5 Retirement Planning Tips for Married Couples

When it comes to the subject of retirement, are you and your partner on the same page? If you, your spouse, or both are thinking about retirement, there are a few things you should consider as a couple. Read on for information about how to navigate your retirement planning as a couple.

Prepare for the road ahead

If you’re considering retirement, be sure to have a conversation with your partner about short term and long-term goals. Do you have a bucket list of vacation destinations or new hobbies you’d like to try? Do you plan to purchase a home together? It would also be helpful to discuss exactly when one or both of you plan to retire.

This is also the time to assess how much money you’ll need for future expenses such as college funds for children, continuing education for yourself, or expenses like home repairs. Once you’ve agreed on a number, work together to create a budget that works best for you.

Be open about your savings

As a couple considering retirement, communication is key, particularly in regard to your savings and 401(k) accounts. The amount you’ve saved can greatly affect your budget for retirement. Whether you have a joint savings account or individual accounts, it’s important to be transparent about how much you’ve managed to put away for your retirement so that you can budget for your future accordingly. Many couples find that they need a certain percentage of the monetary amount that they normally spent before retirement to maintain their lifestyles.

It can also be advantageous to share information about other accounts you may have together or separately, such as checking accounts and credit card accounts, so you’re aware of all of your financial options.

Name your beneficiaries

In addition to disclosing your finances with one another, you’ll also want to ensure that you’ve named beneficiaries for all your financial accounts, including your 401(k)s. This ensures that the transfer of funds to the appropriate party is as smooth as possible at the time of your death. Your beneficiary can be a person, trust, estate, or other organization. It’s important to keep your designated beneficiaries up to date to account for any life changes that may occur, such as marriages, births, adoptions, and untimely deaths.

Review your life insurance and extended care plans

As you and your partner continue to age, it’s important to consider your life insurance and extended care needs. Many surviving partners face hardships from the loss of a partner due to the loss of a social security check, pensions, and medical insurance. Setting up a life insurance plan can help to prevent these difficulties. Not only will you need to consider your life insurance options, but you’ll also need to plan for the possibility of extended care. Other friends or family members may not be able to care for you or hire full-time help so putting a plan in place will allow all parties involved to feel at ease.

Consider if retirement is the best choice

Even with all the planning, preparations, and savings, many couples discover that they need to keep working for a few more years to meet their future retirement needs. If you know that you want to retire but you’re nervous about whether you have enough, consider speaking with a financial advisor about your options.

This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. The information may not reflect the most current legal developments, may be changed without notice, and is not guaranteed to be complete, correct, or up to date.