Retirement Planning Tips for Couples

Retirement planning can be a difficult and confusing process for couples. How can you best maximize your savings for the years ahead? By focusing on a few key areas, setting financial goals, and doing your research, you can find ways to enjoy retirement together.

Set Financial Goals

In retirement, educate yourself on your financial situation and investment strategy. This helps you prepare if one partner dies or cannot manage the finances. Collaborate to recognize and give importance to your financial aspirations. Are both of you expecting to retire simultaneously, or will one of you continue to work while the other retires sooner? What kind of retirement income are both partners hoping for? Have an honest discussion about financial expectations and prioritize what’s most important.

Discuss Total Cost of Care Healthcare

Healthcare costs are one of the most significant expenses to consider when planning retirement. Factor in the total cost of care for both of you. Are one or both of you expecting to need long-term care in the future? If so, what kind of costs will that involve? Researching the options for long-term care and understanding the associated costs can help you make better decisions together.

Discuss Where to Live

When deciding on a retirement destination, consider the most livable cities. What cities offer the best amenities, healthcare facilities, and quality of life? After all, the goal is to find not just a change of scenery but a place to retire that you and your partner will enjoy. Consider the financial aspects of your retirement destination, such as the cost of living and taxes.

Discuss When You Should Retire

Most couples try to retire around the same time, but this isn’t always possible. Financial needs should factor heavily into your decision. Projecting how much income you need from various sources is a good place to start. For example, if you want an annual income of $100,000 and plan on withdrawing 5% of your portfolio’s value annually, you may need roughly $2 million in retirement savings. Speak to afinancial planner for more specific details.

Invest for a Comfortable Retirement

When you invest your savings, the type of retirement account and assets can affect your lifestyle in retirement. Contributions to a traditional IRA come from pretax money, while those to a Roth IRA are post-tax. Often, retirees assume they need to be more conservative with their investments as they age, which can reduce long-term growth and jeopardize your retirement plan. You may need to explore stocks for higher-growth returns.

One option is a spousal IRA, which allows the working person to put money away for their other half in a tax-advantaged account. This type of retirement account can help grow your savings over time. Planning for a longer investment time horizon is key to avoiding running out of money in retirement. Your investments may need to grow well after you retire due to unforeseen expenses, inflation, and increased spending. You can use standard life expectancy tables as a guide, but it’s best to assume you will live longer than expected so your money lasts.

Choosing the Right Time to Start Receiving Social Security Benefits

You may be eligible for Social Security benefits and can choose when to start receiving them. Generally, the longer you delay, the more you’ll receive. Consult a financial adviser to optimize your strategy. Additionally, couples may qualify for spousal and survivor benefits, up to 50% or 100% of your benefit amount. Consider these options if you are the higher earner in the household.

Enjoy Retirement Together

Find ways to enjoy retirement together. Retirement should be an opportunity to explore new interests and activities and spend quality time with each other. Plan trips, take classes, and find ways to stay active and engaged. Make sure you both feel supported and appreciated during this time.

Planning for retirement can feel overwhelming for couples, but by engaging in effective communication and thorough preparation, you can jointly make optimal decisions to ensure a fulfilling and happy retirement. Setting financial goals and finding ways to enjoy retirement together are all important steps in the retirement planning process.

At Talon Wealth Management, we understand that planning retirement can be difficult and overwhelming. That’s why our team of financial professionals is here to help. Reach out to us today; together, we can begin working towards a future filled with excitement and possibilities.


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