert a portion of that savings into an income stream in the future.
Generally, annuities are purchased at or near retirement to maximize their benefits.
However, you can purchase an annuity at any age, but you should consider your financial needs and longevity expectations before making the decision to do so.
An income annuity, also called a retirement annuity, is the most common type of annuity. It offers a lifetime monthly payment that is guaranteed to be paid out for life. It is based on actuarial predictions of your life expectancy at the time of purchase.
