‘She doesn’t pay into social security but I currently pay her through my business’: Planning my wife’s retirement options. Am I missing something?

"Hi Help Me Retire,"

Hey there! So, my wife is a teacher and she’s got Calsters in California. We’ve got a meeting coming up with the financial advisor from her school district, and we’re both in our late 30s with her having almost 20 years in the district. I’m on a mission to figure out her retirement options because she’s gonna have a bunch of years under her belt by the time she’s ready to kick back and relax. Oh, and just a heads up, she doesn’t chip in to social security but I’m currently paying her through my business.

Any of you savvy folks out there have any tips on what we should be asking about when it comes to her retirement? Like, when should she pull the trigger, how should we plan for it, and what kind of options are out there for us to explore?

Catch you later!

– Retirement Rockstar

Response from HELP ME RETIRE:
Hello There,

Dear Concerned Individual,

I understand your desire to plan ahead for your wife’s retirement and ensure that she is financially secure after dedicating years to her teaching career. Given that she doesn’t pay into Social Security and has a substantial tenure with the school district, it’s essential to explore all retirement options available through Calsters in California.

When meeting with the financial advisor from her school district, consider discussing the specifics of her pension plan, retirement benefits, and potential options for retirement timing. It may be beneficial to inquire about any additional retirement savings vehicles that could complement her Calsters benefits and provide a more comprehensive retirement plan.

Furthermore, discussing potential scenarios for early retirement versus continued service, as well as weighing the advantages of delayed retirement for increased benefits, could help in making informed decisions. Exploring strategies for maximizing retirement income and minimizing tax implications as retirement approaches is also crucial in the planning process.

Ultimately, taking a realistic and practical approach to retirement planning by seeking professional advice and considering various retirement options will help ensure a secure and comfortable retirement for your wife. By addressing these key considerations and actively planning for the future, you can make informed decisions that align with your wife’s retirement goals.

Best regards,
HELP ME RETIRE