“We need to talk.” It’s that dreaded 4-word sentence that makes many couples cringe.
When it comes to discussing important matters, many couples tend to shy away from such topics. They can easily turn into disagreements…and disagreements feel uncomfortable.
One such topic is retirement.
A Fidelity survey shows that 47% of couples disagree about how much money they’ll need in retirement. Yes, almost half of couples don’t know how to talk about their future retirement.
Yet so few are learning how to handle their disagreements so they can go into retirement with peace of mind.
Why do so many couples avoid talking about retirement? Truthfully, it can be a hard conversation. Couples often disagree about money so, naturally, the topic of “how much should we save for retirement” is off the table.
However, retirement is so much more than the amount of money you should save (granted, this is a big one). It’s about the lifestyle you and your spouse want to create in retirement, shared dreams and goals, and plans for unexpected life events.
If you need to talk to your spouse about retirement, but don’t know how to start, here are some tips.
Find the right time and place.
You never want to start an important conversation on a whim — when dinner is on the stove, the children are fighting, or a movie is playing in the background.
It just won’t work.
Instead, tell your spouse that you’d love to talk about your shared goals and dreams for retirement. Then, find a quiet, relaxed time that works for both of you.
Establish common goals.
Begin by talking about your dreams and goals. This part should be fun. Do you and your spouse want to plant roots where you currently are or move to a different location? What places are on your travel bucket list? Do you have dreams of working with the homeless, donating regularly to great causes, or volunteering at your local food bank?
Once you’ve both shared how you’d like to live out your retirement, discuss how you can mutually make these dreams become reality.
Just remember: your goals and dreams may not be your spouse’s goals and dreams. This means that mutual participation, shared decision-making, and compromise are critical if you want this conversation to go well.
Determine financial savings.
Almost half of Americans say that running out of money is their biggest fear for retirement. And it’s not a big surprise considering many people are woefully unprepared for retirement.
Your financial stability may be the hardest topic to have, yet it’s also the most important. Simply put, without the proper funds, you won’t be able to achieve your goals and dreams.
So that sparks the million-dollar question: “are our savings on track to support the retirement lifestyle we want?”
If you need a little help determining how much you’ll need in retirement, check out this blog. It gives you some great pointers on estimating retirement expenses, creating a budget, and boosting your current savings strategy.
Assess healthcare costs.
As we get older, our health will decline. And while everyone’s health journey will be different, it’s always a wise idea to be prepared for the worst-case scenario.
Here’s a starting point:
- Review existing health insurance coverage and benefits.
- Understand your insurance coverage options, such as Medicare, supplemental insurance, and long-term insurance.
- Look into HSAs or similar savings options.
- Start discussing preventive care, healthy habits, and lifestyle adjustments to lower healthcare expenses.
Prepare a list of questions.
Retirement conversations can quickly become emotionally charged. That’s why it’s important to walk into the conversation prepared. A great place to start is with a list of carefully thought-out questions to keep you focused on the topic at hand.
Here are a few retirement planning topics to get you started:
- What age do we want to retire?
- What do we want to do once we retire?
- How do we want to spend our retirement years?
- How will our budget change?
- Do we plan to relocate or downsize housing?
- Do we plan to make any major purchases in retirement?
- How much do our dreams and goals cost and can we afford them?
- Will we have debt in retirement?
- What sources of income do we have for retirement (pensions, social security, investments)?
- How will we handle unexpected life circumstances or medical expenses?
- What is our biggest worry?
Seek professional advice.
As always, if you still have questions or can’t seem to come to a mutual conclusion with your spouse, seek advice. This may be a financial advisor, a close friend, or a couple’s counselor.
Don’t arrive at retirement, just to realize that you and your spouse are on a different page. Start the discussion now, so you can enter retirement with common goals, dreams, and aspirations.
Helping people achieve a happy, fulfilled retirement is one of our biggest passions at TruthPoint Financial. That’s why we provide personal support, continuous retirement plan education, and an unsurpassed level of service and guidance that you can trust. If you’re interested in knowing more about the retirement plans, we offer, give us a call.