Age 55 is becoming the “gateway” to retirement in American society. It’s a common age for people to cite as the age at which to retire early. It’s the age of choice for “55-plus” residential communities. And, it’s the age McDonald’s starts giving senior discounts on coffee.
From a wealth planning perspective, 55 is a good age at which to establish a comprehensive retirement plan. Why? Because by age 55, most people/couples understand their preferences fairly well. They can begin to formulate future family commitments, evaluate financial readiness and articulate a desired lifestyle that may/may not include a shift in residency. Highest income-producing years may still be ahead, but a topping-off point may be within sight.
All of these factors are important, but there’s an even more important reason to make age 55 your target for creating a comprehensive plan: you have time to adjust.