May 2017

Do you have a Shared Vision of Retirement?


Agreeing about what you want from retirement is crucial.
What does a good retirement look like to you?
Does it resemble the retirement that your spouse or partner has in mind?
Is it at least roughly similar?

The Office for National Statistics currently projects an average retirement of 19 years for a man and 21 years for a woman (assuming retirement at age 65). So sharing the same vision of retirement (or at least respecting the difference in each other’s visions) seems crucial to retirement happiness.

What kind of retirement does your spouse or partner imagine?
During years of working parenting and making ends meet many couples never really get around to talking about what retirement should look like. If spouses or partners have quite different attitudes about money or dreams that don’t align that conversation may be deferred for years. Even if they are great communicators assumptions about what the other wants for the future may prove inaccurate.

Are couples discussing retirement, or not?
It depends on who you ask – or more precisely what poll you reference.  The recent Couples Retirement Study conducted by Fidelity Investments indicated some 38% of the working couples polled were in disagreement on what kind of lifestyle they would retire to; 32% disagreed on how much they would need to work in retirement and 38% hadn’t discussed or planned how to deal with health and/or care costs.

Be sure to talk about what you want for the future.
A few simple questions can get the conversation going and you might even want to chat about it over a meal or coffee in a relaxing setting. Dreaming and planning together even on the most basic level gives you a chance to reacquaint yourselves with your financial needs goals and personalities.

To start ask each other what you see yourselves doing in retirement – individually as well as together. Is the way you are saving and investing conducive to those dreams?

Think about whether you are making the most of your investment and retirement savings potential. Could you save more? Do you need to? Are you comfortable with the amount of risk you are assuming?

When one half of a couple is the “hub” for money matters and investment decisions the other spouse or partner needs to at least have an understanding of them. If the unexpected occurs you will want that knowledge.

Speaking of knowledge you should also both know who the beneficiaries are for your pensions investment accounts and life insurance policies and you both need to know where the relevant paperwork is located.

A shared vision of retirement is great and respect for individual variations on it is just as vital. A conversation about how you see retirement today can give you that much more input to plan for tomorrow. 

This Briefing Note is provided for information purposes only and does not constitute any form of financial or investment advice. We believe the information to be correct at the time of going to press but we cannot accept any responsibility for any loss to any person as a result of action or refraining from action as a result of any item herein.

Printed and published by ©Holborn Financial Limited authorised & regulated by the Financial Conduct Authority. May 2017