Center for Retirement Research at Boston College. " In the United States, you’re eligible to begin collecting retirement benefits from the. At what age will you get 100% of your Social Security benefits? Financial planners like to refer to a “three-legged stool” as an analogy for this balancing act. Early on, these private pensions were unreliable and not all employees qualified. While the biggest factor affecting the size of that check is your yearly earnings over a lifetime of employment, there's one decision you'll make as you near retirement that can also significantly affect how much you get in retirement benefits -- the age when you first claim them. Regardless of your age, if you are within five years of when you think you'll want to retire, you should start planning now. In states with high unemployment, the average retirement age is actually lower. In the 1950s, the SSA initiated a disabilities benefit program and in 1965 the Medicare bill was signed into law by President Lyndon Johnson. This is when your employer makes contributions to your 401(k) when you participate in their retirement plan. Learn More. The good news is that I can help you figure out your individual retirement number. Build up cash reserves, develop projections based on various ages to start Social Security, and figure out how much you'll need to spend each year. Don't wait until the year you want to retire to start this planning. To determine just how much it takes, GOBankingRates analyzed consumption expenditures of Americans ages 65 and older, based on data sourced from the Bureau of Labor Statistics’ Consumer Expenditure Survey. Then, increase the percentage you invest as your salary increases. The year and month you reach full retirement age depends on the year you were born. 1959 Find out your full retirement age, which is when you become eligible for unreduced Social Security retirement benefits. If that’s the case, I want you to invest as much as you can. Copyright, Trademark and Patent Information. Company pensions were more common in the 20th century, but many people still have them now (especially in certain industries). So, you may want to be flexible as you approach retirement age. First, I use a strict definition of retirement savings – here think, 'retirement accounts' and any defined benefit plans which also have a cash value. The best way to reach your financial goals is to stay focused on what you want for your future and ignore everything (and everyone) else that might distract you. There are several things to consider before you retire too early, such as how you will pay for health care costs, your longevity (how long you may live), and what you'll do with your time.. Don’t forget to also factor your expected retirement expenses into your planning. Average Retirement Income 2020 by Household Age — Incomes Drop Dramatically for the Oldest Surveyed. 70? Some even return to full-time work and then retire again in a few years. Here’s How to Retire Early and Quit the Daily Grind, The Complete Guide to the Best Retirement Age, 24 Ways To Maximize Your Paycheck This Year, Survey: Only 18% of Americans Believe Their Tax Dollars Are Being Spent the Right Way, 24 Things To Do When You Have More Bills Than Your Paycheck Can Cover.