Couple's Retirement Puzzle

Couples Retirement Puzzle on Wake Up with Wendy Show

Recently we were guests on the Wake Up with Wendy Show on Chelmsford Telemedia.

You can watch our interview here:

Planning for the Future: Couples and Retirement

We were guests earlier this week on the Fox Morning News on Fox Boston.  You can see our interview below:

Planning for the future: Couples & retirement: MyFoxBOSTON.com

 

Making Retirement Plans: Making Decisions Together

There was a time when people did not need to think about when to retire; their employer or organization decided for them. Retirement benefits were more secure and often more generous but, with a shorter life span twenty-plus years ago, many people did not live long after they retired.

Decisions can feel complicated when the timing of retirement is up to you. You may be asking, how will retiring now affect our financial future? Am I bored, tired of what I’m doing or just burnt out? Am I supposed to retire because I’m sixty-two or sixty-five, or whatever the age may be?

Many people in their sixties and seventies love what they do and have no plans to stop working in the foreseeable future. Others may have lost their jobs due to layoffs and downsizing, but are not ready to retire. On the other hand, some younger boomers in their fifties still dream of an early

Having accurate information and facts and talking about how you feel will help you make decisions you’re able to live with. Whether you are in your fifties, sixties, or seventies, you need to think carefully about how you want to use your assets and resources. Hopefully you can still have fun and do the things that are important in your life, but be sure to consider the pros and cons so that you can make informed choices.

The most important part of decision making is communication. Some couples, like Sharon and Clarence, have based their relationship on good communication, planning ahead, and making decisions together. 

Here is their story:

Sharon and Clarence began planning their future after they had their first child forty years ago. Retiring together in their early sixties was the vision they are now living. They are both retired from full-time careers but work a few days a week in their respective fields. Part-time work allows them the time and extra income to visit their children, travel and enjoy their lifestyle.

Sharon continues to receive health insurance through the school department where she had worked for thirty-five years. Sharon and Clarence communicate well and make important decisions together. They share similar values and goals and are able to compromise and negotiate differences. For them, the decision about when and how to retire fit into the long-term plan they developed together.

There are many variables and considerations in making the decision to retire, but it is important to be clear about two questions: “Why now?” and “What do I want to retire to?”  You and your partner can begin to get on the same page with your retirement vision when you thoroughly explore these two questions.

Retirement Planning: Working After Retirement

As you and your spouse discuss your retirement plans, one of you may discover a reduced tolerance for a work situation that is no longer fulfilling your needs or one that is inconsistent with your values. And priorities may need to shift if your health and well-being are undermined.

Here's Steve and Carol's story:

Carol and Steve first talked about retirement in their late fifties, focusing primarily on financial goals. They agreed to continue working and retire together when they were both sixty-five. In her early sixties, Carol’s company reorganized, and she was transferred to a new division where she was doing work that was neither interesting nor satisfying. She felt like she had been demoted, and resented being supervised by someone younger and less experienced.

Frustrated and unhappy, Carol began to dread going to work. Steve was aware of the situation, but he had no idea how close Carol was to quitting. At sixty-two, she could not imagine staying at her job another three years, even though leaving would mean losing health insurance coverage, which had been a big issue in their discussion about when to retire. Steve planned to sell his small but successful accounting business when he retired. He enjoyed his work and rarely complained. But Carol’s job was draining her energy and giving her little more than a paycheck.

Carol and Steve needed to revisit their timetable for retirement and decide how to resolve the dilemma. Their situation is an example of how life can bring changes that affect decision making.

Couples need to start talking about retirement well before they get there, and then reassess their decisions as circumstances change. Even the best plan may need to be revised. Carol was unhappy and disappointed. She wanted to leave her job but felt stuck, primarily because she depended on her health insurance benefit. Carol and Steve needed to talk about whether she had to “stick it out” until they were both eligible for Medicare, or whether it was possible for her to leave her job sooner.

Perhaps there were also other options they had not yet considered:

Carol and Steve talked about their priorities and did some problem solving together, which helped Carol feel supported and more open to possibilities. Steve encouraged her to talk with her boss about how her experience and skills might be utilized in another part of the company. They agreed that if a transfer was not possible, they would find a way to pay for COBRA for eighteen months, which would give them time to figure out what to do.

As it turned out, Carol’s boss liked her creative thinking and offered her a part-time position that was new and interesting. Although health care benefits would not be fully covered, it was a good compromise and well worth Carol’s peace of mind. She and Steve still planned to retire together at sixty-five, but with a somewhat different plan. Meanwhile, working part time gave Carol the opportunity to begin taking courses and explore new interests.

As you and your partner determine your decision about whether to work after retirement, make sure your decisions will not jeopardize your financial security.  While the issue is universal, the solutions are particular to you and your situation. Making important decisions is an ongoing process. As we have seen with Carol and Steve, what you’ve planned for may change when circumstances change. Having accurate information and facts and talking about how you feel will help you make decisions you’re able to live with.