Planning to retire together? Start thinking about it now
(NC) For many couples, retirement can offer a long awaited opportunity to explore new interests and discover new passions.
If you are heading into retirement as a couple, Janice Farrell Jones, Vice President, Retail Savings & Investing, TD Canada Trust, says it's important to talk openly and honestly about the lifestyle you want to enjoy during retirement and where you are financially in terms of achieving your goals.
Jones recommends couples discuss three key points to help build a strong financial future together:
Who will retire and when? – In an ideal situation, dual-career couples retire when they have paid off all their debts and have a strong mix of assets to support them financially. If couples have not saved enough, there may be financial benefits to staggering retirement dates.
What does living the dream look like? – Start the retirement conversation by goal setting. Picture your ideal future together, from buying your dream home to spending warm summer evenings down south. Once you have a shared vision for your future, it is time to meet with your financial advisor to develop a roadmap to meet your goals.
What's the price tag? – As a general rule, couples should aim to save enough to have 60% - 80% of their annual income to live on in retirement. For someone making $60,000 annually, for example, their ultimate savings goal should allow for an annual income of $36,000 - $48,000. Saving early and regularly is essential to reaching this goal.
Jones adds that couples should revisit their financial plan regularly to ensure they are on track to achieving the lifestyle they want in retirement.
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