Better Business Corner

Only one-third of couples have even discussed retirement planning, according to a 2016 study by Hearts & Wallets retirement consultants. Fidelity, an American financial investment firm, recently determined 47 percent of couples disagree on how much money they will need for retirement.

If you’re like most couples, money conversations tend to lead to bickering—whether to take that much-needed vacation or save for retirement. However, failing to actively plan now to save for later in life could cost you hundreds of thousands of dollars for your nest egg. Also, the age you plan to retire could be several years off from what you initially estimated.

Lifetime income and retirement security experts TIAA Research found that men and women have very different views on how they intend to spend their retirement. Men plan to engage in more sports and outdoor activities, while women want to spend more time socializing with friends and family. Here’s how to start planning for your joint retirements at any decade of your working lives.

50s (peak earnings)
This is a time for you to turbocharge your savings. You’ve hopefully advanced in your career to be earning your peak salary with your biggest money obligations behind you. Or, you may have a new set of challenges: caring for aging parents, a career setback, a divorce or remarriage. Whatever is at stake, retirement is right around the corner and the decisions you make at this stage of your life can help you transition more easily into retirement.

First off, it’s time to get serious about numbers: Where do you see yourself and your partner living out your retirements? What are your plans? Research shows money skills typically peak at age 58 and then deteriorate as you continue to age. If you have multiple accounts, start consolidating them into fewer accounts at fewer firms. This will also make it easier to look at your overall mix of stocks, bonds and other investments.

If you’re age 55 or older and have a nest egg of less than $25,000, it’s time to take extreme action. Downsizing—when done right—can make a big difference. If you won’t be able to retire in your early or mid-60s, make sure you are in a job that will take you the distance. If you fear your current job is not up to the task, make a move now when you’re likely to be more attractive to potential employers than you will be in your 60s. Keeping physically fit will also give you energy and keep you alert on the job—something that will make you even more appealing to prospective employers.

Late 50s and 60s (nearing retirement)
Batten down the hatches and get ready to reap those rewards. This is the time when your teamwork in savings and communicating can pay off in a retirement that is both satisfying and meaningful for you and your partner. Start asking each other specific questions about retirement and see if any similarities overlap. Do you both plan to socialize more? Travel? Read? These are questions that will factor into where you decide to live and will predict your spending habits.

Don’t forget to consider medical care. If one of you retires early, where will you get medical insurance and how much will it cost you until Medicare kicks in at age 65? Speaking of retiring early, financial advisors recommend couples are happiest if they retire within a few years of each other. However, one spouse may end up retiring several years before the other due to a difference in age, health issues or a corporate downsizing.

An important aspect to consider is Social Security. Coordinate your timing in a way that is likely to provide the greatest combined benefit over your lifetimes. This is an especially important concern for women, since they are likely to live three to five years longer than men and more likely to collect a survivor’s benefit. You can file for retirement benefits as early as age 62, but your payout rises 6.5 percent to 8 percent per year for each year you delay filing up until age 70. The takeaway: delay claiming Social Security as long as possible.