Retirement planning inevitably brings up the question, when can I retire? Calculating your pension age gives you the opportunity to plan for the future in terms of saving money and making investments as you approach retirement age. Calculating your pension age will prepare you to plan for your future so you'll be ready to enjoy the freedom your golden years have to offer.
Read the details of your pension plan to determine your retirement age. Pension plans vary with regard to retirement age and when members may start receiving monthly retirement benefits. In many cases, individuals may begin to receive some sort of retirement benefit from their pension plan between the ages of 50 and 65, provided they are fully vested. Check your pension plan to see what the policy is regarding retirement age. As an example, assume that a pension plan gives benefits to people over 65.
Determine your current age plus months. When most people are asked how old they are, they simply say their age. When it comes to calculating your pension age, however, you need to know the months as well. For the example, John is 40 years and six months old.
Subtract the current age from the pension age. In the example, John can retire at 65, so the equation becomes the following:
65 - 40 years 6 months = 24 years 6 months.
If John needs to know his retirement date, he simply adds 24 years plus 6 months to the current date.