Advertisement
retirement

6 Things Married Couples Should Talk About When Planning for Retirement

Get on the same page as soon as possible, so you can help ensure you retire happily ever after together.

When they discuss the future, couples in their 50s and 60s often put the focus on their children and grandchildren or the needs of their aging parents. If they get around to talking about themselves at all, they might discuss an upcoming vacation or something that needs fixing around the house.

But what they tend to skip over is what will happen to them once they retire—and that's a mistake.

Advertisement - Article continues below

What will their life together look like? Do their individual visions match up or is there a complete disconnect?

I'm amazed at the basic issues couples haven't talked about together before they come to talk to their financial professionals. Here are a few that stand out:

1. What does retirement mean to each of you?

Maybe one of you wants to travel, and the other wants to spend more time at home, gardening or helping out with the grandkids. That's okay—as long as you have a plan to make it work. Talk about your goals and dreams now so you can work toward making them mesh later on.

2. At what age do you plan to retire?

It's surprising how often couples ignore this topic—and then argue about it later. Some are disappointed when they learn their spouse doesn't want to head off into the sunset as soon as possible. Others—worried about money or if they'll get along if they're together all the time—push for age 70 or beyond. A 2011 Fidelity study found that 62% of couples didn't agree on the appropriate retirement age. Discuss your concerns now.

3. How much money do you have—and where is it?

In most households, one person takes on the bulk of the responsibility for handling the money. And that's fine. But there's no excuse for being totally clueless about your retirement income. Both spouses should know their financial professional, and stay up on what's happening with savings and investments. Also, both you should be aware of where the paperwork is filed and whose name is on what.

4. What is your idea of risk?

Women tend to be more risk-averse than men, but sometimes it's the other way around. Regardless, I've watched many clients go wide-eyed when they saw what their spouse was willing to gamble with the hope of getting a bigger payback. Make sure you're on the same page on this one, or it could lead to bitterness and resentment in the future.

5. What happens to your income when one of you dies?

This takes the third point above a little bit further: Both spouses should know about pension rules, Social Security changes and insurance payouts. Don't make the mistake of thinking that when you're gone, your spouse will only need half as much money. There should be a plan in place to cover the surviving spouse's needs.

6. Are you going to leave money to your kids? If so, how much?

Don't assume everything you have left when you die will go to your children. Taxes and other costs can eat away at your legacy. Talk to each other about how you want to handle your estate—and then talk to a qualified financial professional and attorney.

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

When you have these retirement conversations, expect to have some disagreements, but keep looking for compromise. And don't hesitate to consult your financial professional—or a marriage counselor—for some assistance.

Steve Fullerton is co-founder of Fullerton Financial Planning and is FINRA licensed with Series 7, 63 and 66, as well as health and life. He is the founder and president of Kingdom Financial Group LLC, a Registered Investment Advisor with the SEC.

Stephanie Fullerton and Kim Franke-Folstad contributed to this article.

Investment advisory services offered through Kingdom Financial Group LLC, an SEC Registered Investment Adviser. We are an independent firm helping individuals make retirement income planning more successful by using a variety of strategies to custom suit their needs and objectives. By contacting us you may be provided information about insurance products and investment opportunities. Annuity product guarantees are subject to the claims-paying ability of the issuing company, and are not offered by Kingdom Financial Group LLC.

About the Author

Steve Fullerton, Investment Adviser

Co-Founder, Fullerton Financial Planning

Steve Fullerton is co-founder of Fullerton Financial Planning and is FINRA licensed with Series 7, 63 and 66, as well as health and life. He is the founder and president of Kingdom Financial Group LLC, a Registered Investment Adviser with the SEC.

Advertisement

Most Popular

2020 Stock Market Holidays and Bond Market Holidays
Markets

2020 Stock Market Holidays and Bond Market Holidays

Is the market open today? Take a look at which holidays the stock markets and bond markets take off in 2020.
July 1, 2020
What Are the Income Tax Brackets for 2020 vs. 2019?
tax brackets

What Are the Income Tax Brackets for 2020 vs. 2019?

The IRS unveiled the 2020 tax brackets, and it's never too early to start planning to minimize your future tax bill.
June 20, 2020
Searching for the Perfect Place to Retire
Empty Nesters

Searching for the Perfect Place to Retire

We home in on two places with less traffic and lower costs. 
July 2, 2020

Recommended

For Financially Responsible Kids, Do NOT Do These 3 Things
family savings

For Financially Responsible Kids, Do NOT Do These 3 Things

The key to putting your kids on the right financial path can be boiled down into one sentence.
July 1, 2020
10 Tax Breaks for the Middle Class
tax deductions

10 Tax Breaks for the Middle Class

Tax breaks aren't just for the rich. There are plenty of them that are only available to middle- and low-income Americans.
June 30, 2020
The Answers to More RMD Questions
retirement

The Answers to More RMD Questions

The CARES Act made 2020 required minimum distributions optional. But what are your next moves?
June 12, 2020
Travel Planning in the Time of Coronavirus
business

Travel Planning in the Time of Coronavirus

Insurance may not cover canceled vacations, but airlines and hotels may be flexible.
June 11, 2020