With a mounting figure of women taking to corporate world or self-employment, in most urban households, both husband and wife have become bread earner for the family. In this context, the working couple can create an apt retirement plan as a team rather than just one of the counterparts having to fend for the whole household. Altogether, it is not compulsory that retirement goals of your spouse are similar to yours.
It is comparatively trouble-free to plan your future as an individual but is challenging when you do it as a couple. It is likely you both may have diverse spending patterns, objectives, and needs.
To gets clarity over the picture including the age at which you and your partner want to retire, your place to stay and the list of medical issues you and your spouse are at present having. Health Insurance is crucial in your retirement portfolio. Make sure you cover your spouse and yourself adequate enough to last a lifetime. If jointly, you can tuck an extra Rs 10,000 a month into retirement accounts starting at age 30, you will get an additional Rs 65 Lacs at age 60, assuming your money grows at 12% (factoring inflation at 6%) a year.
Factor in the rate of inflation and work out a rough lump sum expenditure that you will require after your retirement. It will assist you in selecting the right investments that will yield you pleasing results. Schedule regular discussions on your budget and upcoming large expenditures such, travel or a second car.
Invest only in the portfolios, which are equally favorable for you. Factor in any expenditure like vacation, charity or a passion that either of you wishes to pursue once retired. If your spouse wants to retire early to set up a business, factor in that possibility.
The odds are high that one of you may live longer than the other. And in case the age gap between the two of you is larger, factor this into your retirement plan. The age difference is a critical factor when it comes to retirement planning. One of you would need to dip into retirement savings much sooner than the other. This may need a different investment approach altogether. You could switch a part of savings into debt assets with stability and regular income to support the one who retires first.
Similarly, it is possible that the health of your spouse or yourself could affect your nest egg. Plan in advance based on medical history, doctor’s advice and your own health expectations. For instance, if either one of you suffers from blood pressure, diabetes or cholesterol related issues, God forbid such issues could lead to a heart disease in the future. It is a discussion you don’t wish to get into. But it is better to be prepared than to be sorry.
Keep in mind that any retirement planning is a work in progress. You can’t forecast precisely the number of years of retirement you or your spouse have to get ready. It is best to be truthful in terms of retirement goals so that both of you can be on the same page. A good relationship is the basis of a good retirement plan. So, go ahead and have that retirement discussion.