Dec 17, 2019
Lester and Robyn have good Social
Security benefits, Pension benefits and 2 million dollars saved for
retirement, but they are still scared to retire! This episode
uncovers the reason why this couple is still nervous to make the
jump into retirement, despite their good financial position, and
explores the options to plan for concerns. Learn how continuing to
work may actually be hurting you rather than helping you!
Case Study of Lester and Robyn. Who are they?
Lester (63.9) works for $80k a year. Robyn (68.3) is retired and
has some health concerns. Their biggest concern of retiring is
healthcare.
Robyn’s SS: $1800/month at full retirement age, $2200/month right
now, or she could wait until 70 for $2600/month
Lester’s SS: $2555/month at 66, right now it’s $2200/month
Robyn’s Spousal Benefit: $1300/month
Robyn’s Pension: $3000/month
Robyn works with Matt Gibson for Medicare.
Lester works with Chris Miller for private health insurance (not
qualified for Medicare).
Option 1: Both take their own
benefit : $4700/month
Option 2: Robyn could do Restricted Spousal Benefit and get half of
Lester’s benefit and Lester could file for his own.
Option 3: Robyn could file for her own and Lester could wait until
70 and get almost $4000/month. Survivor benefit is greater.
Either Robyn or Lester would have to survive until late 90’s or
100’s to make Option 3 beat Option 2.
Option 2 beats Option 1 if either of the two lives until their
early 70’s.
Lester’s SS benefit will be affected by his income if he keeps
working. Robyn can file for the Restricted Spousal Benefit until
Lester is retired. Thus, Option 2 is not possible unless Lester
retires.
They are missing out on $45,000/yr of SS due to Lester’s $80,000/yr
income.
Not all of SS income is taxed. A lot of pension is taxed, but
Lester and Robyn’s tax situation will still be much better when
retired.
Effects of income on healthcare costs are discussed.
Overall, Lester and Robyn could earn $89,000/yr during
retirement.
What things are keeping you from retirement?
Is it a financial or emotional concern?
Zacc addresses some common concerns.