Mall Americans aim to retire at age 62, because that is the earliest age to start collecting Social Security. But in fact, in a recent survey of investors in 24 countries, Natixis Investment Managers found that employees collectively believe they will retire at 62. The question is: is this a good idea?

Is 62 too young to quit?

In some countries it may be possible to retire at 62. But in the United States, it’s a more difficult prospect.

Many people find it difficult to save for retirement, and the days are gone when the majority of workers were entitled to a generous pension after their careers were over. This means that many older people end up being heavily dependent on social security. And those who claim their benefits at 62 inevitably end up drastically reducing that income stream.

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Workers are entitled to their full monthly social security benefit at full retirement age (FRA), which starts at 66, 67 or somewhere in between, depending on the year of birth. To subscribe to benefits at the age of 62 means to reduce them by 25 to 30%, and this permanently in most cases.

Now the workers who to do successfully raising a large sum of money in a retirement plan may be more than capable of comfortably ending their career at 62. .

In fact, older people are not required to register for FRA benefits. On the contrary, they can delay their declarations and get an 8% increase in their benefits for each year that they do so. This incentive expires at age 70, but it means workers with an FRA of 67 can increase their Social Security pay by up to 24% – for life.

When should you planning to retire?

Many people plan to retire at a relatively young age so that they have the opportunity to take advantage of this stage of life before health or mobility issues arise. When setting your personal retirement age, there are several factors to keep in mind:

• Your life expectancy (if you are healthy as you approach retirement, you may live longer than someone your age who already has many problems)
• Your retirement goals
• Your retirement savings balance
• Your willingness to work as a senior or not to some extent

If you think you’ll live longer, whether it’s because of your excellent health or family history, retiring at 62 might not be the best idea, especially if that also means claiming Social Security. at age 62 and reduce your benefits in the process. On the flip side, if you’ve saved well for retirement and also intend to maintain a low-key lifestyle, retiring at 62 can work very well, even if your plan is to collect benefits. after you submit your resignation.

Plus, if you intend to continue earning income during your retirement, you’ll have more leeway to end your career sooner. Retirement is a great time to start a business, and working to a certain extent could give you something meaningful to do with your time.

Ultimately, there is no right or wrong age to retire. You might want to retire at 62, and it might work well. Just make sure you understand the consequences of leaving the workforce at this point in life.

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