Ladies may have a good reason to continue working while leaving their husbands to tend the home. A recent study suggests that a woman on tap to
earn a lower Social Security payout than her husband can shore up her own benefit by continuing to work rather than retire at the same time he does.
This can be particularly beneficial if her husband is older by several years.
Since Social Security calculates benefits using the average of a worker’s 35 highest income years, retiring during higher earning years can be a detriment. In this scenario, if a woman keeps working another five years she may be able to erase five of her lowest earning years, yielding a higher benefit.
New research from Harvard University estimates that a woman who retires at age 70 instead of 62 can increase her “Social Security wealth”, on average, by 15 percent.1 This includes the inherent increases that accompany delayed benefits. Furthermore, her work earnings can mean the difference between boosting the overall household income and living on two retirement benefits, particularly if those benefits began before full retirement age. And when she does retire, their household income will be higher as well.
1Nicole Maestas. Harvard University and NBER. May 2016. “The Return to Work and Women’s Employment Decisions.” Accessed Sept. 14, 2016.
It can be difficult to make financial decisions without access to information. If you have questions or concerns about your current retirement strategy, feel free to contact us using the form below.
Strategic Wealth Designers, LLC is a Registered Investment Advisor in the states of Kentucky and Indiana. Matt Dicken, Dustin Stanley and Jordan Schwartz are Investment Advisory Representatives affiliated with Strategic Wealth Designers, LLC. The advisors may not transact business in states where they are not appropriately registered, excluded or exempted from registration. Individualized responses to persons that involve either the effecting of transaction in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption.
*Guarantees provided by insurance products are backed by the claims-paying ability of the issuing carrier.
The retirement kit is provided for informational purposes only. It is not intended to provide tax or legal advice. By requesting this report you may be provided with information regarding the purchase of insurance and investment products in the future.