No matter where I go this week, my husband, Cliff, receives congratulations on his retirement from friends and neighbors.
He quit his full-time job a week ago. He earned his severance package, but I wince when I hear this. My career is in full swing, we've been married to him for over 30 years, and this chapter will require some experimentation.
Having said that, we simpatico About when to retire. According to a new report from Ameriprise Financial, that's true for most couples, if not most at the same time.
“It's really important to have a retirement plan that includes how you're going to spend your money and time,” Marcy Koechler, senior vice president at Ameriprise, tells Yahoo Finance.
I am really happy with my husband's decision. But don't call it retirement.
In fact, he doesn't plan to go full-time, instead going back to freelancing as an independent film and TV producer and editor, and being selective about the projects he wants to work on. His skills and career give him the ability to have no age imprint.
But the truth is that now that he's 70 years old, his income will decline precipitously, even with Social Security benefits starting next month.
For example, when he goes from savings mode to spending more money on travel, I'm already worried that he'll feel resentful in the future about what and how he's spending his retirement savings. doing. It may never happen, but that's a minor thing.
read more: Planning for Retirement: A Step-by-Step Guide
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The truth is, one in four couples disagree about their retirement spending priorities, according to Ameriprise Financial.
“Couples say they have work to do to agree on how much to spend on children, grandchildren, and experiences like hobbies and travel. Those are two important priorities for later planning,” said Koechler.
Data reveals that almost half of couples have no idea how to restructure their retirement paychecks. And more than a quarter of retirees say they are spending more than expected.
Money is at the heart of a strong partnership. It's the source that has enabled us to build a successful and joyful life as a team, from home to travel to raising our families and pets, as we do.
Most couples combine their finances after marriage. We are one of those people who keep some of our finances separate.
In our case, keeping a few separate accounts allows my husband and I to maintain some autonomy, allowing us to invest in what we like (within our terms) and manage work and life. You no longer need permission to spend money on entertainment that creates balance. .
For me, that is my horse, Caparino Z. For Cliff, that means tickets to hockey and baseball games and trips to visit his best friends.
But in any relationship, money can cause anger over accumulated debts or resentment over spending decisions. If one of your partner's girlfriends leaves the company, that hot button is even more likely to flash.
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I encourage couples to have regular conversations about money and review their finances together. Cliff and I have always tried to schedule these every few months, even if it causes anxiety beforehand. Sometimes it revolves around dreams for the future or an upcoming big-ticket purchase, like a new roof.
These chats can prevent worsening financial problems from occurring. Importantly, we review our overall financial situation with our financial planner at least once a year. We will rebalance your account and consider new investments.
When Cliff started talking about quitting his full-time job last fall, we asked him how he was going to pay himself each month and which accounts he would automatically debit to create the income stream he thought he needed. We started talking about how to set it up. At least at first.
When one partner retires or heads into semi-retirement, these conversations gain attention.
“With one partner's income gone, we need to discuss living expenses and whether one partner's income will cover everything, or whether the partner who is 'retiring' will need to tap into their savings,” says founder Stephanie McCullough. speaks. CEO of Sophia Financial told Yahoo Finance.
Most of the people McCullough works with nearing retirement want to be “fulfilled, engaged, making an impact and interacting with people,” she said. “But often, retirement means that some of your income goes away and your expenses go up because you have time to do things you've been putting off or dreaming about. It's one of the most awkward parts of having a conversation with a client. ” she said.
There may be a gap between when a person quits their job or quits for a while and when Social Security checks begin. McCullough works with clients to figure out how to make up the difference through part-time, gig and contract work. Potentially.
Start by finding an experienced and qualified advisor.
If you don't already have a financial planner on your team, you can also look for an advisor with the Certified Financial Planner designation. His three national groups of financial planners (National Association of Personal Financial Advisors, Financial Planning Association, and Certified Financial Planner Standards Board) offer searchable databases with contact information.
“Next to money is time together, time apart, and changing roles,” retirement transition coach Dorian Mintzer tells Yahoo Finance. “There has to be respect on both sides.”
Spouses who retire will have much more time to play and do things, but if they don't already have a hobby, they should develop one, Mintzer added. “The panic is when someone is retiring and their job is their only identity,” she says.
So part of the job is to develop other interests. You can start with something simple, such as a book club, biking, hiking, or running group, or volunteering. “The key is not to just feel too dependent on your partner,” she said.
As for my new “retiree,” I plan on keeping communication open and on our July 4th wedding anniversary, rereading the Navajo marriage blessing from our wedding day.
“Now you will not feel the rain, because each of you can take shelter from the other. Now you will not feel the cold, because each of you will have warmth for the other. Because it becomes.”
Kelly Hannon is a senior columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 of her books, including “The World's Best.''Taking Control Even Over 50: How to Succeed in the New World of Work.” and “You’re never too old to get rich.” Follow her on X @Kellyhannon.
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