Scenario: You and your spouse are both 40 years old. You earn $75,000 and your spouse earns $45,000 per year. You estimate you can live comfortably on a minimum of 70% of your combined salaries in retirement, but hope to achieve more than that. You both plan to retire at age 62 and move to a warmer climate. You've changed jobs three times already in your career. With your first employer, you are vested in a defined benefit plan with a fixed monthly payment of $315 if you begin taking benefits at age 52. With your second employer, you had a 401(k) that you rolled into an IRA that is now valued at $25,000. With your current employer, you have a 401(k) that is valued at $15,000. Your spouse has a 401(k) that is currently worth $13,500. You assume you will both live 20 years beyond retirement. in retirement in today's Your current expectation is that together, you and your spouse, will require a minimum annual income of (dollars). For individuals born in 1950 or later, the full-benefit retirement age is years of age. If you and your spouse decide to retire prior to this age, your basic retirement benefit will be permanently by per year for each year that you retire early. This means that if you elect to retire before the full-benefit retirement age, you and your spouse will lose a total of of your expected Social Security benefits.
Use the table below to estimate your and your spouse's expected annual Social Security benefits.
Present annual earnings
$35,000 $45,000 $55,000 $75,000
Full-benefit annual retirement benefits $17,160 $20,400 $22,800 $27,240