Understanding Retirement and What it Means for You

Couple meeting with advisor, what retirement means for you

Starting early has many benefits.

Retirees today are facing a complex economy, longer life expectancies and more opportunities to work longer than previous generations. All these factors make choosing when to retire a complex decision.

Here are a few factors that can impact when you choose retire:


According to the Social Security Administration, the earliest age you can start receiving retirement benefits is 62. If you retire before your full retirement age, you’ll receive reduced social security benefits. If you retire when you reach full retirement age, you’ll receive full social security benefits. Visit the Social Security Administration website to determine what your full retirement age is.

Retirement Savings

The earlier you start saving for retirement, the better. For example, a person who starts saving for retirement at the age of 20 is probably going to have a bigger nest egg than a person who doesn’t start saving for retirement until age 40. The size of your retirement savings can factor into when you’ll be able to retire comfortably.

Spending Habits

Your spending habits can be a determining factor of when you get to retire. If you’re always spending your income on big purchases like vacations or just-for-fun vehicles, then you may not get to retire as soon as a person with similar income who has put that money into retirement savings instead.