The article discusses key considerations that couples must address when planning for retirement, especially if one spouse has a lifetime pension. Decisions surrounding emergency funds, IRA investments, and budgeting for annual expenses are critical. While pensions can provide a considerable financial boost, couples must evaluate options for receiving these benefits—either in lump sums or monthly payments—and assess their risk tolerance. A Reddit case highlights a family's preparation, tracking their retirement portfolio valuation upward of $4.8 million, emphasizing that strategic planning can lead to comfortable retirement years.
Retirement decisions between spouses can range from how much to set aside in an emergency fund, what stocks to buy for an IRA account, to how much their annual expenses and discretionary spending should be budgeted for during their golden years.
Couples looking to retire within the next 10 years where at least one will have a lifetime pension will likely have a comfortable retirement ahead of them, but decisions they face will have a bearing on the degree of comfort.
Pensions often are offered in a lump sum or monthly payment lottery scenario. If there is no COLA, then the decision may boil down to risk tolerance, as the net amounts will be close to equivalent.
An annuity decision can significantly impact retirement comfort, as exemplified by a couple on track for a $4.8 million retirement portfolio and a substantial Social Security benefit.
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