Mistakes to Avoid when Planning for Retirement with Your Loved One
Retirement should be an exciting time for older adults because it marks the beginning of a new chapter filled with freedom, possibilities, and personal fulfillment. After decades of hard work and responsibilities, retirement offers the chance to focus on what truly brings joy—whether that’s traveling, spending more time with loved ones, pursuing hobbies, volunteering, or simply enjoying a slower pace of life. It’s a time to rediscover passions, explore new interests, and shape daily life on your own terms. Far from an ending, retirement can be a rewarding and enriching stage of life, full of opportunity to grow, connect, and thrive.
However, some necessary planning is recommended so that your next chapter is as smooth as possible. Here are some of the most common mistakes made by couples when planning for retirement:
1. Not Having Clear Conversations About Retirement Plans
As retirement approaches, it becomes even more important for couples to talk openly about their expectations. Many older adults assume they’re on the same page, only to discover differences in vision—such as where to live, how to spend time, or whether to continue part-time work. Misunderstandings at this stage can lead to frustration or last-minute compromises. Taking the time now to discuss shared goals, routines, and lifestyle preferences can lead to a more harmonious and fulfilling retirement.
2. Underestimating Healthcare and Long-Term Care Needs
Healthcare expenses tend to increase with age, yet many couples near retirement without a detailed plan for these costs. While Medicare will help cover some expenses, it doesn’t include everything—especially dental, vision, and long-term care. Without proper planning, out-of-pocket costs can quickly drain savings. Older adults should review options for supplemental coverage and evaluate whether long-term care insurance fits into their budget and needs.
3. Poor Timing of Social Security and Retirement Withdrawals
As retirement nears, decisions about when to claim Social Security and how to withdraw funds from retirement accounts become critical. Some couples claim benefits too early, locking in lower payments for life. Others take withdrawals in ways that trigger higher taxes or penalties. Coordinating the timing between both partners’ Social Security benefits and retirement account distributions can greatly impact overall financial security. A financial advisor can help map out the most tax-efficient strategy.
AARP has a very insightful story with additional tips and recommendations for those nearing retirement. To read the story, CLICK HERE.