Retirement Planning/Retirement at 66
Not sure if this is the place for an opinion, but I'll see what comes of it. I'll retire this May at 66 with about 1700/month social security. My wife was born July 1951 and will only get about 600/month if she waits to the same age. I have mortgage and other expenses of about 2500/month. I have a 401K of about 110K. It sure looks like a part time job is in my future. Do you have any other quick suggestions without detailed analysis? Thanks.
First of all, check with Social Security, your wife me be able to collect a benefit based on your PIA (personal insurance amount) which is the figure that SS uses to calculate benefits. I believe she should be able to collect 50% of what your benefit is. So that would be about $850 instead of $600. If you were to turn your 401k into income, an immediate annuity would pay you about $600-650 per month. So when your wife is 66 if you collected $1700, the wife gets $850 and the annuity paid you $650, that would be $3200. If your expenses, are $2500, that doesn't leave you much left over not to mention you would have to factor in inflation. It looks like you may have to do something to earn more income or decrease your living expenses. You most likely won't be able to work forever. I would suggest you meet with an advisor who can help you make the right decision for your 401k funds. Figure out if you need income now or later and what financial product meets your needs the best. I hope this help. Best of luck!