My mother (63) has always planned to work till 65, mostly for health insurance until medicare & also because that's when her pension starts paying out. She works really long hours and is not in the best health generally. Gov Tech job - wfh - very sedentary- 90kyr. Recently she has suddenly fallen very ill and has been hospitalized. She has pneumonia and now they're saying bacterial meningitis also. It's a very difficult time right now. I'm really hoping she will take this as a sign to retire. She has been working way too hard and she doesn't really have a downshift option.
Unfortunately she and my father (69) did not save much at all , 100k net worth in 401k. My father receives 2500/mo combined from social security and pension . Their only debt is 10k student loan and 25k car loan. For the most part they have been able to stop all their frivolous spending that led them to this point.
The past four years they have lived with me and my wife and kids. Our home has an inlaw suite with separate kitchen and entrance. We have no intention to sell and are expecting my parents to live with us for the remainder of their lives.
They contribute 1,000 to our house hold for "rent" - which is inclusive of all utilities (water, electricity, Internet, indoor gym, garage parking) . We will never raise this number, and when one parent dies, we will potentially lower it.
My mom is eligible for a pension at 65 (2k) and should also get decent social security (1500?) . Retiring now would mean the eventual pension would be a few hundred less. Also the ss would be less of course if she took it now. We are in MCOL area (DFW suburbs)
Questions:
1. Does retiring now sound like it makes sense?
2. Their taxable income is going to be 120k this year (and was around that last year), everything I'm reading online indicates aca subsidies are based on taxable income (magi). Does this mean they won't get a decent subsidy if my mom retires now until 2026 ? Or is there any way to use my dad's 30kyr income (or maybe 45k if my mom takes SS now) instead? Since that would be their income as soon as she retires....
Unfortunately she and my father (69) did not save much at all , 100k net worth in 401k. My father receives 2500/mo combined from social security and pension . Their only debt is 10k student loan and 25k car loan. For the most part they have been able to stop all their frivolous spending that led them to this point.
The past four years they have lived with me and my wife and kids. Our home has an inlaw suite with separate kitchen and entrance. We have no intention to sell and are expecting my parents to live with us for the remainder of their lives.
They contribute 1,000 to our house hold for "rent" - which is inclusive of all utilities (water, electricity, Internet, indoor gym, garage parking) . We will never raise this number, and when one parent dies, we will potentially lower it.
My mom is eligible for a pension at 65 (2k) and should also get decent social security (1500?) . Retiring now would mean the eventual pension would be a few hundred less. Also the ss would be less of course if she took it now. We are in MCOL area (DFW suburbs)
Questions:
1. Does retiring now sound like it makes sense?
2. Their taxable income is going to be 120k this year (and was around that last year), everything I'm reading online indicates aca subsidies are based on taxable income (magi). Does this mean they won't get a decent subsidy if my mom retires now until 2026 ? Or is there any way to use my dad's 30kyr income (or maybe 45k if my mom takes SS now) instead? Since that would be their income as soon as she retires....
Statistics: Posted by Bogle_Bro — Fri Oct 18, 2024 11:29 pm — Replies 3 — Views 153