Sept/Oct 2021 Reverse Mortgage Magazine

Money Sense Retirement Checklist for Couples Retirement Questions They Should Ask—and Answer By Merrill Lynch Wealth Management Note to our readers: This consumer-friendly column can be used by loan originators to help educate potential clients about personal financial issues and ideas. PLENTY OF DIFFICULT financial decisions will come your way as retirement approaches, including questions about Social Security and Medicare, and how best to draw down your retirement assets. But before you even begin to tackle those issues, it helps to have a broader, more personal conversation about what each of you wants your life to be like in retirement. Use this checklist to get the conversation started. You may be surprised to find that you’re not on the same page about some things right away. But keep talking. Make this conversation part of an annual heart-to-heart about your life together—where you are and where you hope to be. Will We Retire at the Same Time? Many couples find this the toughest question to resolve. One of you may be looking forward to winding down a satisfying career, while the other is still enjoying the pace of full-time work. “Examining the ‘why’ behind your desired retirement date, along with the financial impact of different retirement dates, can help a couple get past their stalemate,” says Valerie Galinskaya, managing director of the Merrill Center for Family Wealth™. “Statistically, women tend to live five years longer than men,” Galinskaya says. “Particularly when a wife is the younger spouse, there may be good reason for her to keep working a while longer so that she won’t outlive their retirement savings.” Having one spouse work longer may also make it possi- ble for one or both spouses to delay claiming Social Security benefits—a choice with a concrete financial reward. Up to age 70, “for every year you postpone receiving payments, you increase the size of your benefit,” says Anthony Webb, research director of the Retirement Equity Lab at the New School in New York City. “And your spouse will also be in line for a larger survivor’s benefit.” Where Will We Live? Your choice will most likely have a major effect on your retirement finances. Downsizing from a house to 6 REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2021