The Average Retirement Age and the Age People Want to Retire at Vary Dramatically According to Darcy Bergen
The average age to retire is 62 in the United States. However, research is showing that more people want to retire between the ages of 55 and 65.* Darcy Bergen, a financial planner in Arizona, explores why more people are looking to retire earlier.
One of the reasons Darcy Bergen states that people want to retire earlier has to do with being burned out from the job. People who work in high-stress jobs want to get out as soon as they can. By the time they reach their mid-50s, the idea of retirement looks better and better.
Additionally, many people are ready to retire once their youngest leaves the house. With a high-stress job and kids to deal with, it can be that much more stressful. Once the youngest is out of the house, there’s more to consider in terms of how to spend retirement years. This includes pursuing hobbies and traveling.
If you are fortunate enough to have your youngest leave the house at 50 and can retire, it could mean needing retirement savings to last for 50 years.
Not everyone has the means to retire at the age of 50, Darcy Bergen explains. As such, it’s important to start exploring a retirement plan as soon as possible. Darcy Bergen, who has a radio show regarding financial planning and also teaches a retirement planning class at a local college, has created countless plans. He believes the key is to start as young as possible.
Darcy Bergen also recommends that people take the time to explore various retirement income options. It usually starts by looking at a retirement plan with an employer, such as a 401k. A 401K should be set up immediately, especially if an employer will match contributions. Based on circumstances following that, an IRA should be looked into.
With more people exploring retirement at an earlier age, Darcy Bergen says that it’s important to establish a financial plan. It can help create realistic expectations and increase the chances of a person having the money that they need to retire at a younger age.
Darcy Bergen also warns that retiring too early with insufficient funds can lead to problems. Penalty-free access to IRAs is not available to a person until 59.5 with few exceptions. Social security income is not available until 60 and doesn’t give you as much income when you claim at this early age. As such, specific investment opportunities will need to be explored. It will increase the odds that the money is there as soon as a person is ready to walk away from the workforce.
Darcy Bergen recommends everyone be realistic about retirement age and work with a financial planner to establish a full plan.