What you Might Not Have Considered When Planning to Retire with Your Spouse

By Elsie Dudukovich0 Comments

What do you see when you picture retirement?  As an IRA owner, you’re working to build and grow your investments to turn that vision into a reality. 
  • Have you shared that vision with your spouse?
  • Do you know their vision of retirement?
As with any major decision, communication between spouses is vital and the many facets of retirement are no exception.

Even with an age difference between partners, most couples spend a significant part of their lives working.  While the career paths might be different, the one constant is both individuals go to work and share in the framework employment provides.  In many ways, you’ve done this part of life together.
         
But this doesn’t last forever and a new question comes into view: Should we retire at the same time?

Investopedia offers an answer to this question in the article “Retirement: The One Thing Couples Shouldn’t Do Together,” While the article’s answer “no,” might not be the direction that fits your life, it is a good starting point to a valuable conversation.

While retiring at the same time is often portrayed as the ideal or only outcome, here are some interesting points to consider.

What is the possible financial impact?  The longer a person works, the higher his or her Social Security benefits become.  If you have a Roth IRA, there is no cutoff age for contributions, but you need earned income in order to keep contributing.  It’s important to also consider what stage your spouse is at in his or her career path, as there may be goals or achievements he or she still wants to achieve before retiring.

Are there any health insurance impacts? It’s possible for the working spouse to have more favorable premiums by carrying the insurance through an employer. 

How will you both emotionally adjust to the change? The financial complexities of retirement often receive more attention than the emotional ramifications of this major life change.  Many people find a significant part of their identity in their work and it can be a challenging transition to developing a new identity.  This is hard enough on couples when one person is going through this period; imagine both of you in a place of reinventing yourself.  You should also add in that both of you are now going to have a huge increase in the amount of time together and will need to adjust to that change as well.
      
Ultimately, as you plan for your retirement make sure you take the time to reflect on what you both want from those years and are on the same page.
 
Once you do that, shedule a free one-on-one checkup today with a Senior Account Executive and talk through how you can reach your goals, whatever they may be.