What if my partner and I have different retirement goals?

Make compromise part of your commitment

When you and your partner are gazing down the path to your future, are you looking in the same direction? Creating a shared vision for your retirement and beyond can help you avoid financial stress and unrealistic expectations.

 

Get on the same page (or at least in the same chapter)
Have an honest discussion about where you see yourself in retirement. If one of you wants to relax in a country house while the other’s itching for life in the big city, see if you can find out the motivation underneath the desire. One may want a slower pace, while the other needs regular doses of culture. Understanding each other's needs can make it easier to find a compromise. Perhaps a country house within striking distance of excursions into the city?

 

Be a team
Ideally, you’d each fund your own retirement, but helping each other out can make sense. If you don’t have a 401(k), your partner might want to consider contributing a little more to their own plan, while you max out contributions to an individual retirement account (IRA). If you’re married and one of you doesn’t work outside the home, research a spousal IRA — a tax-deferred investment account that lets the working spouse add to a nonworking spouse’s retirement savings.

 

Mind the (age) gap
If there's an age difference between you and your partner, consider creating a joint plan based on the younger partner's life expectancy to ensure sufficient income for them in the future. Work with your financial professional to make sure your investments fit your timeline.

 

Determine who retires first
You don’t have to retire at the same time. One partner could keep earning income to boost your savings. Plus, delaying retirement can potentially increase your Social Security earnings. Staggered retirements can also ease the stress of losing two incomes at once.

 

Do the math
Even if you and your partner have the exact same retirement dreams, you can’t make them come true if you don’t have enough money. Start by knowing the combined value of your assets and accounts. Then use our retirement calculator to see where you stand. Talk to your financial professional about the best investment strategies to reach your shared goal.

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