Updated
Updated · AOL · Oct 5
Couples Need $1.3 Million-$1.8 Million to Retire at 62, About $500,000 More Than at 65
Updated
Updated · AOL · Oct 5

Couples Need $1.3 Million-$1.8 Million to Retire at 62, About $500,000 More Than at 65

2 articles · Updated · AOL · Oct 5

Summary

  • $1.3 million to $1.8 million is the nest egg a typical couple needs to retire together at 62, with North Dakota near the low end and New Jersey around the high end.
  • About $500,000 more is needed than for retiring at 65 because savings must last longer and couples face pre-Medicare health insurance costs that add roughly $24,000 a year.
  • Social Security history shifts the target: two full-career earners may need about $1.1 million to $1.7 million, while one-earner couples can need $1.3 million to $1.9 million.
  • Just 11% of retired couples actually stopped working at the same time, and keeping one spouse employed can cut the savings goal by preserving employer health coverage, delaying Social Security and extending compounding.

Insights

If unexpected health issues force a sudden end to part-time work, how can single retirees survive without that crucial income buffer?
Are modern housing structures financially penalizing single retirees, and could co-living be the ultimate alternative to a million-dollar nest egg?
Could working a simple part-time job in retirement secretly trigger hidden Medicare penalties and higher taxes?