4 Signs You're On Track for Retirement
Most people worry at least a little about whether they'll have enough money to be comfortable once they retire -- and they're right to be concerned; 66% of Americans have less than $50,000 in retirement savings, which is nowhere near enough to live on. Here's how you can tell if you're doing a better job of retirement planning than the average American.
Your age at retirement will have a major impact on your retirement finances, for several reasons. First, once you retire you'll stop saving and start spending the money in your retirement accounts. That means you've got to have enough in those accounts by that point to last you for the rest your life. Second, your age when claiming Social Security will determine how large your benefits are throughout your retirement. Retiring before full retirement age will apply a penalty to your Social Security benefits, while waiting until after full retirement age will pad your benefits checks with delayed retirement credits. And third, if you're fortunate enough to have a pension coming to you from your current employer, the amount you'll receive from that pension is based on how long you've worked for that company. In fact, most pensions require you to stay with your employer for a certain number of years to get anything at all. It's important to take all these factors into consideration when choosing your retirement date.
Source: Fool.com
