Three Thoughts on Retirement Finances New City, New York

These are common questions discussed when planning retirements: Social Security, women and retirement, and couples adjusting to retirement together.

While every article about when to start taking Social Security benefits focuses on delaying as long as possible, until age 70, to maximize the monthly payment you receive, there are a few exceptions. As discussed in this article from Financial Planning, “The 1 reason not to delay Social Security,” people who are in poor health or have received a terminal diagnosis have no need to delay.

While the benefit will be less if they file early, the greater number of individual payments will help offset the smaller benefit amount.

There are three ways that women can plan for a better retirement. Women should not rely solely on their spouses when planning for retirement. Instead, they should more directly participate in how they’ll secure their senior years. That’s because many of them are likely to live longer than their partners, according to an article from MarketWatch. Women should calculate the amount of income they anticipate receiving in retirement and consider other income streams.

In addition, they can talk about their estate plans with their spouses and family members and look for alternative income sources. One example is an immediate annuity. In the right circumstances, they can be a terrific strategy to improve one’s retirement prospects.

Remember that despite not having a 401(k), individuals can still save for retirement. Workers who don’t have the option of a workplace retirement plan, should ask their employer to set up one on the basis of incentives that the company will receive.

These workers can also look into opening a health savings account and an individual retirement account, preferably a Roth IRA, which offers tax-free growth on savings and penalty-free early withdrawals.

They also can choose to switch their status to a 1099 from a W-2 employee to establish a SEP IRA.

Finally, living together in retirement can be difficult for couples who are used to having work as a diversion. To overcome the obstacles, couples should talk about retirement and be honest about their expectations, rules, and disappointments. They should also find a common ground, if they have different interests. There’s nothing wrong with wives and husbands having separate interests or even separate friends, as long as they balance their time apart with quality time together.

A healthy and fulfilling retirement has many moving parts, from finances to recreational pursuits. Advance planning for all aspects will make it a more rewarding chapter of your life.

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