What are some of the top challenges of retiring at age 63?


Quick Answer

Some of the top challenges of retiring at age 63 are financial issues and health insurance costs, according to Emily Brandon for U.S. News & World Report. The expected retirement age for most Americans has gone from age 63 in 2002 to age 66 in 2014.

Continue Reading

Full Answer

According to the results from a Gallup poll, most people who retired earlier than expected cited health problems as the cause, notes Brandon. Other reasons for retiring early include caring for a spouse or relative, company downsizing and changes in skills required to work. Unexpected layoffs and health problems cause a financial burden for retirees. People who successfully retire early usually have an inheritance or strict savings habits.

To retire at 63, Brandon suggests creating an emergency fund to avoid unexpected costs. Other factors that affect retirement include getting severance packages from employers, collecting unemployment and signing up for health insurance. Those who are under 65 are not eligible for Medicare and need to finance their own health insurance after retirement until they reach an eligible age.

For those born after 1960, the legal retirement age for Social Security benefits has slowly increased from 65 to 67, explains Kathleen Weldon for The Huffington Post. This means someone retiring at age 63 does not have Social Security benefits for the first few years of retirement.

Learn more about Financial Planning

Related Questions