Plan Your Path to Retirement

The earlier the better, but it's never too late to start. If you're in your 50s or 60s, focus on maximizing savings with catch-up contributions, reducing debt, and creating a clear picture of your retirement income sources.

Medicare eligibility begins at 65, regardless of when you retire. If you retire before 65, you'll need to arrange health coverage until Medicare begins. If you work past 65 with employer coverage, you may delay Medicare enrollment without penalty.

You can claim as early as 62 (with reduced benefits) or delay until 70 (for maximum benefits). The right age depends on your health, financial needs, and other income sources. Delaying increases your benefit by about 8% per year between full retirement age and 70.

A common guideline is to aim for 70-80% of your pre-retirement income. However, your specific needs depend on your lifestyle, healthcare costs, debts, and goals. Working with a financial advisor can help you create a personalized target.

An annuity is a financial product that provides guaranteed income, often for life. They can be useful for ensuring you don't outlive your savings. However, they vary widely in terms and fees. Consider whether you need guaranteed income beyond Social Security and pensions.

If retiring at 65 or older, enroll in Medicare during your Initial Enrollment Period. If you have employer coverage, you may qualify for a Special Enrollment Period when that coverage ends. Planning ahead prevents gaps in coverage and potential late penalties.