Preparing for Retirement: Three Key Questions Every Couple Should Discuss

When planning for retirement, it’s easy to focus solely on the financial aspects. However, it’s equally important to envision what life will look like during those years.

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Before making any plans, couples should openly discuss their retirement visions. A unified outlook serves as a guiding star in your planning process. As you communicate, consider these three critical questions:

1. What is Your Ideal Retirement Age?

Determining when you want to retire is essential for effective planning. Establishing a timeline gives context to your savings progress and reveals how much more you need to save. For instance, retiring in your 50s requires a different strategy than planning for your late 60s.

Your retirement age also affects your financial strategy. Social Security retirement benefits can begin as early as age 62, but the age at which you claim these benefits can significantly impact the amount you receive. Consider your work history, health status, and personal goals to decide the right retirement age for both you and your spouse.

2. Are You Financially Prepared?

After settling on a retirement age, assess your current financial status to ascertain if you’re on track for your goal. Fidelity suggests a general guideline: aim to save ten times your salary by age 67. This benchmark assumes you’ll maintain your lifestyle in retirement. Adjust this number based on your specific retirement expectations.

Are you saving enough? Fidelity recommends that those investing at least 50% of their savings in stocks should target specific milestones:

• 1x salary by age 30
• 3x salary by age 40
• 6x salary by age 50
• 8x salary by age 60

Remember, it’s okay if you feel behind. The first step in improving your situation is understanding where you stand now. Consider consulting a financial advisor to help create a tailored plan with your spouse’s needs in mind.

Image source: Getty Images.

3. What is Your Preferred Living Situation?

Don’t overlook the significance of location in your retirement plans. Many retirees have dreams of relocating to a warmer climate or downsizing to a less crowded area. Others may want to embrace a nomadic lifestyle, traveling across the country in a recreational vehicle.

Each choice has financial implications for your retirement budget. Ensure that your plans for relocation are financially feasible. Research the cost of living, housing prices, and taxes in your desired area to avoid unexpected expenses once you retire.

Engage in dialogue with your spouse about your aspirations and conduct thorough research to adjust your retirement strategy as necessary. This preparation can prevent surprises that might disrupt your plans once you leave the workforce.

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