What Age Can I Retire?

Many people are counting down the days or years until they can retire, but not everyone is counting down to the same retirement age. Your brother might be comfortable retiring at 62, while your co-worker plans to work until age 70. The right time for you to retire will depend on many things, including your:

Savings, investments, and other assets
Social Security retirement benefits
Access to affordable health insurance (if under age 65)
Projected living expenses in retirement
Level of debt
Health and that of your spouse (and if you’re married, that of your spouse)
Desire to stop working or start working in a different capacity
List of things you want to do in retirement

How will I pay for retirement?

Your income in retirement will probably come from a few different sources, such as:

Social Security
401(k) accounts and IRAs
Pension benefits
Savings accounts
Home equity

The key to knowing whether you’ll have enough retirement income to fund your golden years – whenever they start – is to identify how much you’ll need to pay for your expenses in retirement and whether your current savings rate will help you accumulate enough savings by the time you retire.

Many financial professionals suggest that you’ll need between 70-80% of your annual income to continue your current lifestyle in retirement. Using your savings rate and the Ubiquity Retirement + Savings calculator, you can compare your current savings rate to the estimated income you will need in retirement to see if you’re on track.

When can I start drawing Social Security retirement benefits?

Most people are depend on Social Security retirement benefits to provide a portion of their retirement income. You can start claiming retirement benefits from Social Security anytime between age 62 and your full retirement age (which varies depending on your birth year.) However, if you start benefits early, your benefits will be 25–30% lower than if you waited until your full retirement age to draw benefits.

If you were born between 1943 and 1954

If you were born between 1943 and 1954, your full retirement age is 66. If you claim benefits before age 66, you will receive only a portion of the full benefit you could have received (but you will be receiving benefits for a longer time.)

Age You Start Benefits

% of Benefit You Will Receieve

62

75%

63

80%

64

86.7%

65

93.3%

66

100%

https://www.ssa.gov/planners/retire/1943.html

If you were born between 1955 and 1959

If you were born between 1955 and 1959, your full retirement age is based on the following sliding scale. If you claim retirement benefits before reaching your full retirement age, your benefits will be reduced similarly to the percentages noted above. You can enter your birth year on the Social Security Administration website to find the exact percentages.

Year of Birth

Full Retirement Age

1955

66 & 2 months

1956

66 & 4 months

1957

66 & 6 months

1958

66 & 8 months

If you were born between 1960 or later

If you were born in 1960 or later, your full retirement age is 67. If you choose to claim your benefits early, you will receive the following reduced percentages.

Age You Start Benefits

% of Benefit You Will Receive

62

70%

63

75%

64

80%

65

86.7%

66

93.3%

67

100%

https://www.ssa.gov/planners/retire/1960.html

Claiming spousal benefits

As a spouse, you can claim a Social Security benefit based on your own earnings, or you can collect a spousal benefit that will provide you up to 50 percent of the amount of your spouse’s Social Security benefit as calculated at their full retirement age (FRA). If your benefits as a spouse are higher than your own retirement benefits, you will get a combination of benefits equaling the higher spouse benefit. If you collect a spousal benefit and you begin collecting this benefit before you reach FRA, your benefit will be permanently reduced.

What if I delay receiving my Social Security benefits?

If you wait until after your full retirement age to start drawing benefits, your benefit amount will increase by about 8% each year benefits are delayed, up to age 70. For example, if your full retirement age is 67, you can increase your Social Security monthly benefit by 24% by waiting until age 70 to start receiving benefits. Delaying retirement benefits may also increase your payments by increasing your lifetime earnings.

How long will I live in retirement?

When it comes to planning for retirement, one of the biggest factors to consider is time. How long you might live directly affects how much you need to save for retirement.

Statistics show that Americans’ life expectancies are growing. According to the Social Security Administration, the average 65-year-old male today can expect to live to age 84.3, and the average 65-year-old female can expect to live to age 86.6.

If you retire at age 65, you could spend at least 20 years in retirement, and maybe more.

How can I prepare now?

After considering all of the factors that will affect your retirement income and expenses, pick a realistic retirement age. Thinking about your ideal retirement lifestyle, your financial resources, and your current and future health will help you determine when you should begin this next stage of life–and how much it will cost. Then, use the Ubiquity + Retirement Savings calculator to see if you’re on track to retire at that age or if you need to increase your retirement savings. For 2023, you can save up to $22,500 from your paycheck in your 401(k). If you’re age 50 or older, you can save an additional $7,500 per year in your 401(k).

If you’re a small business owner and need a 401(k) plan for yourself and your company, only Ubiquity offers flat-fee plans plus free expert advice. We’ll fully customize your 401(k) to meet the specific needs of your small business.

Check out our cost-effective, plan solutions

Resources for retirement age

Social Security Administration: Calculators: Life Expectancy, https://www.ssa.gov/planners/lifeexpectancy.html
Social Security Administration: Calculators, Retirement Estimator, https://www.ssa.gov/benefits/retirement/estimator.html
Medicare, Getting Started With Medicare, https://www.medicare.gov/sign-up-change-plans/getting-started-with-medicare

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