Retirement Age Calculator

The Full Retirement Age Is Increasing

Full retirement age (also called “normal retirement age”) had been 65 for many years. However, beginning with people born in 1938 or later, that age gradually increases until it reaches 67 for people born after 1959.

The 1983 Social Security Amendments included a provision forraising the full retirement age beginning with people born in 1938 or later. The Congress cited improvements in the health of older people and increases in average life expectancy as primary reasons for increasing the normal retirement age.

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Annuities Explained: The Choices And Red Flags

Listen to the Story: Morning Edition
by NPR STAFF

March 20, 2013 3:06 AM ET

Companies are licking their chops at the prospect of a wave of baby boomers leaving their jobs with trillions of dollars in 401(k)s and other savings accounts, so older Americans may find themselves bombarded with ads for annuities. And younger boomers, too, may be targeted, since many are helping their parentswith investment decisions.

Annuities are a $200-billion-a-year business for life insurance companies and financial institutions that sell them. They are a sort of private pension that people can buy for themselves to create regular income for after they retire. They are tax-deferred mutual-fund-like investments, there are no annual contribution limits, contributions can be made in a lump sum or over time, and the payouts can be immediate or deferred.

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10 Steps to Get You Ready for Retirement

Start planning now for your ideal retirement
by Donna Fuscaldo, AARP, Updated June 2012

A happy and fulfilling retirement means different things to different people. For you, it may mean transitioning from a full-time career into meaningful part-time work. Or perhaps you envision yourself spending more time with family, starting a garden or making regular visits to the golf course. Once you determine what will give you peace of mind in retirement, it’s important to know how you can get there financially. We’ll help you get started with some simple (and fun) steps.

Step 1: Define Your Retirement
You probably have some idea of how you’d like to spend retirement. Here’s where you write your objectives down, listing the most important goals first. For now, don’t focus on budget. Focus on ideas, and be as specific as you can. For example, instead of “travel,” list “trips to the lake” or “walking tours of foreign countries.” Instead of “stay involved in my community,” write down “volunteer with kids one day a week.”

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What are the different types of annuities?

There are two basic types of annuities: deferred and immediate.

With a deferred annuity, your money is invested for a period of time until you are ready to begin taking withdrawals, typically in retirement.

If you opt for an immediate annuity you begin to receive payments soon after you make your initial investment. For example, you might consider purchasing an immediate annuity as you approach retirement age.

The deferred annuity accumulates money while the immediate annuity pays out. Deferred annuities can also be converted into immediate annuities when the owner wants to start collecting payments.

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