Most workers assume they will decide when to retire. Sometimes, however, an employer suggests it in the form of an early retirement (a.k.a. “buyout”) offer. An early retirement incentive plans offer may or may not be voluntary. If it seems likely that employees will lose their jobs anyway with less generous terms (e.g., a specific department is being targeted), taking a buyout is typically advised (Wollan 2002). (more…)

By some estimates, the personal savings rate in America has dropped to as low as 1 percent of income in recent years. This is down from approximately 8 percent in 1980, 5 percent in 1993, and 2.2 percent in 1999, and it is a frightening statistic. We save half as much as the Europeans and one-third as much as the Japanese. Not only is the trend bad in relative terms, in absolute terms, it means most people today will have to either work longer to achieve their retirement goals or sacrifice quality of life during retirement. Some will have to do both. (more…)

Still other decisions must be made about pension plans. The retirement age must be decided, and consideration must be given to provisions for advantages of early retirement and the resulting adjustment of benefits. Employees by law may work beyond age 65 until they have 10 years of participation in the plan.

When a retirement plan provides that a participant may take his benefits in the form of an annuity, (more…)

If you have plan to spend your retirement time outside US, there are some factors to consider due to country-specific restrictions, changes in national banking regulations, and changes to work like in a foreign country. You may also consider if it might affect your benefits, and whether your benefits may be taxable. If you plan to retire outside the United States, you may be affected as you benefit from social security benefits abroad. (more…)

So now you are planning your retirement thoroughly. You are sure that you still get your income to maintain your retirement lifestyle.

Here’s a rough breakdown of where your retirement income will likely come from when you retire: (more…)

The lower age boundary defining “older worker” seems to depend on the context. Much of the retirement literature uses age 65 and older to define this category, a choice that reflects the salience of age 65 in previously enforced policies of mandatory retirement and entitlement for full Social Security benefits, as well as the general usage of the 18-to-64 age range in defining the “prime age” workforce. Within this context, “older worker” referred to someone whose continued attachment to the labor force ran counter to the normative pattern of retirement; by working beyond the “normal” retirement age of 65, these workers were considered categorically different from those who eschewed the option of “early” retirement. (more…)

You may have a general idea of how much income you expect to receive after you quit working, but to be on the safe side, you ought to know exactly what this amount will be. For example, how much retirement income will you receive from each of the following sources: (more…)

A number of factors may result in your finding part-time rather than full-time work during your later years. One factor to keep in mind is that you can only earn a specified amount each month and still receive your social security benefits. Therefore, unless you decide to forego your social security benefits you will of necessity be limited in the amount you can earn. Of course, after age 72 you can earn as much as you want and still receive your social security benefits payments. (more…)

It’s remarkable how pervasive the relatively recent notion of retirement has become. Retirement as we now know it didn’t exist prior to the 1930s. Social Security was developed and promoted by President Franklin D. Roosevelt and his New Dealers as a way to convince older workers to retire in order to open up jobs for young people during the Great Depression. Since then Social Security benefits have been expanded dramatically. (more…)

To qualify for Social Security benefits, you must have worked a certain number of years. Your eligibility is measured in credits. If you were born after 1929, you must accumulate forty credits or work for ten years to qualify. You earn one credit for each quarter of the year you work.

You can begin to receive benefits as early as age 62, (more…)