There was a time when men worked and women stayed home or left the workforce early to care for children – and that made the decision about when to retire a simple one: When the husband retired, the couple retired. But today many couples are dual-earners for all of their working years
and the prime earner in the partnership is no longer determined by gender. There is also much more flexibility about when to retire and what constitutes retirement as more and more Canadians choose to work part-time or even choose to start a business well after the ‘traditional’ retirement age of 65.
Still, it is the dream of many couples to retire together, simply because retirement is seen to be more enjoyable when it is shared with a life partner. And that’s a very good reason – but is it the right retirement plan for you?
Here are some basic retirement considerations you should discuss with your partner to help give form to your retirement dreams and decide if retiring together is a good idea.
Plan now: Regardless of age, it’s time to get your vision of retirement in line with your partner’s. Talk about your dreams and retirement goals. If you have been together for a number of years, it’s a good bet you agree on many things – but don’t assume. You may find that your partner is looking forward to unlimited travel while you would be content to stay at home close to family. Or that your partner wants to keep the family home and you were looking forward to downsizing.
Know how: Affordability is one of the keys to achieving any retirement vision. Once you agree on your shared retirement lifestyle, know how you will pay for it by adding up your retirement income from all sources – Canada Pension Plan/Québec Pension Plan (CPP/QPP), company pensions, Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), Tax-Free Savings Accounts (TFSAs), and expected returns on your other investments. If one or both of you intends to keep working for a number of years after age 65, add that income in, as well. Then, establish a budget based on your shared retirement vision. If your estimated budget exceeds your expected retirement income, either revise your vision or take steps now that will increase your retirement income by the date(s) you’ve set for retirement. The emotional and psychological aspects of retiring together certainly need to be considered – and so do the financial implications. Your professional advisor can help you decide on the best time for, and type of retirement for both you and your partner.
This article presents general information only and is not a solicitation to buy or sell any
investments. Contact your financial advisor for specific advice about your circumstances.
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