Start by working out what exactly you want from your retirement.
Retirement planning can be especially tricky for married couples. This is because they may have varying ideas about spending their golden years but also have additional expenses, income considerations, and social security benefits to consider.
Even for the closest couples, these factors can cause stress and bickering when it comes time to consider retirement planning.
How To Prepare For Retirement
In this guide, I will look at 10 ways married couples can plan effectively for retirement to help increase their chances of retiring comfortably.
1. Determine The Retirement You Want
Start by working out what exactly you want from your retirement. For example, will you spend most of your time at home? Or do you want to travel to far-flung places?
The type of retirement you want, including where you want to live and the activities you want to do, will determine how much you need to save to prepare for it.
You want a shared vision where you agree on what you want from your later years together. One strategy that can help you determine this is chatting with already retired couples and figuring out what aspects of their retired lifestyle appeal to you.
After agreeing to a plan, it is easier to determine how much money you need to support that lifestyle.
2. Start As Early As Possible
It is never too early to start planning your retirement. Depending on your age, you may have many decades ahead of you or just a few years ahead of you.
The sooner you start, the sooner you can plan the proper retirement and save to reach it. The longer you save, the longer your money has to grow.
3. Work Out A Budget
Setting up a budget involves looking at your earnings and expenses to see how much you can save each month. You can then determine whether you need to change your spending habits or increase your income to reach your goals.
4. Make Sure Your Goals Are Aligned
It’s crucial to maintain good communication throughout your marriage when it comes to your goals for retirement.
Plans change, so make sure your plans are in tune. Discuss your retirement plan regularly and ensure you are on the same page with your significant other.
5. Decide Where To Live
Where you live when you retire can significantly impact your lifestyle. You may already have somewhere in mind, so factor this into your plans.
If you have a large home now because you have a family, consider downsizing when you retire. The extra money you save can be used toward your retirement income.
6. Plan Your Investments
You will want to save money for retirement and can use one or more of the several investment options available. But, again, you need to discuss this together as a family.
How you invest will depend on how many years you have until you retire. But you could start by maximizing the money you save in your retirement accounts, including IRAs and 401(k)s.
To reduce risk, diversify your investments and do not put all your eggs in one basket.
7. Pay Off Your Debts
While saving is important, you should also focus on paying off your debts. If your debts cost you more money than you are saving, it’s worth paying them off first.
Take a close look at your debts and create a plan to pay them off, especially those with high interest rates, such as credit card debt.
8. Plan Your Health Care
Ensure you have a reasonable idea of your healthcare needs when you retire and plan how to meet these.
Apart from Medicare, be prepared to have enough funds for other health expenses that can arise, like copays and premiums.
9. Consider Life Insurance
Life insurance is something you should consider early on. Even though you’re planning your retirement together, anything could happen in the coming years.
Life insurance helps to protect those who depend on you. If the unexpected happens, your spouse can benefit from insurance, so their financial plans are not impacted negatively.
Life insurance should be considered a financial tool that can provide for and protect your loved ones.
10. Get Professional Advice
Finally, it makes sense to contact a specialist. You can do this anytime, but the earlier, the better.
A financial planner can make things more transparent and help you make better decisions as they help you construct a personalized financial plan.
