Retirement is an important topic that couples should have open discussions about. Retirement is a life changing event. So, it’s important for you and your spouse to start exploring what you both are expecting retirement to be.
Keeping Social Security in Perspective
When entering into retirement, spouses need to understand how Social Security works since the program offers special options for them. You may wish to consider claiming Social Security benefits early under the spousal benefit. Married individuals can claim a spousal benefit at their full retirement age – which equals the higher of the claiming spouse’s worker benefit or one half of the other spouse’s Social Security benefit. The claiming spouse, who can continue to work, can switch to their own retired worker benefit at a later date. Delaying your Social Security benefit will provide a guaranteed increase to it until you reach age 70 and, working longer also means the possibility of increasing your retirement savings.
50%: chance of one spouse surviving to age 92*
Keep Medicare in Perspective
Medicare is not a family plan. Three months before your 65th birthday, you will need to enroll into Medicare Part A (hospital insurance) and your spouse will need to do the same three months before he/she attains age 65. If you and your spouse are covered under an employer sponsored group health insurance and prescription drug plan, you can delay enrolling into Medicare Part B (doctor care insurance) and Part D (prescription drug coverage). Medicare Parts B and D are optional and have monthly premium payments. There are lifetime penalties that permanently increase the premiums above normal levels if you fail to enroll within each part’s enrollment period after employer health coverage has ended. Plus, it’s important to know that there are deductibles and other criteria that you and your spouse must individually meet before Medicare will cover the medical bill.
25%: chance of one spouse surviving to age 97*
Creating Your Plan Today
Here are some ways that you and your spouse can prepare for retirement today:
• Candidly talk with your spouse (and also your children) about retirement and what it may mean to you, to your finances, and to your overall lifestyle.
• Work with a financial professional to fully explore your options for developing an income plan for retirement.
• Understand how Social Security and Medicare work and what your benefits will be during retirement. Go to www.SocialSecurity.gov for more information about these two entitlement programs.
• Compare your retirement income and your spouse’s retirement income with the total amount of your expenses – necessary expenses and comfort-living expenses – to see if you have a retirement income gap.
• Follow a distribution/withdrawal plan by accessing pools of assets at certain points in time during retirement. This can help you lengthen the life of your assets, gain the potential benefit of compounding growth and systematically increase your retirement income when you need it most.
• Consider purchasing financial products that can provide guaranteed payments for life or for the life of the surviving spouse, and that can provide protection for unexpected events.
Speak with Your Financial Professional
In addition to other sources of income that you may receive during your retirement years, having a guaranteed source of lifetime income for you and your spouse may give you the confidence and ability to enjoy retirement the way that it should be enjoyed – doing the things you love without the worry of outliving your money. So, speak with your financial professional today about the benefits of owning an annuity.
*Source: Annuity 2000 Mortality Table; Society of Actuaries. Figures assume a couple both age 65 and both in good health.
This material is for educational purposes only. This information in not legal, investment, tax or actuarial advice and it should not be relied on as the basis to purchase a variable annuity or implement a retirement strategy. Please consult your legal, investment, tax and actuarial advisors for information that is specific to your situation. Variable annuities are long-term investment vehicles that involve certain risks, including possible loss of the principal amount invested. The investment return and principal value may fluctuate so that the investment, when redeemed, may be worth more or less than the original cost. Withdrawals affect the variable annuity’s death benefit, cash surrender value and any living benefit. Variable annuities and their underlying variable investment options are sold by prospectus only. Prospectuses contain important information, including fees and expenses. You should read the prospectus carefully before investing or sending money. You should consider the investment objectives, risks, fees and charges of the investment company carefully before investing. The prospectus contains this and other important information. A prospectus may be obtained by calling 800.221.3253. To download a contract or fund prospectus, please visit www.Guardianlife.com.
Withdrawals of taxable amounts from a variable or fixed deferred annuity will be subject to ordinary income tax and possible mandatory federal income tax withholding. If withdrawals are taken prior to age 59½, a 10% IRS penalty may also apply. Withdrawals may also be subject to a contingent deferred sales charge.All guarantees are backed exclusively by the strength and claims-paying ability of The Guardian Insurance & Annuity Company, Inc. (GIAC). Variable annuities, fixed annuity and immediate annuity are issued by GIAC, a Delaware corporation. Variable annuities are distributed by Guardian Investor Services LLC (GIS). Both GIAC and GIS are wholly owned subsidiaries of The Guardian Life Insurance Company of America, 7 Hanover Square, New York, NY 10004. GIS is a member: FINRA, SIPC
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2014-14042 Exp. 10/2016