Retirement is a significant milestone that many couples look forward to, but planning for it can be complex, especially when spouses have different timelines. According to a recent study by Fidelity, 43% of couples disagree on when they plan to retire. Factors such as unexpected job loss or health issues can push spouses onto separate retirement schedules. For those approximately ten years from retirement, aligning these plans is crucial for a smooth transition into this new chapter of life.
As a heart-centred Perth Financial Advisor specialising in retirement planning services, my goal is to help you make transformational changes that lead to a fulfilling and secure retirement. It’s essential to have key conversations with your spouse to ensure both of you are on the same page. Here are three important discussions to help synchronise your retirements and create a shared heart-centred financial plan.
Discuss Your Reasons and Goals
One of the first steps in synchronising your retirement plans is to discuss the reasons behind your timelines and goals. Understanding each other’s motivations can help identify core issues and find common ground.
Why and Why Not?
Start by asking each other why you prefer your respective retirement timelines. Does one of you love your job while the other is eager to stop working? Are there financial concerns, such as the fear of running out of money in retirement? Or perhaps one of you is unsure how to fill the time without work and is worried about driving each other crazy?
Retiring, or not retiring, won’t necessarily solve these issues. It’s important to talk about what you want to achieve both separately and together in the next phase of your lives. Take out a blank calendar and plot what your ideal week without work might look like. If you’re not aligned on your progress towards financial goals, consider scheduling an appointment with your Perth Financial Advisor. These conversations can provide clarity on the best time for each of you to retire.
Discuss Schedules and Responsibilities
When one spouse retires while the other continues to work, it’s crucial to address how this change will impact daily schedules and household responsibilities. Unequal distribution of tasks can lead to resentment, so it’s important to have a clear and open discussion.
Managing Expectations
Even if the working spouse decides to keep working, seeing their retired partner enjoying leisure activities like extra rounds of golf or lounging around can breed resentment. To prevent this, have a conversation about who will handle what tasks at home. The retired spouse might take on additional responsibilities such as grocery shopping, cooking meals, or taking care of home maintenance. If the retiree is handy, they might integrate repairs and remodelling projects into their new retirement routine. Scheduling a weekly lunch date with your working spouse can also be a refreshing break for both of you.
However, the new retiree shouldn’t feel guilty about enjoying retirement. The retired spouse must use this time to move forward and not go backward. They should still have goals and dreams and actively pursue them. This could be the perfect opportunity to take up a new hobby, volunteer, or even start a small business. Planning how to use spare time meaningfully and sharing these plans with the working spouse can help align expectations and ensure both partners feel fulfilled. Balancing responsibilities and enjoying retirement together can lead to a more harmonious relationship. If finances are in order and the working spouse feels envious of the retiree’s freedom, it might be time to consider retirement as a shared life transition.
Review Your Financial Plan
Retiring separately can create some complications when it comes to managing finances. It’s essential to review your financial plan to ensure that both you and your spouse are prepared for the changes that come with retirement.
Financial Adjustments
When one spouse retires while the other continues to work, it’s important to consider how your household budget will be affected. You might need to tighten the family belt, or you may find that you spend more on recreational activities now that one of you isn’t working. Evaluate your sources of income, including superannuation, investments, and potential part-time work. Deciding when to access your superannuation and whether to pursue part-time work are critical discussions to have with your Perth Financial Advisor.
Budgeting and Spending
Creating a detailed budget that accounts for the changes in income and expenses is vital. Discuss whether you will need to adjust your spending habits or if your current financial plan can support your new lifestyle. Make sure to include potential costs such as home maintenance, travel, and hobbies. It’s also a good time to review any debts and plan how to manage or eliminate them. Reviewing and adjusting your financial plan is an ongoing process. It’s important to coordinate every aspect of your heart-centred financial plan to ensure that both you and your spouse can enjoy a secure and fulfilling retirement. If you’re unsure about any part of your financial plan, consider revisiting some of our retirement coaching tools, such as your Financial Lifeline, Visioning, and Ideal Week in Retirement.
Retirement Coaching
As you navigate the complexities of retiring at different times, it’s essential to leverage tools and resources that can help you create a cohesive and satisfying retirement plan. The following retirement coaching tools can provide valuable insights and guide you in making informed decisions.
Financial Lifeline
Your Financial Lifeline is a crucial tool for understanding your financial trajectory. It helps you visualise your income, expenses, and savings over time, giving you a clear picture of your financial health. By regularly updating your Financial Lifeline, you can ensure that your retirement plan remains on track and adjust it as needed to accommodate changes in your life circumstances.
Visioning
Visioning is about imagining what you want your retirement to look like. This tool helps you and your spouse align your dreams and aspirations, ensuring that you both have a shared vision of your future. Whether it’s travelling, pursuing hobbies, or spending more time with family, having a clear vision can guide your financial and lifestyle choices.
Ideal Week in Retirement
Planning your ideal week in retirement involves mapping out how you will spend your time once you stop working. This exercise helps you identify activities and routines that will bring you joy and fulfilment. By sharing your ideal week with your spouse, you can ensure that both of you have a balanced and satisfying schedule that accommodates your individual interests and joint activities.
New Chapter
Synchronising retirement plans requires open communication, careful planning, and a heart-centred approach. By discussing your reasons and goals, managing schedules and responsibilities, and reviewing your financial plan, you and your spouse can create a shared, fulfilling retirement. Leveraging retirement coaching tools like your Financial Lifeline, Visioning, and Ideal Week in Retirement can provide additional clarity and support as you transition into this new chapter.
As a heart-centred financial planner, my role is to guide you through this process and ensure that you are always financially secure. Your role is to plan your life to meet all the keys to happiness, viewing life through the right lens, not just a financial one. Let’s set up an appointment to complete a Wealth Check and explore your vision of retirement together.
General Advice Disclaimer Please note, the information provided herein is general in nature and does not consider your personal circumstances. It is not intended as legal, tax, or personal advice. Always seek personalised financial advice to ensure your estate planning aligns with your unique situation and goals