Whether you’re newly married or celebrating another milestone anniversary, retirement planning as a couple is an extremely important conversation. If it is a first-time conversation or a check-in on your current plan, here are some questions you should consider asking.
How Are Our Savings?
Planning for retirement and discussing savings tactics is one of the first conversations you should have as a married couple. You are on the same team and will achieve your goals more quickly when you work together. A spousal IRA may be something to consider if one person has a salary and one doesn’t, and you also may want to contribute more to a retirement plan if only one person has a 401(k). One downside of a spousal IRA is the lack of liquidity, and that you will also pay tax on whatever you distribute from a traditional IRA after you turn 59 ½.
Do You Have an Age Gap? Will It Affect You?
Does your marriage have a large age gap? If so, it is important to make retirement plans based on the younger spouse’s age. If your spouse is 10 years younger than you then you may want to consider adding an additional 10 years of planned savings into your accounts. Understanding your age gap can also lead to the maximization of your Social Security benefits. You should consider that one of you will claim a Social Security spousal benefit worth up to 50% of the other’s benefit. An age gap shouldn’t be an issue when it comes to planning for retirement, but it is definitely something that you should take into consideration.
When Will We Retire?
The final question to discuss with your spouse is when you both plan on retiring. Is it going to be a transition that you both make at the same time, or are you going to do so separately? Retirement is a major change, both financially and within your relationship. It will be a big change to have both of you at home at the same time and will be an adjustment if your usual paychecks are halting all at once. It is smart to discuss how you want to go about retiring in your household and talk with a professional when the time comes. Retirement is an enjoyable and exciting time, and a thought-out strategy will make the transition much easier for all parties. Click here to request your financial review with Moore’s Wealth Management and we’ll help you and your spouse understand the next steps you need to take for all of your retirement needs!
