How to Plan for Retirement Together
NEW YORK, June 21, 2023 (Newswire.com) - iQuanti: Retirement is an exciting time for couples, with the promise of more freedom and more time to spend together. It's also a major lifestyle change that should be planned for both emotionally and financially. Let's look at a few things to keep in mind to prepare yourself for a fulfilling retirement.
Decide where to live
One of the biggest decisions you'll have to make is where you want to live. Do you want to stay in your current home, downsize, relocate within the same city or state, or move out of state? Is it important that you're close to family and friends? Is a retirement community on the table? Discuss where you imagine yourself spending retirement and how you'll make the transition when the time comes.
Have a timeframe
It's important to have an idea of when you want to retire—that will help guide other decisions. Discuss when each of you wants to stop working. If you have different timeframes in mind, talk about what it will be like if one of you retires first. Having a target date can also help you plan your finances.
Decide how you'll spend your days
Achieving financial stability is essential, but a fulfilling retirement requires more than money. Deciding ahead of time what activities you want to do together—or separately—during retirement can help ensure that your days are full once the working years are over. Picturing what retirement will look like can also help you prepare mentally and emotionally. Think about big-picture plans like traveling together, exploring new hobbies, spending more time with family, or volunteering in the community.
Figure out your social circle
A big part of retirement happiness is having your partner by your side, but it's also important to foster relationships with family and friends. During the planning process, consider how you can stay connected with the people who matter to you and ensure there are opportunities for socialization. Will you be near family? If you want to move to a new location, will you join groups or go to events that will help you extend your social circle?
Plan your finances
Being financially ready for retirement means understanding all sources of income available to you and your partner—including pensions, social security benefits, part-time work, rental income, and investments. It's also important to consider any alternative sources of funding that might be available. For example, if you have a permanent life insurance policy like whole life insurance, you can borrow against the cash value for any reason. This can create additional cashflow, which is helpful during market downturns; it can also help you manage taxes. Once you understand everything you have to work with, you can make a plan to move forward.
The primary purpose of permanent life insurance is to provide a death benefit. Using permanent life insurance accumulated value to supplement retirement income will reduce the death benefit and may affect other aspects of the policy.