It is understandable that most of us want to retire early. On the average, 62 is the age that Americans retire. If you are retiring at 62, make sure that you are aware of health insurance, social security, and these other things.
Retiring at 62: Factors to Consider
Retiring at 62 means, you are also retiring from the health coverage that your employer provides. If that is the case, you have to get health insurance on your own. Remember that you won’t be eligible for Medicare, and even Medicare Supplements or Advantage plans until you turn 65. But you don’t have t worry; there is health insurance age 62 to 65 people should take advantage that would fit their budget and needs.
But also, you have to know that Medicare does not cover all your health care expenses. It is a common misconception that Medicare covers everything. You might still need Medigap plan to cover the gaps of Original Medicare.
It does not mean that you are already retired you can start withdrawing your social security funds. When to start withdrawing your Social Security funds is one of the major decision you have to make in retirement. Your decision can make or break your future finances. So, before you decide when to start taking Social Security benefits, take time to analyze and strategized how or when you will have it. Remember the later you start our benefit, the bigger it will become. Social Security provides inflation-adjusted income for as long as you live.
Consolidate your retirement accounts for easier management
If you have multiple retirement accounts such as IRAs, employer-sponsored plans, 401(k), etc., you might want to consolidate it into one account. According to The Balance, When you use a large, well-known financial custodian, you can build a well-diversified portfolio by owning numerous types of investments all held in single accounts.
Also, there are tax rules that are easier to follow when you have consolidated accounts.
Another thing to keep in mind, you don’t have to immediately take money out of your retirement accounts soon as you retire. Taking benefits should be done strategically to make sure that your money will last the entire retirement years.
Retiring at 62 does have a lot of factors that you need to know and consider. Failing to regard those factor might pose a risk to the success of your entire retirement. So before you decide to retire at a certain age, make sure that you already have created a financial strategy to sustain longer retirement years.