Should You and Your Spouse Stagger Your Retirement?

| November 20, 2018
Higher Social Security checks, lower health-insurance costs and a longer-lasting nest egg are possible when spouses stagger their retirements
For many couples, retiring at the same time seems like the obvious thing to do. But from a financial perspective, new research indicates there are compelling reasons to retire months, if not years, apart.
Consider this:
  • A recent study found that extending one's working years by just two to five months, depending on your income, can offer the same payoff as saving an extra 1% annually over 30 years.
  • With one spouse earning a paycheck, you may be able to put off claiming Social Security benefits, which boosts the benefits by up to 8% per year for each year of delay between the ages of 62 and 70.
  • Women have the most to gain by working longer since their earnings peak after the age of 50. This will allow them to substantially enhance their Social Security payments since the Social Security formula looks at the highest 35 years of earnings. Of note, a man's earning power starts to decline after the age of 50.
  • A job may offer employer-sponsored health insurance which could eliminate the need to purchase additional health insurance coverage. 
  • For some people, their identity is tied to their work. Will they be happy in retirement? Will they be able to find interests that give them purpose?
Retirement is a major decision, make sure to weigh all the facts before taking the plunge. And, of course, speak with your financial advisor to make sure your decision will work for you. 

Peak Wealth Management is a full-service Registered Investment Advisor located in Plymouth, MI. We believe by providing education and guidance, we inspire our clients to make great decisions putting them on a path toward fulfillment and their own definition of true wealth.