Marriage is the beginning of a new phase of life and as time passes, married couples evolve a shared sense of responsibility in all spheres, including personal finance. Spending your golden years together in relative comfort and security is the goal of most married couples. Here are some tips on Retirement Planning for Couples.
Most of the cases, although the planning is for a couple but one sex dominates. When planners objects, the response is “I have thought from her angle also”.
It is better to involve rather than empathizing. This requires good retirement planning that is oriented towards the needs of married couples.
Tips on Retirement Planning for Couples
Evolve shared goals
Do you know, your wife may want to associate herself with an NGO or set up an NGO to help social needy? She also wants to be independent at a certain point in life!
It is important to make your spouse a partner in your retirement planning. Whether you plan to retire at 45 or 65 or even if you never plan to quit working, it is important to factor in each other’s needs and creates a vision for the later part of your life. This is important because it is an opportunity for both partners to know what the other thinks about retirement. Retirement Planning for Couples is a chance to create a shared ideals.
Retirement Planning for Couples Saving together
Whether only one partner is working or whether both are employed, it is important to save money for retirement together.
It is just like tying shoelaces. Both ends need to work to hold a firm foot!
You can use a retirement calculator or service of Retirement Planners to arrive at a figure that is necessary to support your lifestyle after you begin the retirement phase of your life. This is also a chance to create a savings mechanism in the form of a retirement plan for your non-working spouse so that they have some source of income in their later years.
Remember:
Creating a budget is not HER work. Same way,
Investing is not HIS duties.
Retirement Planning for Couples Aim for a guaranteed income
How can you guarantee lifestyle continuation after work ends? This is a crucial question that needs to be addressed by both partners. To maintain a lifestyle you need a fixed cash inflow. This can be planned too through Retirement Planning for Couples. But you need to come with a consensus on the amount required.
Investing in whose name?
Ideally, both should have income in their individual names to preserve financial independence. Carefully analyze, the tax benefits associated with the investments. Also, the income can be spread in the names of family members to reduce tax liability.
Who is your beneficiary?
As a couple, you need to carefully weigh who will inherit the proceeds of your retirement kitty in case of your demise. Working together, examine your savings, including retirement kitty, and check if the nominations are in place. If there are investments that do not have a nominee assigned, you should work by mutual consent to name one.
Investments without nominations are on no use to anyone.
Options to make retirement planning easier
While there are a plethora of investment options available for retirement planning, Mutual Funds stand out because they are flexible, offer diversification and professional fund management at a fraction of the cost.
Other products that score big on merits are NPS, EPFO, PPF, Corporate FDs & Small Saving Schemes from the government.
New products like Annuity Plans are in an emerging phase.
An asset allocation strategy can be developed with the help of a financial advisor.
You can opt to invest in aggressive growth funds to build the corpus pre-retirement and conservatively post-retirement to preserve your saved nest egg and withdraw regularly from it in the form of a monthly income.
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