Want To Retire at 55, 60, 62, 65, 67 or 70? Ask Yourself These Questions First

(Image credit: Getty Images)

Choosing the right age to retire is crucial. Once you leave the workforce, you may not be able to return. If you decide to go back to work, you'll likely have to find a new job, possibly at a lower salary. That's why you need to be sure you're ready before you retire.

To help you figure out the right age for you, we put together a checklist of questions to ask yourself before retiring. The checklist covers everything from money to emotions and helps you prepare for the next chapter of your life, whether you're 55 or 70.

If you can answer yes to most of the questions, retirement, here you come! If not, it may mean you need to overhaul your plan. Either way, read on to see how prepared you are for retirement based on your age.

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor. Subscribe from just ~~$107.88~~ $24.99, plus get up to 4 Special Issues

CLICK FOR FREE ISSUE

https://cdn.mos.cms.futurecdn.net/flexiimages/y99mlvgqmn1763972420.png

Sign up for Kiplinger’s Free Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Retiring at 55? Ask yourself these questions

Retiring at 55 might seem too young. You can easily work another decade. Plus, you can’t collect Social Security until 62 at the earliest.

Nonetheless, millions of people strive to retire at 55 and don’t care if they have to do it without Social Security or Medicare (which doesn’t kick in until 65). They put greater value on life outside the office, even if it means downsizing their lifestyle.

If you're retiring at 55, your money needs to last longer than that of those retiring later. As a result, questions at this stage are focused on how you can make your money last, and include the following:

1. Will you work part-time or retire completely?
2. What income sources will you use to avoid penalties for withdrawing from retirement accounts early?
3. Are your savings fine-tuned for a long retirement?
4. Do you know how you’ll cover healthcare costs?
5. What will you do once you retire?

To learn more about preparing for retirement at 55, click here.

Retiring at 60? Ask yourself these questions

The average age for retirement is 62, but many people retire earlier. For some, they have no choice but to retire early due to health issues, job loss or a change in their family situation. For others, they are sick of working and are ready to start their next chapter. Either way, it's not uncommon to retire before Social Security and Medicare kick in.

But that creates gaps that need to be filled, which is the focus of retirement planning at this age, including some of these questions:

1. Do you have a handle on your expenses?
2. Do you have a way to fund retirement before Social Security kicks in?
3. How will you pay for health care?
4. What will you do with your free time?
5. Are you getting professional help?

To learn more about preparing for retirement at 60, click here.

Retiring at 62? Ask yourself these questions

If you want to retire at 62, join the crowd — the thought of so much freedom can be intoxicating. Even though many retirement planning experts recommend waiting until your full retirement age (FRA) to collect Social Security benefits, the average age to retire in America hovers around 62. Sure, it means reduced Social Security payments, but for countless Americans, it allows them to stop working and enjoy their life outside the office.

To determine if retiring at 62 is right for you, consider a few key factors, including your financial health, physical well-being and emotional preparedness. To get started, ask yourself these questions:

1. Do you know your numbers?
2. Is there a plan to put your money to work?
3. Do you have a grip on housing costs?
4. Have you planned for extras?
5. Do you know how you'll pay for health care?
6. Are you emotionally ready for retirement at 62?
7. Do you have a decumulation strategy in place?

To learn more about preparing for retirement at 62, click here.

Retiring at 65? Ask yourself these questions

More than four million Americans will turn 65 this year; meanwhile, another 4.1 million will reach that milestone in 2026, and 4.1 million more in 2027. Known as "peak 65," it's the period between 2024 and 2027 when millions of Americans turn 65.

While 65 isn’t the Social Security full retirement age for many people, it is when Medicare kicks in, which is why some choose it as their retirement age. Questions about strategizing are a big focus at 65, including these:

1. Do you know your sources of income?
2. Do you have a cash flow withdrawal strategy in place?
3. Do you know when you’ll claim Social Security benefits?
4. Have you considered the tax implications of your retirement income?
5. Can you visualize your retirement?
6. Can you hang on for two more years to 67, which is full retirement age for many?

To learn more about preparing for retirement at 65, click here.

Retiring at 67? Ask yourself these questions

You made it! You’ve reached 67, or are almost there. Age 67 is the full retirement age for tens of millions of Americans, when they can collect complete Social Security benefits and might feel psychologically ready to retire. By 67, Medicare has kicked in, you've hopefully saved a decent amount in your 401(k) and other retirement accounts, and you might be at peak earnings. All you need to do is pick a retirement date.

But just because you are 67 doesn’t mean you should retire. If you retire at 67, there is likely no turning back. It might be hard to return to your old job, and finding a similar one could prove difficult. That's why it's important to make sure you are ready by answering these questions:

1. Can you afford to stop working?
2. Are you ready to stop working?
3. Can your retirement portfolio handle market declines?
4. Would your quality of life improve with higher Social Security benefits?
5. What are you retiring to?

To learn more about preparing for retirement at 67, click here.

Retiring at 70? Ask yourself these questions

Retiring at 70 may seem like a foregone conclusion. At this point, you’ve maxed out Social Security, and you’re probably at your peak earnings potential. You’ve been working for over forty years and should be ready to take it easy.

Yet for many people, retiring at 70 is still an "if" rather than a "when." They may think they are ready, but when it comes time to retire, they keep pushing back the date.

When it comes to retiring at 70, you don’t have to worry about strategies for claiming Social Security since you can no longer collect an additional 8% per year for delaying. Nor do you have to worry about waiting for Medicare to kick in, since that occurs at 65. You do need to ask yourself some heavy questions, such as the following:

1. Are you financially capable of retiring?
2. Do you have to leave your job?
3. What’s your plan for your retirement free time?
4. Is there longevity in your family?
5. Is fear preventing you from retiring?
6. Are you set up for success in the home?

To learn more about preparing for retirement at 70, click here.

Remember, age is just a number; it's the preparation that matters

Whether you are 55 or 70, the key to a successful retirement is planning and preparation.

These questions are just a guideline, but they underscore the importance of making sure you have enough money saved, your healthcare is covered and you have a plan for how you’ll spend your time. All of which is important regardless of what age you choose to retire and embark on the next phase of your life.

Donna Fuscaldo is the retirement writer at Kiplinger.com. A writer and editor focused on retirement savings, planning, travel and lifestyle, Donna brings over two decades of experience working with publications including AARP, The Wall Street Journal, Forbes, Investopedia and HerMoney.