Retirement — The Dream: After a lifetime of hard work — raising the kids, sweating out
the bills, and building a stable and secure life — you and your spouse will be able to enjoy
your golden years doing the things you’ve always dreamed about.
Retirement — The Reality: It might be years of fun and leisure, but retirement can also
be a time of financial difficulties, compounded by illness and loneliness. An overly harsh view?
Perhaps, but it’s prudent to prepare for the worst while hoping for the best. That’s why married
couples need to arrange for their own (and each other’s) retirement security as early as
possible. Much of this preparation has to do with recognizing the need to “send money ahead” to
fund a comfortable retirement. But there’s more. Couples of all ages need to map out an
understanding of the three possible stages of retirement.
Three Stages of Retirement
Stage 1 — Life as a healthy, retired couple. This is the ideal, the retirement dream
that most couples envision. If they’ve planned well, they’ll have the money to do everything
they’ve dreamed about doing. Unfortunately, “dreaming” is about as far as retirement planning
goes for too many people.
Stage 2 — Living with a prolonged illness — possibly a series of them, as health
deteriorates in later years. When one partner’s health begins to fail, the other becomes the
caregiver. Worse, medical bills may soar. Without adequate medical insurance, the financial
strain can be devastating.
Stage 3 — One partner dies, possibly leaving the survivor in a financially threatened
position, unless proper plans have been made.
Preparing is Key
The key to coping with the potential financial difficulties of retirement is early planning.
If you or your spouse are aware of and prepared for these three stages of retirement, you
shouldn’t run the risk of outliving your retirement funds. When the two of you consider
retirement, also consider the financial aspects. Whether you’re just starting out on a life
together or shopping for that perfect vacation home, you’ll want to consider the following:
- Draft a will with your attorney and keep it current. It’s a starting point
for retirement planning.
- Take time to map out a retirement strategy together. Identify common goals and determine
the methods for achieving them. The closer you are to retirement, the more specific your
plans should be.
- Share information and responsibilities. Make sure you know where all the financial records
are and how to access them.
- It’s never to early or late to save what you can for retirement. Know the benefits of your
pension plan and Social Security. Then begin to build up a supplemental fund of your own.
Take charge of your own retirement — a large portion of retirement funds will need to come
from personal savings.
- Prepare to properly conserve your estate. A will can only go so far. Estate taxes may
erode a substantial part of your lifetime legacy — prepare ahead to make sure your heirs
receive what they deserve.
- Prepare for all possibilities. Life insurance, long-term care insurance and disability
insurance (during working years) can be excellent ways to protect the retirement dreams you
have.
- Have trusted professionals. It’s important to develop relationships with professionals in
several areas — legal, tax, insurance, and financial services professionals are the people
who can help you map out and help you to fund your retirement plan with the necessary
products, strategies and services.
Neither Steele Financial Solutions, its staff nor New York Life
Ins. Co. or its agents or affiliates provides tax, legal, or accounting advice.
Please consult your own tax, legal, or accounting professional before making any
decisions.
