Retirement Planning for Married Couples

Remember the vows you took at your wedding, pledging your commitment to one another through good times and bad, in sickness and in health, for richer or poorer, until death do you part? Those heartfelt promises mark a special time in your lives—a joyful celebration filled with love. You committed to loving one another through every challenge, even as you look forward to a blissful retirement together. 

By choosing to prioritize your partnership and work towards building a shared life, you create something truly beautiful. Now you are ready to build your next chapter together: retirement. We’re here to guide you with helpful retirement planning tips specifically for married couples.   

Key Points – Retirement Planning for Married Couples  

1. Starting Your Retirement Plan with Income Planning:  
2. Finding Affordable Life Insurance:  
3. Finding Affordable Healthcare in Retirement:
4. Investment Planning Mindset Shift in Retirement:
5. Financial Advisor Specifically for Retirement:
6. Legacy Planning for You and Your Spouse:  
7. Conclusion:  

Starting Your Retirement Plan with Income Planning:  

When you plan your wedding, it is filled with planning down to even the smallest detail. Planning your retirement together is no different. There are small details and big obstacles that you have to decide and plan for your life together. Entering retirement together comes with its unique set of challenges and rules.   

So start with a plan that can help you and your spouse thrive in retirement. A plan helps you know where you are and where you need to go and what to do to achieve your retirement dreams.   

When you build anything, you need a solid foundation and retirement that starts with your income and building a plan that ensures you both get a paycheck for the rest of your lives.   

That’s where an income plan comes in handy, to give you a solid foundation and make sure that even without a paycheck, you can still pay yourself. The largest issue with income planning is how long people are living. Thanks to advances in healthcare, people are living longer, meaning retirement is now longer than it has been in the past. And you need money to cover living longer and to do all the things you dreamed about for your retirement together.   

How much money is enough to cover a longer retirement? Focusing on one singular number isn’t the right way to approach this question. Talking with a financial advisor can help you better understand where your plan is and where it needs to go.   

Staring with your sources of income:  

• Social Security – since your first paycheck you’ve been contributing retirement is when you get to cash in on that promise. Social Security benefits, and what your are eligible to receive. To get a clear picture of your estimated benefits, visit www.ssa.gov/myaccount.

• To qualify for spousal benefits with Social Security, you must be married to someone who has worked and is currently receiving benefits. Additionally, the non-working spouse must be at least 62 years old. While spousal benefits generally mirror the standard benefits, there are a few key exceptions to note:  

• Growth Limitations: Spousal benefits stop increasing once the non-working spouse reaches full retirement age, at which point they receive 50% of the working spouse’s benefit.  

• Survivor Benefits: Your spouse may be able to claim your benefits if you die.  

• Divorced Couples: Even divorced individuals can qualify for spousal benefits, provided certain conditions are met.  

• Pension – if you have one like most government jobs have

• 401(k) and IRA – your retirement accounts in retirement when you start to pull money out of them they will help you pay yourself.  

• Other:  

• Life Insurance

• Annuities

• Long-term care insurance

• Stock & bond portfolios

• Liquid assets (what is in your bank account)  

• Rental properties

Sit down with your spouse and review all your income sources, both big and small, to better understand what you will have coming in during retirement. 

Learn More: Why Many Retirement Plans Fail

https://www.youtube.com/watch?v=B20JiNuxHgc

Finding Affordable Life Insurance:  

Life insurance is often misunderstood; it's not for you, but for your loved ones and your spouse. If you haven't thought about it before, now is the time to consider it for their sake. There are many options available, so be sure to research and find the one that is right for you. 

A survey conducted by the Life Insurance Marketing and Research Association revealed that individuals aged 25 to 40 often overestimate the cost of life insurance, believing it to be three times more expensive.  

You are neither too young nor too old to obtain a life insurance policy. Starting young typically means lower premiums and can also provide protection for parents or co-signers. For individuals over 60, life insurance premiums tend to be higher due to an increased risk of age-related health issues. However, if you have individuals who depend on you financially, it’s essential not to overlook this option, even with the higher costs. 

Finding the policy that is best for your family or spouse is the most important part, people rely on you to help cover finances and find something to ease their burden. A good place to start is to investigate both whole life insurance and term life insurance and which one makes more sense for you. They both offer a death benefit to the beneficiaries. The main difference is that whole life insurance offers the death benefit for the entire lifetime and term life insurance is only within a certain time frame.   

• Burial insurance is a whole-life policy to cover your future burial and other end-of-life expenses.  

• Survivorship life insurance a type of joint policy that covers two people instead of one, offering the same characteristics and benefits as individual life insurance.  

• Universal life insurance is a type of whole life insurance that offers lifetime coverage and builds cash value. It allows you to adjust premiums cheaper than traditional whole-life insurance. However, if your investments underperform, your cash value may decrease, and your premiums could increase.

At 210 Financial, we’re here to assist you in finding the policy that fits your family's budget and lifestyle. 

Learn More: Debunking the 5 Most Common Misconceptions About Life Insurance

Finding Affordable Healthcare in Retirement:

The game changes when you retire, lose a paycheck, have constant steady work in your life, and your healthcare plan. Now, there are healthcare plans available in retirement for you and your spouse, but you need to look into what plan is going to work best for you both. 

Medicare: Diving into all the complex terminology can be overwhelming, especially if you haven't discussed all your potential needs. It's essential to stay informed, so prioritize consulting with a Medicare professional and reading materials that help you better understand the available plans. 

1. Enrollment: Be aware of the seven-month enrollment window for signing up for Medicare. This period includes three months before your 65th birthday, the month of your birthday, and three months after. You’ll have another opportunity to enroll in the fall, but you may face a financial penalty if you miss the initial enrollment window.  

2. Applying on Time: It’s essential to apply for your Medicare benefits on time, especially since most retirees rely on it as their primary healthcare plan after leaving the workforce.  

3. Researching Plans: Medicare offers various plans, and everyone’s health needs are different. It’s important to research each option and consult with a financial professional to determine which plan is best for you.  

4. Seek Professional Help: Don’t try to navigate Medicare planning and research on your own. Reach out to professionals who can help you understand your options and find the best care for your needs.  

5. Provider Participation: Keep an eye out for hospitals and healthcare providers that participate in your chosen Medicare plan and offer the services you require.  

6. Plan: Make sure to plan everything related to Medicare in advance to avoid any complications.

HSA: An HSA, or Health Savings Account, allows you to set aside tax-free money for medical expenses. While it is not exclusively for retirement, it can help cover costs that Medicare or insurance does not cover. 

Long-Term Care: Considering a nursing home or any long-term health care that involves significant expenses is an important topic to discuss. Although it may seem distant, delaying this conversation—especially if there is a history of health issues in your family—can be unwise. It’s essential to talk about your options and determine if there are necessary steps you should take together.  

Learn More: Planning for the Medical Costs You Don’t See Coming in Retirement

Investment Planning Mindset Shift in Retirement: 

Transitioning into retirement resembles a reset, requiring a shift in how you view your finances, daily activities, and investment strategies. Prior to retirement, taking risks can help your money grow and prepare you for this new stage of life. However, once you begin relying on those funds for your living expenses and dreams, your approach must change. 

Understanding your risk score and how to manage it for retirement is important. As you age, it’s recommended that you reduce your risk exposure.

To calculate your risk score, use the formula: 100 – your age = your risk score.  

The main reason for knowing your risk score is that, while you are young and still earning, you can take on more risk since you have time to recover from any losses. However, as you near retirement, every dollar becomes crucial, and you must lower your risk.  

The sequence of returns can significantly impact your retirement savings, especially if you’re forced to sell investments during a market downturn. Once you retire, you will stop contributing to your retirement and will start withdrawing funds instead.   

Learn More: Financial Independence Starts with Smart Investing: Are You Taking The Right Risks?  

Financial Advisor Specifically for Retirement: 

Finding a financial advisor who focuses on retirement planning can help you navigate this new phase of life with someone who understands its complexities. Retirement planning differs significantly from planning during your working years. A retirement advisor can assist you and your spouse in creating a personalized plan that addresses your specific needs. 

They can help remove the emotional aspects of planning, develop a comprehensive retirement strategy, and ask essential questions to facilitate important discussions about retirement. Additionally, they can manage your portfolio, allowing you to enjoy this time without financial stress.

Learn More: How a Financial Advisor Can Help You Navigate Retirement Decisions  

Legacy Planning for You and Your Spouse:  

As a married couple, you have likely accumulated many assets that are worth protecting and passing down in a meaningful way. Creating a legacy plan can help you safeguard the legacy you’ve built through hard work. 

To start, list your assets and gather any relevant documentation. Then, consider the following questions: 

• Who would you like to leave your property and assets to? Is it one specific person or multiple individuals?  

• Are you inclined to support charitable causes? Is there a specific charity you would prefer to give to?  

• Do you have any preferences regarding your medical care that should be documented?    

After reflecting on these questions and gathering the necessary documents, it's advisable to seek professional assistance. Begin by consulting a financial advisor, and if necessary, consider reaching out to an attorney. A financial advisor can help you develop a comprehensive legacy plan. Having a well-structured legacy plan with all the appropriate legal documents and your wishes clearly outlined can provide you peace of mind and support your loved ones.  

Learn More: Leave a Legacy That Matters

Conclusion:  

Standing by each other's side through thick and thin is an important commitment filled with love, trust, and hope. As you navigate this next step in your lives together, embrace the fun and excitement it brings. Create a plan to ensure you can both enjoy all the rewards that come with retirement. 

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