Retirement Decision Lab · Answers
Straight answers to the retirement questions people ask most.
How much is enough, when to claim Social Security, how to cover health care before and after Medicare, whether to keep earning, where to live, at home or abroad, and what your retirement will look like. Every answer leads with the answer, shows its sources, and says when it was last checked.
You asked:
Decision 1 · Week 1 · Wed Nov 4
Can you afford to retire?
- How much money do I need to retire?There is no single number. Your number is the gap between what you spend each month and what comes in without working, carried over the years you need it to last.
- How long will my retirement savings last?For a rough count, divide your savings by what you take out each year. Then adjust for inflation and returns. Most people never run even the rough count.
- When should I take Social Security?You can claim as early as 62, get your full benefit at full retirement age (67 if you were born in 1960 or later), and earn a larger check for each year you wait, up to age 70.
- Is my Social Security taxable?Part of it can be. If half your benefits plus all your other income is above $25,000 (single) or $32,000 (married filing jointly), up to 50% of your benefits can be taxed, and up to 85% at higher incomes.
- What is my full retirement age for Social Security?It is 67 if you were born in 1960 or later. It is 66 if you were born from 1943 to 1954, and it rises by two months per birth year for people born 1955 to 1959.
- How much does Social Security go down if I claim at 62?If your full retirement age is 67, claiming at 62 pays 70% of your full benefit, a 30% cut that lasts for life. A spouse benefit claimed at 62 drops to 32.5% of the worker's full amount instead of 50%.
- How much more Social Security do I get if I wait until 70?For anyone born in 1943 or later, the benefit grows 8% for each full year you delay past full retirement age. If your full retirement age is 67, waiting to 70 pays about 124% of your full benefit, for life.
- How do spousal Social Security benefits work?A spouse can get up to half of the worker's full-retirement-age benefit. It is cut if claimed before the spouse's own full retirement age, and SSA pays the spouse's own benefit first, topped up to the higher spouse amount.
- What happens to Social Security when a spouse dies?The surviving spouse can receive up to 100% of the deceased spouse's benefit at full retirement age, or as early as 60 at a reduced 71.5%. The survivor gets one check, not two: the larger of their own or the survivor benefit.
- Will Social Security run out?No, but under the 2026 Trustees Report the retirement trust fund reserves run out in late 2032. After that, incoming payroll taxes would cover about 78% of scheduled benefits unless Congress acts.
- What is the earliest age I can retire?There is no minimum age to stop working. The ages that matter are when money and coverage open up: 55 for a 401(k) from the job you leave, 59 1/2 for penalty-free IRA withdrawals, 62 for Social Security, and 65 for Medicare.
- Can I collect Social Security and a pension at the same time?Yes. Since the Social Security Fairness Act, a pension from work where you did not pay Social Security tax no longer reduces your Social Security or spouse benefits. The change covers benefits payable from January 2024 on.
- How much will health care cost in retirement?Fidelity's 2026 estimate is $185,500 in after-tax savings for one 65-year-old on original Medicare, before long-term care. The 2026 Medicare Part B premium alone is $202.90 a month, with a $283 annual deductible.
- How do I get health insurance if I retire before 65?The main options are COBRA, a Marketplace plan from HealthCare.gov, a spouse's employer plan, or employer retiree coverage, until Medicare starts at 65. Losing job coverage opens a Marketplace sign-up window from 60 days before to 60 days after it ends.
- When do I sign up for Medicare, and what happens if I'm late?Your Initial Enrollment Period runs 7 months, from 3 months before the month you turn 65 to 3 months after. Sign up late without qualifying coverage and Part B costs 10% more for each full year you waited, for life.
- What is IRMAA and will it raise my Medicare premiums?IRMAA is a surcharge on Medicare Part B and Part D premiums for higher incomes. For 2026 it starts above $109,000 of modified adjusted gross income for single filers and $218,000 for joint filers, usually based on your 2024 tax return.
- How do I estimate what I will spend in retirement?Start from what you actually spend now, from 12 months of statements, then split it into essential and flexible costs. Remove work costs, add health care, taxes and irregular bills, and you have a baseline to test.
- What are required minimum distributions and when do they start?Required minimum distributions are yearly withdrawals the IRS makes you take from traditional IRAs and most workplace plans. They start at 73 for most people retiring now and at 75 for people born in 1960 or later. Roth IRAs have none while the owner is alive.
- How does inflation affect my retirement?Inflation shrinks what each dollar buys, and retirement can last 30 years. At 3% a year, prices nearly double in 20 years. Social Security adjusts every year (2.8% for 2026), but fixed pensions, annuities and savings do not adjust on their own.
- Can I retire with a mortgage or other debt?Yes, many people do. Treat each payment as fixed spending your income must cover, then compare paying it off against keeping it: the loan's interest rate, what your savings earn, the tax cost of withdrawing, and how much cash you keep on hand.
- What should I check before accepting an early retirement buyout or severance?Check the tax on the lump sum, how you will cover health insurance until Medicare, what the offer does to your pension, whether your state allows unemployment benefits, and your legal time to decide. If you are 40+ and it waives age claims, you get at least 21 days to consider and 7 to revoke.
- Should I take my pension as a lump sum or monthly payments?It depends on how long you and your spouse may live, your other guaranteed income, and whether you can manage a large sum. Monthly payments last for life and are usually insured by the PBGC. A lump sum gives control but moves the investment and longevity risk to you.
- What happens to my budget if the dollar drops where I live?If your income is in dollars and your bills are in another currency, a weaker dollar cuts what your income buys every month. Social Security does not adjust for exchange rates.
- Does Social Security keep up with costs if I live abroad?Only partly. The yearly cost-of-living adjustment (COLA) raises benefits by a percentage based on US inflation: 2.8% for 2026. It is not adjusted for prices or exchange rates where you live.
Decision 2 · Week 2 · Wed Nov 11
Should you stop earning?
- Can I work and collect Social Security at the same time?Yes. Before full retirement age, Social Security holds back some benefits if you earn more than a yearly limit. From the month you reach full retirement age, there is no limit.
- What do you lose when you stop working, besides the paycheck?Structure, a reason to get up, a network that brings opportunities, and in the US, employer health coverage before Medicare starts at 65.
- How can I earn income after 60?The most dependable income after 60 usually comes from what you already know: consulting, teaching, part-time work in your field, or a small business built on a skill people already pay for.
- Does working longer increase my Social Security?Often, yes. Your benefit is based on your highest 35 years of earnings, so a new year that beats a low or zero year raises it. Separately, waiting to claim past full retirement age adds 8% a year until 70.
- Can I go part-time instead of fully retiring?Often, yes, if your employer allows it. Phased retirement means cutting hours while some retirement income starts. If you claim Social Security before full retirement age, the 2026 earnings test withholds $1 for every $2 you earn over $24,480.
- How does self-employment income affect my Social Security and taxes after 60?You owe 15.3% self-employment tax once net earnings reach $400, even while collecting Social Security. Those earnings can raise your benefit, and if you claimed before full retirement age, they count toward the 2026 earnings test.
- Can I keep contributing to an IRA or 401(k) after I retire?To an IRA, yes, at any age, as long as you or your spouse have earned income. A 401(k) only takes contributions from pay at the employer that sponsors it, so once you leave that job, your contributions stop.
- What is the difference between retiring from a job and retiring from income?Retiring from a job means leaving a specific employer or role. Retiring from income means stopping all earning. You can do the first without the second, and even small earnings change how long savings last.
Decision 3 · Week 3 · Wed Nov 18
Where does your money work hardest?
- Should I downsize my home in retirement?It depends on four numbers: the equity you free up, what the sale and move cost, the tax on any gain (up to $500,000 can be excluded on a joint return if you meet the 2-of-5-year test), and how much lower your carrying costs will be.
- Which states don't tax Social Security?For tax year 2026, 42 states do not tax Social Security benefits. Eight still can: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont, and most of those exempt many retirees by age or income.
- How do I compare states for retirement?Score each state on your own numbers: tax on your kind of retirement income, property and sales tax, housing cost, health care access, distance from family, and climate risk. A state that wins on one line can lose on the total.
- Is it better to rent or own in retirement?Neither is better in general. Owning gives stable costs if the home is paid off but ties up equity and leaves you with taxes, insurance, and repairs. Renting gives flexibility and frees equity, but rent can rise every year.
- What does aging in place require?A home you can move around safely, help with daily tasks when you need it, and a plan to pay for that help. Medicare does not pay for long-term personal care, and in 2025 in-home help had a national median cost of $35 an hour.
- Can I get Social Security if I retire abroad?In most countries, yes. US citizens can keep receiving Social Security retirement benefits while living abroad. Payments are barred in Cuba and North Korea and restricted in a few other countries.
- Can I retire abroad on Social Security alone?In some countries, yes. SSA reports the average retired worker's check at about $2,000 a month in early 2026. That clears the retirement-visa income minimum in some countries and falls short in others.
- Which countries have retirement visas, and how much income do they require?Many countries offer a residence visa for retirees with a steady pension. The income bar varies widely: about $1,000 a month in Panama and Costa Rica, and over $4,000 in Mexico.
- How do I get health insurance if I retire abroad?Medicare generally does not pay for care outside the US, so retirees abroad use the local public system where residents can join, local private insurance, an international health plan, or a mix.
- Does Medicare cover me if I live abroad?Generally no. Medicare does not pay for care outside the US except in a few narrow emergency and border situations, so retirees abroad need another way to pay for care where they live.
- How do I judge whether a country is safe to retire in?Start with the US State Department travel advisory, which rates every country from Level 1 (exercise normal precautions) to Level 4 (do not travel) and often names specific regions. Then judge the city and neighborhood where you would actually live.
- Does the US have a Social Security agreement with the country I'm moving to?The US has Social Security agreements, called totalization agreements, with 31 countries. They prevent paying into two systems at once and can help fill gaps for people who worked in both countries.
- Do I still pay US taxes if I retire abroad?Yes. US citizens file US returns under the same rules wherever they live, and are taxed on worldwide income.
- Do I have to report foreign bank accounts?Yes, once they are large enough. If your foreign accounts together top $10,000 at any time in the year, you file an FBAR (FinCEN 114), due April 15 with an automatic extension to October 15.
- What happens to my IRA or 401(k) if I move abroad?The accounts and their tax rules move with you, but your broker may not. Some US firms limit what you can buy, or restrict accounts, once you have a foreign address.
- Can my foreign spouse get my Social Security benefits?Possibly, but a non-citizen spouse living abroad generally has to have lived in the US for at least five years to receive spousal or survivor benefits on your record, unless an exception applies.
- Is it cheaper to retire abroad?Often, yes. But cost of living is one line. The better question is where your income buys the most total value: housing, health care, safety, currency stability, taxes, and the people you want near you.
- How do I compare places to retire?Put every place through the same short list: what your money buys, what health care you can reach, how safe and stable it is, how taxes treat you, what daily life and climate are like, and whether you can belong there.
- How do I move money abroad without losing it to fees?Compare the amount that arrives, not the fee. The exchange rate a provider gives you can cost more than the fee it advertises.
Country spotlight: Colombia
- Can I get Social Security if I live in Colombia?Yes. A US citizen can receive Social Security retirement benefits while living in Colombia, either into a US bank account or by direct deposit to a Colombian bank.
- Can a US retiree join Colombia's health system?Yes. Foreigners with a Colombian foreigner ID (cédula de extranjería) can enroll in the national health system through an EPS, in the contributory or subsidized regime depending on their ability to pay.
- What visa can a US retiree get in Colombia?Most use the Migrant (M) visa for pensioners. Cancillería says it requires a pension of at least three times Colombia's monthly minimum wage: about COP 5.25 million a month in 2026.
- Do I pay taxes in Colombia if I retire there?If you spend more than 183 days in Colombia within any 365-day period, Colombia treats you as a tax resident. You still file US taxes too, because the US taxes citizens wherever they live.
- Is it safe to retire in Colombia?It depends on where in Colombia. The US State Department rates the country Level 3, Reconsider Travel, and marks several regions Level 4, Do Not Travel. Most retirees live in specific city neighborhoods the national rating cannot describe.
Decision 4 · Week 4 · Wed Dec 2
What will your retirement look like?
- How do I make a retirement plan I will actually follow?Write down four decisions with numbers attached: when you stop working, how much income you keep, where you live, and what your monthly life costs. If you can't state the plan in a few sentences, it will be hard to follow.
- Do I need a financial advisor to retire?It depends on what you need. A financial advisor can choose and manage investments and plan taxes. Deciding when, whether and where to retire is a different job, and it is yours.
- How will I pay for long-term care?Mostly from your own income and savings, long-term care insurance if you hold a policy, or Medicaid once your income and assets fall under your state's limits. Medicare does not pay for long-term custodial care.
- What documents do I need before I retire?Four core documents: a will, a durable financial power of attorney, an advance directive for health care, and current beneficiary forms on every retirement account and policy. The beneficiary forms often matter most, because they control those accounts, not your will.
- How do I find purpose after I retire?Purpose after work usually comes from three things you have to rebuild on purpose: a weekly structure, a way to contribute that someone counts on, and regular contact with people. Losing social connection carries health risks comparable to smoking.
- What should I do in my first year of retirement?Track what you actually spend, confirm health coverage has no gap, set up withholding or estimated tax payments on your new income, lock in your Medicare dates, and test whether your daily routine works before making big changes like a move.
- How do couples decide on retirement when they disagree?Separate the facts from the preferences, run each person's version of retirement with the same numbers, plan the gap between two retirement dates, and test what happens to the survivor. Most disagreements shrink once both plans are priced.
Cohort 01 · Enrollment Oct 11 to Oct 23
About the Retirement Decision Lab
- What is the Retirement Decision Lab?A live, four-week working lab for Americans 55 and older deciding when, whether and where to retire, at home or abroad. Four decisions, one 90-minute session each, worked on your own numbers.
- Is the Retirement Decision Lab only for people moving abroad?No. Week 3 compares places, including where you live now. Finishing the Lab and deciding to stay put is a good outcome.
- What if I miss a live session of the Lab?Every session is recorded. You get the replay and the worksheet, and you can bring your questions to the next session.
- Can I get a refund from the Retirement Decision Lab?No. All enrollments are final. If you can't attend this cohort, your seat moves to any future cohort at no charge.
- Is the Retirement Decision Lab financial advice?No. Todd Allyn is an educator, not a financial advisor. The Lab teaches decision integrity: a method for making big decisions deliberately and applying it to your own situation.
Work this out with your own numbers.
The Retirement Decision Lab works through your retirement decisions and the rest of your retirement decisions live, on your real income and costs. Waitlist members hear first.
How these answers are made
Built from the questions people actually ask, and kept current.
01 · Ask
Your questions first
Every question typed here is logged. The ones we can't answer yet become next month's answers.
02 · Source
Primary sources
Figures come from SSA, Medicare, the IRS and official government pages, linked on every answer.
03 · Date
Checked and dated
Each answer shows when its facts were checked and when they will be checked again.
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