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Retirement is a big deal, and there are a lot of moving components to plan out. Those issues multiply when there is another individual added to the mix. My definition of retirement is the financial freedom to move into the next chapter of your life, and that next chapter is different for everyone –especially spouses! This is not the time to assume the two of you are on the same page or decide that the two of you will figure it out later. Most people know that I’m a big proponent of talking to your spouse about everything financial, and retirement is no exception.  Be sure to take the guess work out of this process so you can enter the next chapter of your life in harmony.

It’s not uncommon for couples to not see eye-to-eye on retirement. About half of couples don’t agree on what age to retire[i]. Less than 10% of surveyed couples retired at the same time[ii]. And 47% disagreed on how much they would need to save for retirement[iii]. With so many areas to disagree, from where to retire to how to spend your days, how do spouses work together to achieve their cumulative goals?

I always like to recommend the couples start off by taking my financial compatibility quiz. Not only does this show the areas you may not see eye-toe-eye on, but the quiz generates a lot of conversations. Continue these conversations at monthly financial date nights to make sure that the two of you continue on the same path towards the same goals. Talk about the details – at what age do you want to retire, how do you want to spend your days in retirement, and how much of that time will be spent together. Keep in mind that most people have spent over 40 hours a week away from their spouse for decades. Retirement frees up all that time, which can be too much “togetherness” for some couples. This is why I like to take my clients through a discussion on “your time, my time, and our time,” well before it is actually time for retirement. Discussing these things in advance can allow you to compromise on issues before emotions flair and make a world of difference between living together happily in retirement or, in worst cases, filing for divorce.

Once you have an idea of what your retirement goals are, you need to formulate a plan. An experienced financial planner can be a great resource at this time, bringing up things you may not have touched on and running “what if” scenarios for you to see how your retirement dreams can be converted into actionable goals. Please start these discussions early because financial independence takes many forms, but you can’t figure out when you’re going to get there until you plan your route.

Marriage is many things, but ultimately, it is a partnership. The two of you work together to move the household forward. You may not always agree, but you find common ground by talking and sharing and compromising. If you plan ahead and plan together, you can find the right way to your coupled vision of retirement.

Take our FREE Financial Compatibility Quiz here.

[i] https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/couples-retirement-fact-sheet.pdf

[ii] https://assets.aarp.org/rgcenter/general/retired_spouses.pdf

[iii] https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/couples-retirement-fact-sheet.pdf

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Role models have a very powerful function. They shape values and behaviors in all facets of life, including our relationship with our finances. Knowing the influence they have, it’s obviously important to select the right financial role model. However, many are selected with very little consideration, if any at all. When it comes to something as important as your financial independence, you need to be confident that you’re following the right example to ensure that you and your money work together for your greater good.

There are those who are fortunate to have great people in their lives to provide an example of what to value and how to live. If this good example extends to finances, you are very fortunate indeed. However, good behavior or strong values doesn’t always guarantee a good financial role model. A generous nature doesn’t guarantee a good budgeter. Support in your youth doesn’t mean they planned well for their future. When selecting a financial role model, you need to make sure you’re selecting them based on sound financial behaviors and a relationship to their financial independence that you would like to emulate.

Oftentimes, though, many haven’t realized they have already unconsciously selected a financial role model. They may assume that they are simply reacting to circumstances happening to them. However, their response may be a direct duplication of mom’s ardent saving, dad’s faith in the stock market, or Aunt Flo’s blatant disregard for a budget. When we really stop and study our financial patterns, we realize that we have adopted many financial behaviors that may or may not be aiding us in our path to financial freedom. Without any scrutiny of these behaviors, we may be in for a rude and unfortunate awakening in the future.

Rather than unconsciously mimicking behaviors, we should be consciously selecting a financial role model. As with all decisions, be aware of whose lead you are following and what you want that to mean for your finances. Selecting the right example of financial behavior will pave the way to our goals. Don’t forget that your money and your road to financial freedom is under your control – choose wisely.