Social Security: 4 Steps To Take Now If You Want To Retire Before Age 67
Written by
Chris Adam
Edited by
Zuri Anderson
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If you’re a younger worker, or know someone who is, early retirement may be part of the plan. After all, lots of workers now want to retire at 40, 50 or 60.
As you’re probably aware, when it comes to Social Security, the full retirement age is 67 for those born in 1960 or later. As noted by AARP, the changes in age requirements come from legislation signed by President Ronald Reagan. When it comes to waiting, age can make a big difference in how much you’ll qualify for when it comes to Social Security.
If you want to retire before you reach 67, here’s a look at some steps to take now.
Figure Out Your Goals
According to Ramsey Solutions, one of the first things you need to do is to determine your goals for early retirement. Those goals will help guide your plan and financial strategy.
In addition, you can create a mock retirement budget. This will give you a better idea of how much money you’ll need each month to make the early retirement dream a reality.
Plan for Health Care and Taxes
Healthcare and taxes are two areas you specifically need to consider as you plan for early retirement. You want to determine how you’re going to pay for health care after you leave full-time work. In addition, per Fidelity, you should also look into withdrawal strategies to help reduce the effects of taxes on your finances in retirement.
Get To Work
In this case, “get to work” means figure out how you’re going to achieve your retirement goals and then taking action. According to Ramsey Solutions, you need to figure out ways to get out of debt and invest consistently.
You may consider investing in a bridge account and real estate to help fill in the gap between early retirement and when you’re able to start taking out money from retirement accounts without penalty. A brokerage account is an example of a bridge option to help with that gap.
Seek Some Help
You don’t need to do all of this by yourself. You may find it helpful to meet regularly with a financial advisor. This professional can help you make decisions that’ll take you in the direction of your goals for early retirement. You may also find it helpful to look at online resources and apps designed for personal finance.
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