Retirement planning is often focused on what you can do for yourself, but is this the best option for married couples? As a couple you likely both save together and spend together, making joint planning important, if not absolutely necessary.
Including your spouse in your retirement planning efforts can help you avoid pitfalls that result from single person planning. Even if you provide the sole income within your household, having support for your plan is priceless. You may not need to drag your spouse along with you to every financial advisor session, but there are a few major topics to discuss.
Planned Retirement Age
It is so easy to assume that your spouse will retire at the same age as you. You may end up surprised if that is not the plan that he or she has for themselves. A love or dedication to their career, a desire for more income, or one of a multitude of reasons can be behind differences in the desired retirement age. While you may think it won't bother you now, a few years of vacationing while your spouse must remain home working is often not very appealing. This conversation is a must-have for any married couple.
In The Event Of Death
It is imperative that there is a plan in place in the event of death of either partner. This becomes particularly important when one member of the household provides the majority of income. There is more involved than simply knowing your spouse will be taken care of because the money is there. Make sure you are both aware of the locations of necessary paperwork, contact numbers, and the general knowledge of how to gain access to the funds. Do not assume this is common knowledge and remember even the simplest tasks are complicated during a grieving process.
Finances And Investment Plans
Household finances can already be a difficult topic for many married couples, but retirement prep is one reason it may well be worth it to discuss again. If you discover differing views on investments and risk-taking, you need to make sure it will not interfere with your joint retirement plan. If your hard-earned savings are being unknowingly spent away on schemes and failed investments, you could be in for a rough surprise come retirement age. Both spouses should generally be aware of each other’s financial states as well as being on the same path to success during retirement. These issues can grow more problematic if ignored so it is always in the best interest to have a full discussion of expectations and plans.
As a married couple you have a shared responsibility and dedication to each other. Going at your retirement plan alone can create problems and miscalculations that can be devastating to your savings. While some spouses may be uninvolved, knowledge of your plan and process is still important. Avoid neglecting this aspect of the planning process to lower the risk of future problems. For financial planning services, contact BD Financial Concepts.
We are a professional financial services firm located in Sanford, Central Florida.