Choosing the Right Early Retirement Age

Selecting the proper early retirement age can be difficult under certain situations. You want to make sure that you choose an age that will benefit you in every way before making a decision. Here are a few things to consider about choosing the right early retirement age.


One of the first thing that you will need to determine is your eligibility to access your retirement funds. For example, according to the standard rules of a 401k or IRA, you will need to be 59 1/2 before you can gain access to your funds without penalty. However, you might be able to access your funds through the Substantially Equal Periodic Payment or SEPP program. This is a program that will allow you to start taking your retirement money out before the age of 59 1/2. However, once you get involved with this program, you have to continue taking retirement payments. This means that you do not want to join the program too early because it could deplete your retirement assets.


If you are involved in a company that provides a pension plan, you will also have to look at the benefits that you will receive. Most pension plans will provide you with a certain amount of retirement money depending on how long you work with a company. This means that the longer that you are willing to work with them, the larger your retirement paycheck is going to be. Get a copy of the payment table for your pension plan and determine how much you are going to need in order to live comfortably upon retirement. Look at how many years of service it will take in order to get to this payment. This is how you should determine how soon you will be able to retire from your company.

Social Security Benefits

In order to start taking benefits from Social Security, you will need to be at least 62 years old. However, that does not necessarily mean that you should start taking benefits as soon as you are eligible. If you are able to delay receiving Social Security benefits, you are going to receive larger checks when you do start taking benefits. Look at the Social Security Administration's website in order to determine how much money you will be able to start receiving.


Many retirees are continuing to work in a different profession after they retire. This can provide them a way to receive additional income as well as stay busy during their retirement years. You should also take into consideration whether you plan on working after retirement before choosing an early retirement age. For example, if you want to get into a career that requires additional training such as nursing, you might want to factor this into your decision. This will allow you plenty of time to go through your education and get started working while you are still able and willing to do so

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