Most people want to know how they stack up to other people as they approach retirement, which is why people often ask about the average age most people decide to retire. We work with people across different states and regions, so we see a range of ages. In the latest episode of the Money Wisdom podcast, Jake Doser, CFP®, CPWA® and Nicholas J. Colantuono, CFP® share their personal experiences from the planning process and explain why comparisons don’t provide the right perspective for retirement.

As individuals near retirement age, the question of when to start planning becomes increasingly relevant. As Nick points out, many clients in the Boston area typically begin to seriously consider retirement around the age of 65. This is often influenced by factors such as the higher cost of living, which encourages people to work longer and save more before taking the plunge into retirement. That number skews slightly lower for our clients in Connecticut, but there’s still a common range for most people based on key ages.

One of those crucial ages is 59 and a half, the earliest point at which individuals can access their tax-deferred retirement accounts without incurring penalties. This age marks the beginning of a new phase where people start to engage in serious retirement planning, as they realize that they can finally access their hard-earned savings. The conversation also touches on Social Security, which becomes available at age 62. Many people hesitate to retire before they start receiving Social Security benefits because the comfort of guaranteed income is a significant factor in retirement decisions.

The next milestone age is Medicare at 65 and that’s a very significant one because of health insurance costs. Retiring before Medicare kicks in means having a plan for covering this expense out of pocket. It’s often more than people expect it to be. Then there’s full retirement age at 66 or 67 where income planning becomes pretty clear.

All of these different milestones can greatly influence one’s financial strategy, which is why you can’t compare yourself to others when it comes time to pick out a retirement date. Work with a team of professionals to create a customized plan to meet your needs so that you know exactly when you’ll be ready to transition to that next chapter.

Here’s what we discuss in this episode:

0:00 – Today’s question

1:05 – Boston clients

2:10 – Connecticut clients

3:17 – Different ages that matter

Join us for our next financial workshop to learn about these strategies and more. Text WORKSHOP to 800-757-0436 to reserve your spot today.