We Have $1.1 Million Saved. I'm 67, My Wife Is 62. Can I Finally Retire?

"We've saved over a million dollars…but are we really ready for me to retire?"

Here's a question we hear frequently from couples approaching retirement.

"I'm 67 and still working. My wife is 62 and retired a couple of years ago. Neither of us has started taking withdrawals from our retirement accounts yet, and she hasn't claimed Social Security. Together we've accumulated about $1.1 million. I'd like to retire now. Can we afford it?"

First, congratulations. Accumulating more than a million dollars for retirement doesn't happen by accident. It usually reflects decades of disciplined saving, wise financial decisions, and living within your means.

But whether you can retire today depends on much more than the balance on your statements.

The couple in this article and video is hypothetical and is used for illustration only. Your results will differ, and no outcome is guaranteed.

Retirement Isn't Just About Your Investments

Many people believe retirement begins the day they stop working. In reality, retirement is a series of financial decisions that often unfold over several years. In your case, you already have two important transitions:

• Your wife has already retired.
• You're still earning a paycheck.

Soon, you'll add another transition when you stop working. Later, you'll both decide when to begin Social Security. Then you'll determine how and when to begin drawing from your retirement savings. Each decision affects the others.

That's why retirement planning is less about finding a magic number and more about coordinating multiple income sources into one cohesive plan.

Is $1.1 Million Enough?

The honest answer is...it certainly can be. But no advisor should answer that question with a simple yes or no. Instead, we'd want to understand several important pieces of the puzzle.

How much income will you actually need?

Some couples spend far less in retirement than they did while working. Others spend more because they're traveling, serving missions, helping children or grandchildren, or pursuing hobbies they've waited decades to enjoy.

The amount you need each month matters more than your account balance by itself.

When should each spouse claim Social Security?

This may be one of the most valuable decisions you'll make. In your situation, you've already reached full retirement age, while your wife still has several years before reaching hers.

• Should you begin benefits immediately?
• Should she wait?
• Would delaying either benefit increase your lifetime household income?

These decisions can add up to hundreds of thousands of dollars over a long retirement, especially for married couples, though the outcome depends on your own benefits, health, and circumstances.

That's why we rarely look at Social Security in isolation. We evaluate it alongside pensions, retirement accounts, taxes, and future income needs as part of a comprehensive retirement income plan.

Which accounts should provide income first?

Many retirees assume they'll simply begin withdrawing proportionally from all of their accounts. That isn't always the most tax-efficient approach. The order in which you withdraw assets can influence:

• Lifetime taxes
• Required Minimum Distributions later in retirement
• Medicare premium surcharges
• The amount left for surviving spouses and heirs

Thoughtful distribution planning often creates opportunities that aren't obvious at first glance.

Getting North of $1 Million Doesn't Eliminate Uncertainty

One of the biggest surprises for new retirees is discovering that having enough money doesn't automatically create confidence. Questions still linger.

• How much can we safely spend?
• What happens during the next bear market?
• Should we take less income when markets decline?
• How do we keep up with inflation?
• Will one spouse outlive the other by many years?

Those questions aren't solved by reaching a certain portfolio value. They're solved with a retirement income plan.

That's Why We Focus on Income, Not Just Investments

At Peterson Wealth Advisors, we often tell clients that accumulating assets and distributing assets are two entirely different challenges. Most financial firms spend decades helping clients grow their portfolios.

Retirement requires answering a different question:

How do we convert those savings into an income stream that's designed to last the rest of your lives?

Our proprietary Perennial Income Model™ (PIM) was developed specifically for that challenge. Instead of treating your retirement savings as one large investment account, the Perennial Income Model organizes your assets into time-based segments that correspond with when you'll need to spend them. The goal is to create an inflation-adjusted stream of income while reducing the emotional decisions that can derail long-term success. Investments carry risk, including the possible loss of principal, and no plan can guarantee a result.

For couples retiring at different times, as in this example, that coordinated approach becomes especially valuable because every income decision affects the next one.

So...Can You Afford to Retire?

Based only on the information you've shared, it's certainly possible. Many couples have retired successfully with similar assets. Others have needed to work another year or make modest adjustments to their spending plans.

The determining factor isn't whether you have $1.1 million. It's whether those assets, together with Social Security and any other income sources, have been organized into a thoughtful retirement income strategy.

The Bottom Line

If you're nearing retirement and wondering whether now is the right time to leave work, don't focus solely on the size of your nest egg. A coordinated strategy for Social Security, retirement withdrawals, taxes, investments, and inflation can often provide more confidence than simply accumulating another $100,000.

After all, retirement isn't just about reaching the finish line of saving. It's about knowing how to make what you've saved support the life you've worked so hard to enjoy.

Ready to See If You're Ready to Retire?

If you're approaching retirement, or if one spouse has already retired while the other is still working, we'd be happy to help you evaluate your options.

Meet with one of our CERTIFIED FINANCIAL PLANNER™ professionals to review your retirement income strategy and see how the Perennial Income Model™ can help coordinate your investments, Social Security decisions, and retirement income into a plan designed to provide confidence for decades to come.

Schedule your complimentary Retirement Income Strategy Session or call 801-225-0000.

Disclosures

Peterson Wealth Advisors is a registered investment adviser. This article is for educational purposes only and should not be construed as investment, tax, or legal advice. The couple described is hypothetical and used for illustration only. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. The Perennial Income Model™ provides a strategy and framework for retirement income planning but cannot guarantee investment performance or specific financial outcomes. Please consult with a qualified financial advisor and tax professional before implementing any investment or retirement strategy.