I've just started using your Retirement Savings Planner 2010.1, couples edition. I input our basic info, data for each of the tabs, plus detailed investment info using the button. Still need to play with other numbers, but one thing is confusing me and I don't know if it's a bug, or just something we don't understand. As an example: My age = 53, retirement at 55. Hubby's age = 60, retirement at 62. Current data shows us fully funded through ages 89 and 96, respectively. That's with both of us working 2 more years.
If I change hubby's retirement age to 60 (ie. retires now, with no further income in the 2 years before I retire), our chart changes to show us fully funded through ages 91 and 98. This doesn't seem to make sense.... why would we have MORE money and be able to get by longer before hitting a shortfall if we bring in LESS money before retirement? All other numbers and data remains equal. Thanks for any help you can provide.
Heather K.
Hi
Because when you accelerate hubby's retirement age to 60... it BEGINS the
retirement analysis. With you still working I bet your job income is much
greater than the retirement income goal you entered... in which case the
"overage" amount gets saved during that two year period!!!
So essentially just changing his retirement back without considering your
expenses during those 2 years is an invalid excercise... you would need to
adjust your expenses... can do this in Special Expenses... use one line to
model the 2 year period and another to model the rest of retirement... then
set retirement income goal to zero...
Quick summary: If spouse retires, be careful of underestimated income needs during the intermediate period where one working spouse' job income is being applied to "Retirement income goal and expenses". If that job income is high, it is getting saved and that is not what you intended, but it's causing the picture to improve IF YOU ONLY change the retirement age and nothing else.