Newly married couples often have a lot of financial planning to do: starter house, kids, a vacation fund, dream house, a college fund. It’s easy to overlook or ignore planning for your shared retirement. Don’t let this happen. The golden years may ultimately be the best of your marriage, if you understand each future other’s goals, needs and expectations. Here’s are six tips for planning for retirement as a couple.
Discuss Your Big-Picture Goals
Sit down with your spouse and share with each other your ideal retirement. One of you may envision retiring at 45 while the other is happy to work forever, you may dream of a cabin in the country while your spouse pictures spending your golden years in a motor home. The sooner you are aware of the other’s goal, the more time you have to work toward a compromise and a shared ideal.
Save for Retirement Together
Each of you is ultimately responsible for your own retirement, but just as you make today’s financial decisions together you should save for retirement together. Is your spouse participating in a 401(k)? If not, could you afford to add a bit more pre-tax income to your own plan to meet your mutual goals? If one spouse is not working outside the home, you may want to consider a Spousal IRA, which allows you to put aside funds in a tax-deferred investment account for the benefit of an unemployed spouse.