After the major lifetime milestone of retirement, knowing where you are getting your income can be daunting, scary, and a bit fleeting. Retirement is supposed to be a time of relaxation and contentment, but lack of preparation can cause just the opposite. You might be expecting long sunny days full of palm trees and mimosas while you kick your feet up and listen to the wind sing. Without a means of earning and saving money you might eventually find yourself scraping pennies from the gutter, boiling ramen for dinner and opting out of cable TV just so you can afford to keep your electricity on. Just because you are retired does not mean you no longer have to practice financial and fiscal responsibility. Use this list of 9 important sources of retirement income to gauge how prepared you are and develop a plan for the day that you can finally throw in the labor towel.
1) Social Security
If you feel comfortable retiring at an early age, then by all means go through with it— more power to you. Your life may gain a fresh start a whole lot sooner than most, but it is important to understand that when it comes to Social Security, the longer you wait to retire the better your monthly payments will be. Nearly every American is expected to receive Social Security income upon retirement via the Social Security Administration, but the current full retirement benefit age is 66 for citizens of the United States born between the years 1943 and 1954, but it is anticipated to increase to the age of 67 for those who were born in 1960 and after. Individuals can begin receiving Social Security disbursements, given that they have paid into the Social Security Administration for at least ten years, at the age of 62. If your spouse is deceased, then you may be eligible to begin receiving benefits at the age of 60.
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