Many couples enter the retirement stage of life, and find, not surprisingly, that their aspirations for retirement differ; sometimes only slightly but other times colossally. Thus, it is important to discuss your expectations with each other before you retire to avoid conflict when you get there.
1. Lifestyle Expectations. Many aspects of your lives will change once you enter retirement-- not just your income stream and how you spend your time. Will you both jump into retirement with both feet or will either of you continue to work part-time? Will you relocate or downsize? How do you wish to spend the time that you do have together?
Many couples find that they spend more time together than they ever have in the past once they have retired. This can create tension if not discussed and planned for. It is important to establish who will play what role and which responsibilities each assume. In addition, it is important for couples to take time for themselves as they adjust to this new stage in life.
2.Hobbies and Social Obligations. As they did before retirement, couples will have different ideas in mind of what a typical day will look like. Will you continue to partake in the same hobbies and organizations that you did before you retired or will you have time to pick up something new or join an organization you’ve been interested in?
More importantly, are these activities that you will do together or separately? It is important to discuss these types of topics to determine how you will spend your newfound spare time.
3. Agree on Your Spending Habits. During retirement, your income stream, could be much weaker than it is at any other point in your life. You should both have a solid grasp on your income sources; where it’s coming from and how long it can be sustained.
With a less expansive income stream you should carefully allocate your funds as well as plan for future expenses that may be incurred. Creating and following a budget is a very important part of retirement planning. Items that should be included are future expenses such as healthcare costs, the potential need for long-term care, and many others. Because the cost of retirement can be so difficult to pinpoint, consider working with a financial professional that can help guide you through this planning process.
On a lighter note, be sure to save for the fun stuff too! One of the best parts of retirement is having the opportunity to do things you never had time to do before. Will you have a travel fund to visit all of the places you’ve always wanted to go? These are all thing the two of you should discuss so you can carefully plan for these expenses.
So how do you make sure that you and your spouse are on the same retirement path? Communication is key. Sit down today to discuss your retirement plans; if you need a financial professional to help facilitate this conversation or to bounce ideas off of, contact me today.