“My daughter is getting married next year and will try to get pregnant immediately.” (Photo subject is a model.) – MarketWatch photo illustration/iStockphoto
I am 59 years old. For the past four years, my income has been the highest it has ever been for me — close to six figures. I had many years (15) during which I did not work or earned a low income because I was raising a family. However, I have worked the minimum number of months required to qualify for Social Security. I also have a decent 401(k) and should be able to benefit from my husband’s Social Security. He plans to wait until Full Retirement Age, at which point he will receive the maximum benefit.
My daughter is getting married next year and plans to try to get pregnant immediately. She has asked whether I would be her babysitter when she returns to work, at least for the first year. I would be honored to do this, and she would pay me a small allowance to cover gas and other expenses, but it would be nowhere near my current income. I know I would need to figure out health insurance, which will be costly, but I think I could cover that and other expenses with savings.
If this arrangement fell apart after the first year, I could probably secure another job, although it would not be at my current income level. I have two questions. First, if I were to stop working at 61, how would that affect my Social Security earnings record? My Full Retirement Age is 67. Second, if I were to move money from a traditional 401(k) to a backdoor Roth IRA, would the tax payments have any effect on my Social Security record?
Future Grandma
See: My pension enables me to delay Social Security benefits. What if I want survivor benefits sooner?
These major life events coming up for you — your daughter’s wedding, eventually welcoming a tiny bundle of joy into the family, and all the beautiful moments in between — are magical. However, don’t get so caught up in the excitement that you forget the very crucial necessity of retirement planning. This is true in any situation, but especially when you’re considering an earlier-than-traditional retirement age after decades of sacrificing your earnings.
To answer your questions first: Social Security benefits are based on your earnings history. If you stop working at 61, your benefits will be calculated based on whatever your earnings record is up to that point. The Social Security Administration uses your highest 35 earning years to determine benefits, so if you are currently in your highest earning years, these additional years of work will increase your benefit. As for moving money from a traditional 401(k) to a Roth IRA, that would have no effect on your Social Security record, since it is not related to earned income. However, the conversion would generate a tax bill in the year the money is moved.
You also mentioned that your husband would receive the maximum benefit at his Full Retirement Age. I just want to clarify that Full Retirement Age is when an individual receives 100% of their calculated benefit, but the maximum benefit is actually achieved by delaying benefits until age 70. The Social Security Administration allows benefits to begin as early as age 62, which results in a reduced monthly payment. For the years between Full Retirement Age and age 70, however, the agency incentivizes delaying benefits by offering delayed retirement credits. I mention this only because you referenced a “maximum benefit.”
Now back to your reality.
For many, this stage of life is called the catch-up period for retirement savers. Like you experienced, many adults can’t save much for the future while they’re in the thick of raising a family. Some must allocate most — or even all — of their paychecks to immediate expenses, such as housing, utilities, education, and extras for the kids. Others make sacrifices, such as leaving the workforce to raise children or taking lower-paying jobs to juggle both work and family. Later in life, some workers, like you now, reach their peak earnings.
Before making any decision about early retirement, think carefully about how giving up your highest-paying job will affect your long-term financial well-being. Consider what your finances would look like if you continue working versus if you stop early to watch your grandchild.
I understand why your daughter would ask you to watch your future grandchild. Childcare is expensive, and quality care can be hard to find. It’s also thoughtful of her to offer payment, since not every family makes such arrangements — many simply assume grandparents will take on childcare. At the same time, leaving your job to provide full-time care, especially if it’s only for a year, means giving up significant potential earnings. This includes not just your salary, but also any investment growth you could earn from continued contributions to your retirement accounts.
Returning to the workforce in your mid- to late-60s can be challenging. Ageism is unfortunately common in hiring, and the stress of needing to work because your retirement savings fall short is very different from choosing to work for enjoyment.
Private health insurance can also be costly. If your husband’s job doesn’t cover you — or if he reaches 65 before you and enrolls in Medicare — you would need to cover your own premiums. That expense can quickly eat into your income or savings. If you’ve budgeted for it, great, but if not, keep it in mind. According to Kiplinger, the average monthly health-care premium for someone age 60 was $1,319 in 2025 and is estimated to be nearly $1,600 in 2026.
Time with your grandchild is meaningful, and it’s clear you would consider it an honor. If it matters that much to you, you’ll need to be meticulous with your finances. Sit down with your husband and analyze the numbers. Look at how much you’ve saved and how much you expect to spend each year in retirement. Factor in housing, utilities, groceries, entertainment, medical expenses, transportation, travel, and any other expected costs. Also include a buffer for unexpected expenses, such as roof repairs or car maintenance, so you don’t need to tap into retirement funds prematurely.
One useful rule of thumb is the 4% rule. In short: if you withdraw about 4% of your retirement savings in the first year and then adjust for inflation each year, your savings should last about 30 years. For example, if you have $1 million in retirement savings, the first year’s distribution would be $40,000. Retirees typically supplement these distributions with Social Security, a pension, or part-time work if they aren’t ready to leave the workforce entirely.
Perhaps you could arrange a part-time schedule with your daughter, continuing to work some days at your high-paying job while watching your grandchild on other days. This approach would let you maintain income, stay insured until Medicare, and reduce any childcare costs she would otherwise face.
This is your life, and you have options. You are not bound to this job, and you should pursue what matters to you. But before caring for others, ensure that you’ve secured your own financial future.
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