For most couples, retiring at the same time is what they most prefer. Retiring at the same time allows couples to spend their golden years together. Usually, when couples retire separately, it’s because of health problems, job loss, a wide age gap or win real money online pokies. So, should you retire before your spouse? Let’s look into it.

Should You Retire Before Your Spouse?

Retiring separately is not totally a bad thing. In fact, it allows couples to ease into a new lifestyle slowly. As a result, financial and personal adjustment is much simpler.

When one spouse retires early, approaching the prime years for tax and retirement planning, it’s quite helpful. These years provide couples with more opportunities to solidify their retirement plans. Couples can take advantage of those years by doing the following:

  • Couples should agree on a strategy. Also, they need to plan their approach. They must decide whether they will take distributions from a retirement account. Furthermore, they should decide if they will live on one income and let their savings continue to grow.
  • Couples should lower the cost of health insurance. Employer-sponsored healthcare keeps health care costs low. One spouse may decide to stay employed so that they benefit from this. As a result, they won’t have to spend as much when it comes to medical bills.
  • One spouse may stay on the job so as to fund the couple’s retirement plan. A little contribution provides more flexibility in later retirement years.

However, it should be noted that retiring early comes at a cost. Actually, it doesn’t benefit your financial situation at all unless you won the biggest online casino jackpot. If one spouse retires early, there’s less time to accumulate more assets for that spouse.

Also, Social Security benefits are affected by retiring early. If the retiring spouse has less than 35 years of earned income, additional years will average $0. Obviously, this lowers the benefit amount.

Lastly, huge lifestyle changes have to be made when one spouse retires early. In fact, most couples struggle with adjusting to the new lifestyle. Actually, the retiring spouse may feel insecure about not bringing in any income or may become jealous of their spouse.

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