Figuring out whether you have similar expectations and plans for retirement is an important conversation with your significant other. Whether it’s right around the corner or still a while off, it’s never too soon to start talking about retirement. Here are a few things to consider:
When you want to retire
Are you hoping to retire as soon as possible? Or do you want to work a little longer and save more? If one of you wants to retire earlier, how will that affect your lifestyle? Will you be able to travel still? Will you need to downsize? Discuss what is realistic for both of you and how you might need to adjust your plans.
Where you want to live
Do you want to stay in the same city, or try living somewhere new? Is staying close to family and friends a priority, or are you excited to meet new people and make new friends in a different location? It’s important to talk about these things early so you understand each other’s preferences and can figure out a compromise—like splitting your time between your current location and a new one—if needed.
How you want to spend your time
Do you see retirement as a time to travel and explore new hobbies? Or do you want to focus on spending more time with family and close friends? Maybe you’re looking forward to volunteering more. There are so many ways to spend your time in retirement, so it’s important to figure out your priorities. Even if you and your spouse don’t plan to do everything together, it’s good to have a conversation about what each of your routines will look like.
Whether travel is a priority
For some people, travel is a big part of retirement. If travel is something you’re both hoping to do, talk to your partner about how you can make that happen. You can even put together a list of places you want to visit.
Your finances
Your finances are likely one of the most important things to consider when discussing retirement. Do you have enough saved? What are your expected sources of income? Do you have any debt? Are there any other sources of funding you can use during market downturns, such as borrowing against the cash value of your universal life insurance or whole life insurance policy? (Remember, the primary purpose of permanent life insurance is the death benefit and borrowing against the cash value of your policy reduces the death benefit until the loan is paid back.) These are all key things to think about and discuss with your partner.
Getting on the same page
Retirement is a big step—one that you’ll take together. Keeping an open dialogue about your plans and expectations can be a step toward ensuring you’re on the same page.
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.
Source: iQuanti
