Deciding when to retire is a highly personal choice and one as unique as your own life story. While the government may suggest one age, the right time for you could be years earlier or later. Before settling on a date, reflect deeply on the life you want to lead after leaving your career. You may crave more time with the grandkids or dream of pursuing those travel plans you put on hold. It’s essential to consider how you will stay stimulated and find purpose. Outlining a holistic vision for your future will help ensure that your hard-earned retirement is as rewarding and meaningful as the journey that came before it. Only then can you determine, with confidence, when it's time to embark on that next adventure. Here are a few factors to consider in deciding when to retire.

Social Security Retirement Age

While you become eligible to collect Social Security at age 62, holding off on receiving benefits until age 70 can come with significant rewards. Those who delay their gratification and wait until 70 to tap into Social Security will likely enjoy monthly checks that are a bit larger than if they had started collecting at 62. Though additional years of work may seem daunting, the increase in benefits that can result from waiting until age 70 makes for a compelling case to be patient. After all, your golden years are to be enjoyed, not spent pinching pennies.

Although it would be nice if those Social Security benefits kicked in as early as the senior discount at the local diner, sadly, the diner doesn’t have a say in the Social Security retirement age. But, even if retirement is a few more years off than you'd like, that's all the more reason to take advantage of any savings you can along the way, like that well-earned discount on coffee at the diner. Because if staying on the job until 70 is what it takes, we'll need all the extra encouragement (and caffeine) we can get. These little perks make the time pass that much more quickly.

It can be tempting to start collecting Social Security benefits as soon as you’re eligible, but that decision comes with significant trade-offs, such as limits on the income you can earn without it affecting your benefits. If you continue working, even part-time, you’ll increase your future benefits and may gain more financial freedom and purpose. However, if your current job is too taxing, you might explore lower-stress work or pursue a passion project to generate income without sacrificing your hard-earned benefits. 

Remember, you’ve paid into Social Security your whole working life, so take advantage of the program on your own timeline, and don’t feel pressured into an early exit from the workforce if you’re not quite ready. With more life to live and love to give, you have plenty of time to enjoy the fruits of your labor down the road.

Your average monthly Social Security benefits are determined by the 35 highest-earning years of your career. However, sometimes happiness and well-being are more valuable than staying in a stressful job just to get a slightly larger Social Security deposit in your bank account each month. If the daily grind is wearing you down and a lower-paying and less stressful job would allow you to recharge and ease your way into retirement, it may be worthwhile to make the switch, even if just for a few years. Listen to your body, and don't be afraid to make a change—you've earned that right.

Social Security & Retirement Planning

For the most up-to-date information on social security, and more resources for planning your retirement, refer to the Social Security Administration website. They’ll have all the information you need and more.

Your Personal Retirement Age

Conventional wisdom suggests you need to work until 70 to retire, but that’s not necessarily the case. If you've been diligently saving for retirement, you have more freedom to pursue your dreams on your own timeline. At 55, you can start withdrawing from your 401(k) penalty-free, allowing you to retire early and travel the world or pursue a passion project. Enjoy your hard-earned retirement for a decade or more before collecting Social Security at 70. With prudent planning, you may find early retirement is within your grasp.

While retirement can be an exciting new chapter, it's important to approach it with care and planning. Before you hang up your working hat for good, take stock of the financial realities of this next phase of life. Think about how much your dream retirement will cost, what a comfortable lifestyle looks like for you, and what it will take to sustain that. Also, don’t forget the potential cost of housing and healthcare as you get older.

The life you want to lead in retirement and where you want to live will inform how much you need to save to get there. Do the math now before you set a firm retirement date. A little preparation will go a long way toward ensuring your retirement years are as fun and fulfilling as you imagine them to be. Explore Del Webb’s amenity-rich lifestyle to contribute to your fun and fulfilling retirement and discover the active adult community for you today.