At Signature Financial Advisors, we understand that determining when you are ready to retire is a deeply personal decision that hinges on several important factors. Your estimated retirement duration, anticipated expenses, and available resources all play a crucial role in shaping your retirement strategy. With today’s increased life expectancies, individuals retiring at age 65 can expect, on average, to live another 20 years. However, many will live well beyond that milestone; for instance, 33% of women retiring at 65 are expected to reach age 90. To ensure your financial security, we recommend planning for a life expectancy of up to 100 years, unless family history suggest a longer time frame .
Social Security is a foundational component of retirement income. Your monthly benefit is determined by your income, work history, and the age at which you begin claiming benefits. The Social Security Administration provides estimates based on your earnings record, and these projections become more accurate as you approach retirement. It’s important to note that the age at which you start receiving benefits has a significant impact on your monthly payment. For example, someone eligible for $2,000 per month at age 67 could increase their benefit by $1,080 per month by waiting until age 70 to begin receiving payments. Delaying Social Security can be a powerful strategy for maximizing your retirement income.
In addition to Social Security, pension plans and personal savings are essential for building a strong financial foundation. Most people invest their retirement savings—whether in a 401(k), IRA, or personal investment account—to achieve higher returns than basic bank deposits. The right investment mix for retirement varies based on your individual needs, circumstances, and risk tolerance. At Signature Financial Advisors, we believe it is prudent to regularly test your portfolio’s performance.
Finally, we recognize that retirement readiness is not solely about finances. Your decision about when to retire also depends on your personal goals and what you hope to accomplish in this next chapter of life. Some individuals choose to work part-time during retirement, and the associated income and benefits can provide greater flexibility, potentially allowing for an earlier retirement than initially planned.
At Signature Financial Advisors, we are committed to helping you navigate the complexities of retirement planning—balancing financial security with your personal aspirations—to ensure a fulfilling and comfortable retirement.
The above material does not constitute accounting, legal, or tax advice, you should consult the appropriate professional to discuss your particular situation.
