Summary of this article
Couples planning to retire together should synchronise finances to maximise benefits.
They should have separate shared and individual goals, and adjust contributions based on age and income gaps.
Non-working spouses should also build a retirement corpus.
Planning retirement together with a spouse can make it easier for couples to make better use of their money and financial resources. If you are one of those couples who are going to retire together in the same year or closer to each other, then you should try to maximise your retirement benefits through a synchronised combined financial effort. Here are a few important things you and your spouse can do to work collaboratively towards your retirement goals.
Segregate Common And Individual Retirement Goals
While you both may be retiring close to each other’s retirement age, you may still have some distinct retirement goals connected to your individual financial needs. So, it is important to segregate individual and shared retirement goals that you and your spouse plan to accomplish. Segregating your individual goals can give a clear picture of how much both of you should contribute to your common goals, and accordingly, plan your investments for easily achieving your retirement goals.
Adjust Financial Contributions As Per Age And Income Gap
If your retirement age doesn’t match your spouse’s retirement age, you may still plan your retirement together. Depending on the age difference and income gap, you may adjust the individual contributions in such a way that you can reach the retirement goals on time. It is important to consider each other’s financial capacity and avoid financial stress.
Support For The Individual Retirement Related Goals Of Non-Working Spouse
What if your spouse is not working and contributing as a homemaker? You can still consider retiring together because your spouse also deserves a retirement life. When planning your retirement, consider the size of the financial corpus that can meet the payment for housekeeping and supporting staff, so that you give your spouse a chance to retire with you.
Review Retirement Planning From Time To Time
Review your retirement planning from time to time because when you and your spouse are going to retire together, you can’t afford to make any mistakes. Check health insurance needs and enhance the coverage if needed.
It is important to involve your spouse in every retirement-related matter, especially when you plan to retire together. When spouses retire together, they get the chance to understand the challenges in retirement life together, and it often helps them in easy transition from a working life to a retired life.
The author is an independent financial journalist
(Disclaimer: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)
