A 90% cogent article in The New York Times discusses the utter absence of any contact with reality in most Americans' retirement plans. The numbers do not come close to adding up. The article is here.
Here are the basics. This will help you think through your situation.
Let me begin with the obvious: I am 70 years old. You are reading an article written by a man who is eight years beyond early retirement, as determined by the Social Security Administration.
At age 62, an American who has paid into Social Security can decide to begin receiving checks from Social Security. The monthly check will be below what it would be if he waits until normal retirement age, which can be up to 67 years old. By retiring at 62, the retiree's monthly benefit is reduced by anywhere from 25% to 30%.
In addition to Gary North's Reality Check, a twice-weekly eletter, I have two profit-seeking websites:
www.GaryNorth.comwww.TeaPartyEconomist.com
My work day is probably longer than yours. I begin around 3 a.m., and I end at 8 p.m. I take a 20-minute nap in the afternoon.
The signs were everywhere.Why are people now acting as though they've been ripped off?Preparing for retirement was preached to everyone via every imaginable way but few took it seriously.The attractiveness of Social Security intensified as my generation edged toward retirement,but not because of the 40% estimate.Many considered it their eventual sole source of income.Personally speaking,I made big sacrifices through the years for the priveledge of retiring when I was 58.While those around me were living large I was conservative to a fault.Now they act as though they are victims.Social Security is not a life or death matter to me now but I'll get it at 62 if it's still there.
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