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My husband is 57 years old and I want him to retire or partially retire. His biggest concern is healthcare. I had metastatic breast cancer 13 years ago and I am still in remission. He has had a partial knee replacement. So, understandably, he is reluctant to retire. There are few other health issues that are hereditary in both our families. That is where the anxiety lies.
He currently is working at an automotive factory. He is completely burned out, physically and emotionally. He works a third shift, and he can’t set his circadian rhythm. I also worry about the long-term effects of him not sleeping well.
We paid our house off 22 years ago. We own our vehicles. We have no credit card debt. Our property taxes are low. Our household budget is $1,000 to $2,000 a month. I work part time.
Our financial portfolio has roughly $300,000. He has a pension with $600,000. He has a 401(k) with $250,000. We have a life insurance annuity. And we have over $150,000 in savings.
My question is: Can we retire now, even though the economic outlook is bleak? And, with seen and unseen health issues, is it safer to continue working and not lose our health insurance?
Dear reader,
You describe a scenario many Americans experience, and you’re not alone to worry about healthcare or wonder about your future retirement.
Having financial portfolios, retirement accounts, pensions and a life insurance annuity are great assets to help you remain secure in your old age, but you may want to hold off on using them as long as you can. I understand your husband is burned out, and that you’re worried about his well-being and health from working so much, but are there alternative solutions you can consider?
I will start by saying: I am not a financial planner, nor do I have all of your financial information in front of me. For the most personal advice, I strongly encourage you to find a qualified financial planner who will work in your best interest. Here are a few questions to ask if you decide to find one.
Health insurance is one of the best benefits an employer can offer, and not everyone has that advantage. Medicare doesn’t become available for most Americans until age 65, which would leave your husband (and you, if you’re not yet 65) with a gap in years until then. There are options should you leave the workforce, such as private insurance, but it can be expensive, especially when there are pre-existing conditions involved.
This doesn’t mean people should stay in a job that’s draining them of all of their joy, energy and drive, of course. If your husband is mentally and emotionally drained, and is suffering some physical ailments as well, ask yourselves if another job would be worthwhile. Could you both look for other employment opportunities he may feel happier in? If he’s thriving in a new job that also happens to offer health insurance, he may not mind working longer, and you may not have to worry about his physical, mental and emotional well-being anymore. I’m not suggesting this is an easy task — the job search itself can be exhausting — but it’s worth considering.
You mentioned you work part time. If he was unable to find a job that offered health insurance, could you? There are many opportunities out in the world for you both to explore.
Your household seems in order. You paid off your home and car bills, you have no debt and you both have saved and accrued retirement assets. That’s excellent. Don’t lose sight of the big picture, though. Keep track of your everyday finances, try to earmark a portion of your savings specifically for healthcare and map out what you expect to spend in retirement. You can make an account on the Social Security Administration’s website and get an estimate of your monthly payments when you become eligible to receive those. When you run the numbers for your retirement budget, be conservative and include a scenario where you get a portion or none of the Social Security benefit, just so you’re not relying too heavily on anything you don’t already have.
Fidelity Investments estimates a couple retiring this year can expect to spend $315,000 in healthcare alone during their retirements. But that’s just one ballpark figure. There’s no one figure or calculation a person can use to know what they’ll be spending in retirement, or how long their money will last. There are what can be millions of possibilities in what happens in the decades that make up this chapter, including health or emergency situations. If you’re able to keep working, and can find a job opportunity you both enjoy, you’ll be able to delay when you start withdrawing your retirement money, so that it can be preserved and even continue to grow. This is a potential best-case scenario.
Also, take a hard look at your expectations for long-term care, such as how you’ll pay for it or if you anticipate any family members will help you in your old age. You mentioned medical concerns, so this should be top of mind. Long-term care is expensive, whether it’s conducted at home or in a skilled nursing facility. That Fidelity estimate did not include long-term care. Families sometimes wait too long to have conversations on long-term care, or they don’t have these talks at all, which can make an already difficult time even more challenging.
If you and your husband can’t take it any longer, then talk deeply and often about your finances, and consider consulting a qualified financial professional who can work through your options to maximize your retirement security.
Take care of yourself. I wish you the best.
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Have a question about your own retirement savings? Email us at HelpMeRetire@marketwatch.com
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