The good news: the results strongly suggest planning for the future can go a long way toward achieving greater peace of mind and alignment as a couple. By and large, those who have a detailed plan in place feel far better about their retirement prospects:
People who have a Retirement Plan in place are: | With | Without |
|---|---|---|
| Twice as likely to expect to live a "very comfortable" retirement | 42% | 18% |
| More likely to be "completely confident" in assuming full financial responsibility for retirement if needed | 67% | 42% |
| More likely to be "completely confident" in their partner's ability to assume full responsibility | 63% | 43% |
| Less likely to have "no idea" when it comes to how much they need in retirement | 28% | 54% |
"When we asked couples for their best advice to younger couples about handling finances, the top suggestions were to save as early as possible for retirement and make financial decisions together, " said Sweeney. "Clearly, the findings show that couples of all ages — from those just getting married to those approaching retirement — feel financially stronger when they heed this advice and take the time to plan together. When couples do, they clearly feel more confident, more closely aligned and better equipped to take on the future."
Fidelity suggests partners of all ages set aside time to make sure that, in addition to salary, they feel equipped to answer the following:
- What are those next big goals? All stages of life come with big financial milestones, whether it's buying a new home, saving enough for the kids to go to college, or having enough to retire. Work together to identify what you want to achieve in the next 3-5 years, how much you can realistically afford, and make disciplined saving a habit to achieve your dreams. For a fast and simple way to check how your budget is doing, here's a free checkup tool.
- Have you set aside money for an emergency fund? You never know when life is going to throw you a curve ball, such as a job layoff, an illness or even the furnace malfunctioning or car breaking down. Fidelity recommends setting aside money for an emergency fund — three to six months' worth of living expenses.
- Do you have a shared vision of what your retirement might look like? Are you looking to travel the globe or simply tend the garden at home? Do you want to downsize and live near your kids or at least live in the house where they grew up, or pack it up and move to a warmer climate? Talk it over, make sure you are the same page and start planning how you can afford that vision.
- Are you prepared for the unexpected? No matter what your age, it's best to plan for the inevitable, which is why it's important to have discussions around topics such as inheritance, estate planning and eldercare arrangements to ensure your wishes are carried out. Key documents every couple should consider include a will/estate plan, a durable general power of attorney and a health care proxy. In addition, designating a beneficiary for investment accounts and insurance policies is important, because it can help avoid complications in the event of a death or divorce, or the assets going to probate.
Fidelity offers an interactive Couples Quiz to help couples learn more about their financial personalities, which can be taken separately and then shared with your significant other, to compare your responses and see how you stack up. Upon completion, a Conversation Starter guide can help you more easily navigate the retirement process together. The quiz is available for desktop, tablet and mobile users at www.fidelity.com/couplesquiz.
Fidelity offers other resources, including a Fidelity Viewpoints article on "Four things to talk to your spouse about now,"which provides additional information on essential financial questions every couple should ask. Other related Viewpoints articles include "Five ways to protect what's yours," "Money lessons from three families," "Meet a family that plans together," "Five financial tips for newlyweds," and "When the family's financial boss dies." In addition, online retirement guidance and planning tools provide easy ways for couples to tell if they are on track to meet goals.
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