For those born in 1960 or later, Fidelity's 10x Rule is a standard rule of thumb for retirement planning: you should have 10x your yearly salary saved by age 67 — the full retirement age. Those wishing to retire five years early at age 62, however, should try to have fourteen times their wage saved by then.
One can also approximate a sustainable withdrawal rate from your savings using the 4% guideline. If you withdraw 4% in the first year and adjust your withdrawals in every year following inflation, this approach estimates your savings should last you at least 30 years.
For example, if you retired with $1 million in savings, your first year of retirement would draw out $40,000. Should the inflation rate be 3% in the second year, you would withdraw $41,200.
Retirees who are 62 years old could have access to Social Security, pensions or annuities, therefore lessening their requirement in personal savings than those retiring at ages 40 or 50. Claiming Social Security at 62, however, yields less than waiting until full retirement age or later.
If your estimated monthly benefit is $2,000 and your full retirement age is 67, for instance, accepting benefits at 62 might lower your payout by up to 30%. You would thus get only $1,400 per month instead.
EAST WEST HUNT