If you don’t know your partner’s retirement plans, you’re likely on the path to a tumultuous journey. Consider whether you know their detailed retirement plan. Do you know the exact date they intend to retire? Do you have a clear understanding of how your financial situation will be managed? Retirement hinges on strategic planning, and if that’s not a shared effort with your spouse, then you’re neglecting a crucial part of your retirement formula.

Consider this scenario. Imagine if your partner says, “I talked it over with my family, and I’ve been preparing my own finances to retire next month!” and you were completely unaware they were going to do that. How might that change your finances, given that your household income is suddenly going to be reduced? How could you feasibly continue saving for your own retirement with less money coming in? Have you considered how this might affect your healthcare? These are challenging questions that would be tough to answer in a short amount of time. Your life is inextricably linked with your spouse, not excluding your finances. That’s why it’s crucial to prepare for retirement with your spouse.

Consider discussing these subjects with your partner now to avoid potential issues down the line:

• When do both of you intend to retire? Gaining insight into this can aid in understanding how your financial landscape may change in the near future.
• What place do you envision calling home post-retirement? For some people, the freedom from work opens up opportunities for relocation. Is this an option both of you would like to explore together?
• If you’re not planning to relocate, perhaps a smaller residence would interest you now that your children are independent. Is downsizing something you both want to consider?
• A crucial plan that requires careful consideration is deciding when to start receiving social security benefits and when your partner should do the same.
• Finally, have you thought about giving some of your wealth to your children or grandchildren, and if yes, then how much? It’s a topic that requires mutual understanding. If you have set a concrete plan for this aspect of your retirement, it will be easier to integrate it into your comprehensive retirement plan.

When it comes to planning for retirement as a couple, we’re only just beginning to delve into the intricacies. The earlier you initiate the process, the better your plans can be organized. If you’re seeking professional guidance to navigate you and your partner through the retirement journey, feel free to connect with one of our experts for a complimentary financial assessment today.