• Question
  • Looking to early retirement at age 57

    Asked by someone from San Mateo, CA on 7/15/2016

    I live in San Mateo California, unemployed
    can I retire at age 57?

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  • Categories: When to Retire, Retirement Planning

Answers

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  • Good Morning,

    A person may "retire" at any age and retirement may look very different from person to person. Some people continue to work part-time, some people volunteer (work at jobs for which they do not receive compensation) and some people don't work at all.

    You may be asking about whether you can collect Social Security at 57. Unless there is some other reason that you may be eligible for benefits earlier than usual, you would not be able to start receiving Social Security benefits until you are 62. Because 62 is not your "full retirement age," taking the benefits early (earlier than your fill retirement age) will reduce your monthly social security benefit (the amount of the check.)

    If you're asking whether you can start withdrawing from a qualified retirement plan at 57, the answer is "probably." One of the exceptions to the early withdrawal penalty is that you have reached age 55 and have "separated from service." It sounds as though that has been a separation from service. This exception is not available for IRA withdrawals.

    If you're wondering about cash flow, a projection showing how long your money will last will be very helpful to you. The first step is to identify how much you're spending monthly now and if that number can be reduced, if necessary. Then, determine your monthly income and see if you have enough income to cover your expenses.

    I hope that this is helpful.

    Lynn

  • Login to rate this answer:   Answered on 7/20/2016
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.