American Couples Have Shared Goals for Retirement, but Haven’t Nailed Down the Details: New Research from Ameriprise Financial
Couples overwhelmingly say they trust one another with money, but 1 in 4 haven’t come to an agreement on how much money they need to save for retirement or how much they should give to children and grandchildren
The
Nearly one-quarter (24%) of those surveyed say they haven’t come to an agreement on how much money they will need to save for retirement – or how much they should spend on children and grandchildren, both today and as part of their estates. A similar percentage say they have different estimates of how much money they will spend on hobbies and travel in retirement (25%) and how much they’ll spend on their lifestyles in general (22%).
The research surveyed more than 1,500 American couples with
Couples agree on when to retire – even if they don’t do so at the same time
Among the respondents who have already retired, the vast majority (87%) say they did so at the right time – and a similar percentage (83%) of their spouses or partners agreed. But that’s not to say they exited the workforce simultaneously. In fact, only 11% retired at the same time, and nearly two-thirds (62%) staggered their retirements by at least a year. This reality may come as a surprise to those who have yet to retire. More than a quarter of pre-retirees (26%) plan to retire together, while only four in ten (39%) are expecting to retire more than a year apart.
Expectations aside, the
“Our research shows couples trust one another and share the same dreams for retirement, but that doesn’t necessarily mean they’ve mutually agreed on how they’ll spend, save, and give away their money when the time comes,” said
Delayed conversations can stand in the way of planning for the future – and create tension in the present
Perhaps because they’ve held off on having important financial conversations with one another, more than half (52%) of couples surveyed said they have not yet put an estate plan in place. Additionally, 41% said they do not have a financial plan, and a similar percentage (39%) said they have not figured out how they will recreate their paychecks in retirement.
While they’ve delayed planning for the future, some couples may feel tension about how they’re handling their current finances, too – including whether they support other members of the family. Seventy-two percent of couples in the survey said they are providing some form of financial support to adult family members, but 14% reported they are not on the same page about how much they give.
Feeling disconnected from their partners may help explain why some have chosen to hide certain assets. One in seven (14%) of the survey’s respondents admitted they have an account that they have kept secret from their partner. Half (51%) said the balance is more than
Keckler said, “Couples who are delaying important conversations or who are unable to communicate openly about money tend to have more difficulty planning for the future together. Thankfully, there is a lot they can learn from other couples who’ve navigated the path to retirement smoothly.”
Couples share their lessons learned
Nearly three-quarters (72%) of couples in the Couples, Money & Retirement study have been together for more than two decades. These longstanding partners are more likely to report they share the same financial goals than those who’ve been together for shorter periods of time. They also revealed their top tips for couples of all ages to find compromise around finances:
- Communicate openly about financial goals.
- Find healthy ways to resolve financial disagreements.
- Choose a financial advisor together.
“The sage wisdom from these couples is clear: getting on the same page with your spouse or partner about money and retirement is critical,” said Keckler. “Fortunately, couples don’t have to go at it alone – a qualified financial advisor can help break big decisions into smaller, more manageable conversations that will help both partners feel confident as they work together toward building wealth and enjoying their retirement years.”
About the research
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