RETIREMENT - No We

Leaving the workforce at the same time – especially when you’re the same age or younger than your partner – could mean leaving a big chunk of money on the table.

According to the Canadian website Retire Happy, “While everyone wants to retire early, the fact is the average retirement age is about 62 for men and 58 for women. The average retirement age has been hovering around 60 for quite a few years.”

On average, women are paid less and are more likely to have their careers interrupted to have children or care for family members. This can add up to a smaller pension payout, which is calculated based on the 35 highest-earning years.

Studies have shown married women are often still in their peak earning years in their 50s and early 60s, while married men’s earnings begin to decline. Those final few years of a woman’s career can significantly boost her pension payout potential, which is important considering that, on average, women live longer than men, requiring their retirement funds to stretch further.

Of course, the decision of when to retire is not always solely motivated by maxing out retirement income. Many couples choose to retire in unison to pursue shared interests, such as traveling or sports activities. For some, the decision of when to retire comes earlier than expected, due to a downsizing at work or a health concern.

if you have the option to stagger your retirement dates from those of your partner, it can alleviate some of the challenges a dual retirement can initially pose.

Start out with one retirement, and then you won’t be tripping over each other being home together 24/7 together all at once.

if you want to discuss what options work best for you, reach out to your financial advisor.