“I also have about $ 300,000 401 (k).” (Photo theme is a model.) – Getty Images/Stockphoto
I’m 57 years old and I want to retire next year. I will have two defined benefits of pensions that should earn almost $ 7,500 a month. I also have $ 300,000 401 (k). My wife has 403 (b), which is currently $ 650,000. Currently, the mortgage is $ 1,400 a month and the debt is very low. My health insurance premium during my employer’s supported plan will be $ 880 a month, which will be reduced to $ 567 a month when I reached 60. I say I can retire, my wife says no. She will also be 60 years old next year. Thoughts?
Ready to retire
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This is not a decision that should be made easily and (b) to be made without a financial advisor who passes through your property with forensic details. – Marketwatch illustration
This is not excluded: $ 7,500 per month is large. But if you retire next year, keep a fixed income for 30 years.
Your question is a few questions collected in one: You say that your two defined pension plans will be $ 7,500 a month, but how long? Do you pull 4% of those plans or less? How long do you expect to live? Are you in good health? Have you taken into account private health insurance until your Medicare is involved or will your wife continue to work and give you both employer -supported health insurance? Don’t you like your job? Could you work part -time? When will your mortgage be paid?
This is not a decision that should be made easily and (b) to be made without a financial advisor who passes through your property with forensic details. They ask you what retirement you imagine yourself: holidays, hobbies, income, etc. It’s a seductive and exciting perspective. Of course, everyone deserves certain downtime, even if not every American can afford to retire, but your wife both use caution. She is not trying to deny your wishes; She tries to make sure you both have a safe and comfortable financial future.
You can retire for $ 1 million to select a round number, but there is no guarantee that it will last for you for the rest of your life. Using a 4% rule-4% of your nest each year in 30 years-you would take $ 40,000. According to a recent Northwestern Mutual study, US adults will need averaging $ 1.46 million on average. The “magical number” of people on saving pensions increased by 53% of the $ 951,000 targeted Americans reported in 2020.
As you grow older, you may experience unexpected health events, and you should obviously make sure that you are completely banned from 65 years before you decide to retire early. According to the KFF, the average premium for a one -time health insurance was $ 8,951 a year, and the average contribution for family insurance was $ 25,572 a year in 2024. You may also want to think about long -term care insurance. Long -term care policy is more expensive, as older as possible; Aar says that a person waiting for 65 years to buy such a policy pays about $ 3,135 a year.
Don’t miss it: Alessandra Malito helps me retirement column
The Social Security Administration and AARP provide pension calculators who try to answer the question of whether you have enough money to retire. You can introduce your assets, expected pension costs, life expectancy assumptions and tax assessments. Longevity is a great unknown factor. According to SSA, on average, 65 -year -olds in the US, who are 65, can expect about 82 to live. The retirement calculators are also useful in the fact that they can encourage financially wise people to save more when they see what’s waiting, according to research.
If you retire at the age of 58, will you be able to detain claims for social security before you can maximize your benefits? Most people – 28.4% of men and 26.5% of women -, given the year when a person was born, seeks a full retirement age, which is between 65 and 67 years. Meanwhile, 8.4% of men and 9.3% of women are waiting for up to 70 years or later to use their benefits based on the Social Security Administration. Social security offers the amount of your benefits if you wait up to 70.
You get 100% of your social security benefits throughout the retirement age, which is 67 years old for everyone born in 1960. Or after that, you will get a smaller amount if you demand from 62 to a full retirement age at any time. If you wait up to 70 years, you will get about 8% more a year. Some advisers say it can find out at about the same way, whether you are starting to use your benefits 62 or 70 years – it all depends on how long you live. Given the ability to experience the benefits and benefits of survival spouse, this is a conversation that you and your wife can have together.
Research published by federal reserves and Boston University has recommended “Virtually all” employees aged 45 to 62 to wait for them to cause 65 years to draw their social security and more than 90% to stay until they are 70 people. Even if you postpone social security, you still need to register with Medicare at the age of 65. Working part -time work can be a compromise.
You gave yourself a year to decide. Use the time wisely to explore your future financial landscape.
Related: My wife asked for divorce after 21 years. She wants to buy a house with our savings, but promises to help pay my mortgage.
Previous Quentin fottrell columns:
My husband will inherit $ 180,000. I think we should invest money. He wants to pay his $ 168,000 mortgage. What’s right?
“I’m losing a loss”: My almost 10 -year -old guy calls his elderly parents as beneficiaries and gives them a power of attorney. Is I right to be upset?
“We don’t have any prior arrangement”: Will my wife be able to take my money if I transfer it to my retirement account?
