Retirement planning is a good way to avoid financial struggles later in life. However, pension planning is very different for individuals than it is for those who are married. If you fall into the previous camp, here are a few things you should know.
first You Will Not Benefit From A Spouse's Savings
Couples have a benefit on the retirement savings front because they pool resources when their careers end and enjoy each other's good habits. When you are single, you only have your own savings to trust, so if you are back in this respect, it is critical that you drive up while you can.
Currently, you can contribute up to $ 1
Imagine you are 57 and want to retire in 10 years. Let's also assume you are saving $ 200,000 and are currently contributing $ 400 a month to a retirement plan. If your savings generate an average annual 7% return, you get $ 460,000 when you retire. However, if you are able to sock away $ 600 a month over the next 10 years instead, you will retire with $ 493,000, provided the same return. And the extra $ 33,000 could easily turn into an extra $ 100 a month in retirement income over a 30-year period.
2nd Just consider your own needs when submitting Social Security
When you are married, it is important to consider your spouse's needs when submitting Social Security. For example, spousal and survival benefits are based on benefits that are eligible for beneficiaries, so those who need to look after a spouse may have no choice but to delay benefits to increase them.
When you are single, but you only have your personal needs to account for, then you are free to claim social security at your convenience. For example, if you have saved nicely in your IRA or 401 (k) and want to submit services a little early (ie before full retirement age), you may be welcome to do so without having to worry about it by reducing your Benefits you also reduce a spouse's benefits.
When you are single, you can also base your Social Security decision on your own health. In general, the better your health is retiring, the more it pays benefits and increases them in the process, as you will most likely come out with a larger payout in your lifetime. On the other hand, if your health is not good, filing early generally gives meaning. And as a single person approaching retirement, you do not need to factor a spouse's health into that decision.
3rd You may need more long-term care insurance
Married seniors who retire can often fall back on each other to make sure they get injured or get sick. When you are single, you may not have the same built-in caregiver, so your need for long-term care insurance is enhanced.
Long-term care insurance can help cover the often astronomical costs of home care or home care, and it can cover home care if you need it. The best time to apply for a policy is during the 50's and the good news is that if you are seeking alone, you do not run the risk of a spouse's ill health increasing your premium cost or even worse risking see your cover request denied.
Retiring single means you have to call your own shots during your golden years. Just make sure you plan appropriately so you can enjoy retirement as you always wanted.