Retiring at Different Times? It’s More Common Than You Think

When you think about retirement, you probably picture both you and your partner clocking out for the last time and riding off into a well-earned sunset together. But the reality? Nearly 90% of couples don’t retire at the same time.

Surprised? You’re not alone.

But retiring at different times comes with its own unique challenges—both practical and financial. Let’s talk about what you should consider to keep your retirement plans smooth and your relationship stress-free.

Key Considerations for Couples Navigating Staggered Retirement

Retiring at different times comes with unique challenges, both practical and financial. Let’s start with some of the lifestyle adjustments you’ll want to consider. Imagine one of you heads off to work while the other is home, retired. It’s easy to picture the working partner saying, “Hey, can you grab groceries and cook dinner?” For some couples, this shift in household duties might feel natural. But for others, it can spark tension if responsibilities haven’t been clearly discussed. A little communication upfront can go a long way to avoiding frustration.

Health insurance is another big consideration. If one of you retires before age 65, you won’t qualify for Medicare just yet. So, what’s the plan to cover that gap? There are a few options. You could continue your current coverage through COBRA for up to 18 months, but that can be pricey. If your partner is still working, jumping onto their employer’s health plan might be a better fit. And of course, you can always explore ACA marketplace plans to find something reasonably priced.

Then there’s Social Security. Timing is everything when it comes to claiming those benefits. Many people are tempted to start collecting early, but that could mean leaving a lot of money on the table. Benefits grow every year you wait to claim them, all the way up to age 70. For most people, the sweet spot to start collecting is around your full retirement age—typically 67. But if you’re able to wait a bit longer, you’ll receive a bigger monthly benefit for life.

Finally, don’t overlook the tax implications of early withdrawals from retirement accounts. If you dip into your IRA or 401(k) too soon, you could face penalties and bump yourself into a higher tax bracket. Even after you reach retirement age, the way you structure withdrawals matters. Strategic planning can help you avoid paying more taxes than necessary, leaving more money in your pocket.

Retirement is a big life change—especially when you and your partner retire at different times. But with the right conversations and careful planning, you can make the transition smoother for both of you.

The Bottom Line: Communication and Planning Are Key

Staggered retirement isn’t just a financial shift—it’s a lifestyle change. Talking through these potential challenges ahead of time can help you both feel prepared.

Need help figuring out how to navigate health insurance, Social Security, or tax-efficient withdrawals? We’ve got your back. At Clarity Wealth, we specialize in helping couples make sense of their unique retirement journey so you can both enjoy this next chapter.