Should You Retire at the Same Time As Your Spouse?
If you're thinking about retiring with your spouse, you're probably wondering if it's a good idea to do so simultaneously. Many couples have similar thoughts, and, in fact, one in four couples quit their jobs within a year of each other. On the other hand, retirement is a decision that should be carefully considered. Here are some things to think about while deciding whether or not to retire with your spouse at the same time.
You won't be eligible for Medicare in the United States until you're 65 years old. If you plan to retire before that age, ensure you have a plan to cover your medical expenses. You may be able to use your spouse's employer-sponsored healthcare plan if you retire early and your spouse continues to work.
You'll need private insurance if you both retire before age 65. Even if one partner is eligible for Medicare when they retire, the other must wait until they are 65 to receive benefits. In either of these cases, it may be preferable for one partner to work until you're both eligible for Medicare to save money on living expenses.
The amount of your social security payments is another aspect of retirement. Your payout amounts will increase if you wait until you're between the ages of 66 and 70 to retire. It may be easier to pay for living expenses if you or your spouse wants to work until you reach that age range. This will also determine how much money you and your spouse have put into retirement funds.
It's critical that you and your spouse talk about the type of retirement lifestyle you want. Are you planning to downsize to a smaller home? Will you spend your free time traveling around the world or learning a new skill? Do you wish to work part-time or volunteer in the future? What kinds of things do you want to perform together daily?
These questions should help you figure out how much money you'll need to live your dream life. Compare this to the amount of money you have set up for retirement. Would you have enough money to retire together now if you wanted to? Will you be able to get medical treatment and receive social security payments? If not, it may be preferable for one of you to retire first, while the other continues to work to save money and meet healthcare costs.
Do You Want to Retire?
If you or your spouse are considering retiring, be sure you're prepared. Even if your partner decides to retire, you may want to continue working if you enjoy your career. It will be easier to support a pleasant living when one partner is bringing in a stable salary as long as one of you is still healthy and able to work.
It may also be tough to re-enter the workforce after retiring. Finding full-time job at an older age is difficult, especially if you've been out of the workforce for a year or longer.
A financial specialist can help you determine out what the best course of action is for your unique situation, whether you're thinking about retiring years apart or at the same time as your spouse.
*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2022 Advisor Websites.