Retirement is One Thing that Married Couples Should Do Separately

Married couples do a lot of things together, including purchasing life insurance policies, going on vacation, buying homes and more. However, retirement isn’t one of the things that couples should do at the same time. It can have a significant impact on the household budget, and that’s why it is best when couples choose to stagger their retirement.

The Emotional Effect

First and foremost, before even considering all of the financial implications of retirement, it is important to understand the effect it can have emotionally. Many people have established senses of identity through their employers, and giving up a career that they’ve had for a number of years can really take a toll. Retirees often need some time to reestablish themselves in the world through hobbies, groups and the like. Couples who retire at the same time are faced with these issues together, and this means that they won’t be able to support each other to the best of their abilities.

Financial Implications

For many married couples, it is best for the primary breadwinner to continue working for about five years after the retirement age of 65. This has two primary effects on retirement savings. First, considering that someone earns an average of $50,000 per year during these five years and places 15% of that income in his or her retirement account, this means that an additional $7500 a year for five years or $37,500. Lastly, that retirement income won’t be touched for the entire five years. This means that the couple will have more money to live on annually once they have both retired.

Health Insurance

If one individual – or perhaps even both – has healthcare that is provided through his or her employer, then there are even more savings to be realized by waiting another five years to retire. One of these individuals won’t be required to purchase insurance that is supplemental to Medicare, and chances are that this individual will also have a life insurance policy integrated into their benefits package. By waiting five years to take over these expenses, thousands of dollars can be saved. After retirement, affordable policies are available at http://www.cheapinsurancefl.com/types-of-insurance/. With just a bit of information, you can get a comprehensive quote for all of your insurance needs.

Existing Obligations

While many people manage to pay off their mortgages, cars and other major expenses prior to retirement, there are an equal number of people who do not. In fact, it is becoming increasingly common to find people who have been retired for as many as five years and who are still making monthly mortgage payments. In this case, it may be in your best interest to see about having the remainder of your loan refinanced so that monthly payments are smaller. Of course, if you can afford the payments as they are, then this is acceptable as well since your loan will be repaid more quickly.

Overall, retirement is a very important phase in life and one that kicks off what are known by many as their best years. Traveling, socializing, and all-around fun should be the focus of these years, and there is no better way for married couples to do that than to stagger their retirement.