and collect early Social Security benefits at age 60 . They will receive $ 16,500 at that time . For conservative planning purposes , the Mayfields do not plan to use interest and / or dividends as an income source when planning insurance needs . Full retirement benefits , at age 66 , are $ 23,580 . In addition to Peter ’ s life insurance , they are willing to use all of their retirement , investments , and monetary assets to meet insurance needs . Disability Insurance Peter ’ s employer provides both short- and long-term disability coverage . His short-term coverage pays 100 % of his earned income for the first six months of disability . There is no wait period for this coverage . Peter ’ s long-term coverage has a six-month wait period and pays a benefit equal to 60 % of earned income until age 65 . All premiums , for both policies , are employer paid . If Peter were to become disabled , they would not continue to save for other goals . In case of disability : Total household expenses in the event of death or disability are $ 85,000 . When calculating life insurance needs , the Mayfields are willing to use all their combined retirement savings to offset insurance needs . The Mayfields assume that in the event of a possible disability neither will be eligible for Social Security disability benefits . For life insurance planning purposes only , they would like to replace $ 85,000 per year , in today ’ s dollars , for retirement . Long-term Care Insurance The Mayfields do not currently have long-term care insurance . Retirement Information and Planning Issues The following information should be used when evaluating the Mayfields ’ current retirement planning situation : Peter does not have a defined benefit plan at this time . Retirement age for reduced Social Security benefits is age 62 ; they plan to retire and take benefits at