The Importance of Discussing Retirement Savings with Your Partner

Aging is something you can’t change in life, but preparing for it is. Research reveals that most Americans are woefully under prepared for retirement and will face financial struggles as they grow older.

Planning for retirement is important, as you never know what the future holds. As a couple, you need to ensure that you’ve saved an adequate sum for living expenses, accommodation, careers, medical expenses and equipment, and whatever else aging may bring.

Discussing a retirement plan with your partner may be uncomfortable. But planning for the future helps you to find comfort and security in the present.

Tackling The Topic Together

Money is a topic that most couples prefer to avoid, and the reasoning behind that preference is understandable. Formal discussions about money tend to inflate stress levels and trigger insecurities.

Yet choosing to be open about money matters with your partner is one of the healthiest things you can do. It will not only mean that your future is more secure, but your relationship will be too.

For couples that are married or committed enough to consider one another life-partners, saving for retirement is a topic that absolutely needs discussion—and not just when you’re about to turn 60. The earlier you sort it out, the better off both of you will be.

By talking through your plans for a joint retirement, you pay respect to your older selves. You can relax knowing that the future of your relationship, well-being, and financial affairs are secure. 

Evaluate Your Current Circumstances

Before starting to come up with a plan for the future, taking a look at your current state of financial affairs is a priority.

If you’ve lived together for a while, you should already have a decent understanding of one another’s financial backgrounds, income, and history. But if not, these are all important things to hash out together.

Talking about any debt or unpaid bills will allow both of you to gain a deeper knowledge of how things will evolve in the years leading up to retirement. Plus, it will bring you up to date with any issues that need ironing out well before then.

This is a crucial step in discussing a retirement savings plan with your partner. While it may give rise to uncomfortable emotions, particularly for those who have debt or an inconsistent stream of income, this conversation paves the way for a retirement savings plan that suits both of your needs and capacities.

Settle Differences in Opinion 

According to a recent study, 47% of couples disagree about how much money they think they need for retirement. This large percentage should not be surprising. Money tends to be one of the hardest topics for couples to address cohesively.

When tackling the subject of a retirement savings fund with your partner, understand that there will be things that you don’t see eye-to-eye on. In fact, you may have completely opposite ideas about what the future should look like—that’s why you are having this important conversation.

Draw up a list of concerns that you have about future expenses and do some research into the type of costs you may face in your golden years. There’s also the option of chatting to a financial advisor who specializes in retirement and health insurance to get an accurate cost projection. This will help you and your partner gain an objective overview of exactly how much money you need to save to maintain your lifestyle.

Create A Clear Way Forward 

Money and finances are sensitive subjects. This may be due to coming from a low-income background where money is a constant source of anxiety, taking out loans that are not yet paid off, or being in a currently low-paying job.

However, if one party avoids the subject, no real progress around a retirement savings plan can be made. This leaves you both in limbo, with no real safety net for the future.

Money is involved in so many of life’s important milestones (renting or buying property, raising children, funding your lifestyle choices, etc.). Staying on track with your financial trajectory is going to make your life easier, now and in the future.

If you’re not sure how to save or what retirement plan is suitable for you, enlist the assistance of a professional. A financial advisor or accountant will assist in assessing your joint financial situation and make suggestions about how to save and what type of saving plans to invest in.

With a clear plan, you can overcome initial difficulties and both follow a clear plan of action.

Alleviate Stress and Strain

Statistics show that over half of employees are worried about their financial future, and 33% don’t even have a retirement savings plan.

Yes, preparing for the future by developing a retirement savings plan with your partner can be a highly stressful affair, but it will reduce stress in the future. Stress increases our cortisol (stress hormone) levels and can be detrimental to our health, leading to stress related illness or depression. As you age, stress can become increasingly damaging and take a greater toll on your health.

By setting aside time to plan for your future now, you release your future, much older self from the stress of figuring retirement finances out alone.

Dealing with financial affairs in your sixties is much harder than when you’re in your thirties or forties. Plus, you have less chance of taking on a job to supplement your income and less energy to devote to a side hustle.

The Security of Planning Ahead

Compromises, emotional reactions, digging into your past, present and future—these are all important and necessary aspects of being in a committed, long-term relationship.

Instead of allowing the pressure of money matters get the best of you, use the time and energy as a tool for strengthening your relationship.

If you plan for your retirement together, you’ll both feel secure in the knowledge that neither of you will be a burden. Additionally, if you need continuing care, lose mobility and require a wheelchair, or face medical issues, you’ll have the financial means to cover this.

Discussing retirement savings with your partner gives you the comfort of knowing your financial future is as secure as possible. It’s never too early to start the conversation.