Planning for the Future Together: Retirement Savings Tips for Couples

Ten Tips for Navigating Retirement Planning as a Team

Retirement is a big deal, isn’t it? It’s a time we all look forward to, but getting there, especially with your partner by your side, requires some thoughtful planning and a good bit of teamwork. When you’re managing money together, you’re bound to run into both opportunities and challenges unique to being a duo. It’s really about keeping an eye on what you both want out of your finances and lifestyle as you navigate this planning journey side by side. Whether you’re just starting to talk about retirement or you’re further down the road, here are ten retirement savings tips for couples to consider. 

#1. Set Shared Goals

The first recommendation to consider is establishing shared financial goals – after all, you want to be sure that you’re both heading in the same direction. Take some time to discuss your aspirations, expectations, and the lifestyle you envision during retirement. You may find that you’re thinking along the same lines, but it’s also possible that the two of you have different ideas that will require compromise. Work together to create a shared vision for your future that you’re both excited about. By aligning your goals, you might have a better chance of staying focused on common objectives, fostering a greater sense of unity – and excitement – on your financial journey. 

#2. Calculate Dual Income and Expenses

Whether you’re both working or you’re a single-income household, another helpful retirement savings tip for couples is to know where you currently stand. Calculate your collective income and all your expenses to get a clear understanding of your finances. Work to identify any surplus income that you could strategically allocate to your retirement savings. It may help to consult with a financial advisor who can work with you on your budget and identify any areas for potential savings

#3. Maximize Employer Benefits

As you’re working toward retirement, consider taking full advantage of any employer-sponsored retirement plans such as 401(k) or pension accounts. If you’re both working, then both partners should be contributing to these plans and capitalize on any employer-matching contributions that might be available to you. Educate yourselves on the vesting schedule and withdrawal rules associated with these plans, so you can properly map out how they’ll come into play once you’ve retired. 

SEE ALSO: Four Financial Strategies for Empty Nesters

#4. Diversify Your Investments

You’ve probably heard this tip before, but a having well-diversified investment portfolio could help you achieve your long-term retirement planning goals. Collaborate on crafting an investment strategy that balances your risk and return, while also working with your timeline. Incorporating an investment strategy that aligns with your risk tolerance is a valuable consideration among retirement savings tips. It represents a strategic method to potentially build wealth over the long term, emphasizing the importance of aligned financial decisions for gradual and sustained growth in savings.

#5. Emergency Fund for Dual Security

Building a robust emergency fund that can cover at least six months of joint living expenses is helpful for times when unexpected expenses arise. You wouldn’t want an unexpected health issue or surprise job loss to jeopardize long-term savings. Preparing for the unexpected is one of the more indirect retirement savings tips for couples, but planning for challenging financial times means you won’t be as likely to need to dip into your retirement savings. 

#6. Consider Individual Retirement Accounts (IRAs)

In addition to employer-sponsored plans, another of the most savvy retirement savings tips for couples is to explore Individual Retirement Accounts (IRAs) to further enhance your retirement savings strategy. Traditional and Roth IRAs each have their pros and cons, and choosing the right one depends on an individual’s income and tax considerations. Consulting with a financial advisor may aid in comprehending the advantages and limitations associated with each type.

#7. Review and Adjust Regularly 

Life is dynamic and we all experience curve balls. So, your retirement plan should be nimble. As you get closer to retirement, be sure that you’re regularly reviewing your financial situation, investment portfolio, and retirement goals together. Adjust your strategy as needed, especially after major life events like marriage, childbirth, or changes in employment. Staying proactive can help to maintain alignment between your long-term retirement goals and your current financial circumstances. Remember, retirement planning is not a one-time event, but rather a process that will require ongoing attention.

#8. Plan for Healthcare Costs

It’s no secret that healthcare costs are on the rise, and they often increase in retirement because we simply have greater health needs as we age. Another handy retirement savings tip for couples is to get a handle on possible healthcare costs early on and make a plan for how to fit these into your overall retirement budget. Take some time to research and plan for Medicare options, supplemental insurance, and other healthcare-related costs. This way, you can account for healthcare expenses and reduce the surprise of unplanned financial strains.

SEE ALSO: Advanced Estate Planning Tools for High-Net-Worth Individuals

#9. Explore Social Security Strategies

Another retirement savings tip for couples involves thoughtful planning around when to claim Social Security benefits. By exploring the impact of the timing on your benefits, you can make informed decisions that align with your retirement income goals. This process requires examining various factors, including age, health, and financial circumstances, to form a strategy that complements your retirement plan. Consulting with a financial advisor may provide insights into common Social Security claiming strategies, assisting you in navigating this aspect of your financial journey.

#10. Seek Professional Guidance

Exploring the option of consulting with a financial advisor might be a consideration for couples delving into retirement planning. This approach offers the potential for receiving advice specifically tailored to your combined circumstances, possibly providing insights that could help navigate the complexities of financial planning. Engaging with a financial professional could assist in refining your retirement strategy, helping to contribute to a clearer understanding of your path forward.

Navigate Retirement Together With These Retirement Savings Tips for Couples

Retirement Planning is a collaborative effort that requires open communication, shared goals, and strategic financial management. Couples who approach retirement together with an intentional plan and mutual commitment could set themselves up to enjoy a fulfilling retirement together. By considering these tips, you and your partner have the opportunity to navigate the complexities of retirement planning, potentially setting the groundwork for a financially stable future.

As you embark on this journey towards a fulfilling retirement, consider seeking the expertise of wealth management professionals. At Paces Ferry Wealth, we are dedicated to helping couples like you navigate the intricacies of financial planning. Our experienced team can provide personalized advice and tailored financial advice to help you on your path to achieving your retirement goals. Our team is ready to assist you in crafting a retirement plan that aligns with your unique aspirations and financial situation. Contact a Paces Ferry Wealth Advisor today for a complimentary consultation.