Saving for your retirement will often involve more than one person. Married couples should always plan their retirement together. Couples often dream about traveling the world when they retire or set sail into the open seas, leaving any thoughts of work behind. However, before sailing off into the sunset, it’s essential to have a plan. It’s important to decide if you’re both retiring at the same time, evaluate the financial and emotional outcomes, and if one spouse will continue to work. These decisions should be made well before the age of retirement.
Talk About Goals
While one of you may want to retire at the ripe age of 45, the other could be willing to work up to the age of 60. This is why it is essential to talk specifics when discussing your retirement plans. To ensure you are both on the same page, start talking about goals, compromises, and shared ideals. Sometimes, it can be beneficial for one spouse to be retired while the other works. To find what’s best for your partnership, talk it through with your spouse.
Once you both have your retirement goals set as a couple, it’s time to start strategizing. Married couples can often reap pretty great benefits during retirement. When a married couple times their individual and spousal claims correctly, they can maximize lifetime social security income. Couples need to factor in their age, the age of the claim, and their partner to create the most beneficial plan.
Update Your Beneficiaries
When starting your first 401(k), you had to name one or more beneficiaries. Beneficiaries are the ones who will receive the money if you should pass away. It’s imperative to ensure that this information is accurate and up to date. Whenever there is a major change in your life such as a marriage, new baby, divorce, or family death, an update to your beneficiaries will need to be made. The sooner you approach retirement, you’ll want to make sure that this information is up to date.
Although you are both responsible for your own retirement plans, in the end, it’s important to start saving together. Saving for retirement is just another financial decision that needs to be made together. Discuss if you both have a 401(k), if you can afford to pre-tax income to your plan, or if you should consider a spousal IRA. By planning together, you both will have an easier transition into retirement.
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