Do you know when it will be a good idea to retire from the workforce? How much money do you have saved for your retirement? How much money will you earn after you do retire? Then again, what kind of life do you want to enjoy after you do retire? Are you willing to create a new way of living for what might be the rest of your life? Are you looking forward to taking that, so called, vacation of a lifetime? These are just a few of the questions that you must answer for yourself because we both know that someday we will be too old to work or our health could fail to a degree when it is impossible to work for a living.
For those of you who desire to work for as long as you can you are well aware of the fact that you will have more money added to your retirement accounts. employer pension plans, IRAs, 401Ks and the amount that is paid into your Social Security account. It is true that if you wait until you are 67 your Social Security check will be as big as it can be. Yes, you could retire at 65 or 62 but your Social Security benefits will be a whole lot less, the least being when you begin to collect Social Security checks after you reach the age of 62.
If so, you will need other types of income in which to supplement those Social Security payments each month. Keep in mind that you do not have to file an income tax return if your yearly earned income is less than $25,000 per year. If you earn more than that amount your Social Security payments will be reduced by one dollar for every two dollars above that base taxable amount.
It would be truly a shame if your retirement income amount is less than you need to live a healthy and an active life that provides happiness to you. Therefore, it is wise to determine what your living expenses will be during future years. If you will receive a total income of $1,000 or less each month you are considered to be living on the poverty level and you better believe that you will need every penny of that money. Those of you who will receive about $2,000 each month can live in reasonable comfort and still not have to pay Federal Income Taxes on the money earned. Then again, you might want to move to a community or State or Country where your monthly living expenses will be a whole lot less.
You are making plans for a whole new life after those days of going to work each workday and maybe be married and have to raise children and do all of those other things that are associated with family life. Without a single doubt, your new life is just for you and your loved one for as long as you are both alive. How you spend your golden years truly is for you and your loved one to decide, and may you be as happy as you can be.