Should Couples Retire Together or Separately?

After spending decades working hard and earning paychecks, it seems like a given that a married couple would want to sail off into the sunset to enjoy their new leisure life together. However, it may be wise for some couples to think things through a bit. There are many issues spouses should consider before deciding whether to retire together, especially when one spouse is significantly older than the other.

There are many financial and non-financial considerations that spouses should consider before deciding whether to retire together. Consider these reasons for at least one spouse to continue to work.

Financial Considerations

When one or both spouses reach the retirement threshold with sufficient funds to retire comfortably, retiring together might make sense. But if there is a question of retirement income sufficiency, couples should consider the impact of retiring separately on their retirement savings, social security, and pension benefits.

Retirement Savings: If a younger spouse retires alongside an older spouse, it has the potential to shorten the lifespan of their savings. Even if the younger spouse worked just a couple more years, it would significantly increase their retirement savings to ensure lifetime income sufficiency.

Retirement Income: Generally, the income generated by your retirement accounts and Social Security is likely to be less than the level of income you earned while working. If one spouse retires before their full retirement age (FRA), it’s likely to produce an income gap between your living expenses in retirement and how much income your retirement savings produce. Income from even a part-time job can allow you to delay taking retirement benefits, including Social Security, giving your savings more time to grow.

Social Security: If a younger spouse claims their Social Security benefits early, before age 66, they receive a reduced benefit—for life. Delaying benefits to age 70 can increase your lifetime payments by as much as 30%! 

Medicare: When you leave your job, you leave your company health benefits behind. If a spouse retires before age 65, they are not eligible for Medicare. That means they will need to obtain private health insurance, which can be very expensive. That extra cost alone may be incentive enough to keep working to maintain employer coverage until you’re eligible for Medicare.

Non-Financial Considerations

Financial considerations are easy to identify and quantify. Less obvious but equally important are non-financial considerations that could impact both spouses’ quality of life in retirement.

Health and well-being: Spouses should consider the potential benefits of spending more time together in retirement.  Also, if one partner has health issues or requires caregiving, that may influence the decision.

Shared interests and activities: If both partners share common interests and hobbies, retiring together can provide more time to enjoy these activities together. On the other hand, if the spouses share significantly different interests or plans, retiring separately might allow each person to pursue their passions.

Social connections: Spouses should also consider the social aspects of retirement. Retiring together provides a better opportunity for a shared social network and more time for joint activities, while retiring separately may allow each spouse to maintain their individual social connections and friendships.

Bottom Line

Whether couples should retire together or separately depends on various factors, and there is no one-size-fits-all answer. Different couples have different dynamics, preferences, and financial situations. Here are some considerations to help you decide:

It’s essential for couples to communicate openly, discuss their individual preferences, and find a solution that works for both. Some couples may find that retiring at the same time enhances their quality of life, while others may opt for a phased approach that aligns with their unique circumstances and goals. Professional financial advice can also be beneficial in making informed decisions about retirement.

Don’t let the complexities of retirement planning overwhelm you. Schedule a call with us today, and let’s embark on the path to securing your financial future with confidence. At Willamette Wealth Partners, your retirement dreams are our commitment. Schedule a Call with Willamette Wealth Partners today to discuss the possibilities. Or call the office directly to reserve your consult: (541) 343-1420

Heather Dopp

Operations Manager

Heather grew up in Sun Valley Idaho and moved to Eugene in 2001. She has a bachelor’s degree in business administration from the Lundquist College of Business at the University of Oregon. Before joining the Willamette Wealth Partners team, Heather worked as an office manager. In her past role, her biggest accomplishment was assisting her company in becoming the second business in Lane County to achieve Voluntary Protection Program status from Oregon OSHA.

Heather and her husband Josh have a daughter named Leila. Heather’s biggest passion is spending time with her family and traveling to new places. She loves rafting, fishing and exploring Oregon rivers with her friends and family during the summer months. Heather also enjoys cooking and trying all kinds of cuisines from around the world.

Adam R Coughlin

Certified Financial Planner™

Adam began his career in financial planning in 2019 in Rochester, Illinois, working for an investment advisor and retirement education company before moving to Oregon to work at Willamette Wealth Partners. Prior to his career change, Adam worked in information technology and insurance.

Adam graduated from Illinois State University with a B.S. in Finance as well as a minor in Financial Planning and was chosen by faculty as ISU’s Outstanding Senior in Finance and Outstanding Financial Planning Student for his graduating class. In 2021, he placed Top 5 in the Financial Planning Association’s Case Study Competition. He is a CERTIFIED FINANCIAL PLANNER™.

Outside of work, Adam enjoys fishing, going to the gym, playing with his two Siberian Forest Cats, and exploring new restaurants with his amazing wife Kelsey.

Locke Bielefeldt

Certified Financial Planner™

Locke grew up in the Willamette Valley, where he watched his father, Doug, build a thriving financial planning business. After witnessing the impact, a financial planner can have on client’s lives, Locke became inspired to seek a BBA in finance at The University of Portland.

Before returning to his hometown of Eugene, Locke worked in leadership and consultant roles focused on small business and startup finance. He now assists clients in pursuing their financial goals through independent and collaborative advice, customized investment strategies, and financial planning.

Outside of work, Locke enjoys traveling, cooking all kinds of foods, reading science fiction, and spending time with his wife, Amelia.

Locke has been listed in Forbes’ “Top Next-Gen Wealth Advisors Best-in-State” for 2023 as well as Forbes’ “Best in State Wealth Advisors” for 2024.

The Forbes Best-in-State Wealth advisor ranking, developed by SHOOK Research, is based on in person and telephone due diligence meetings and a ranking algorithm that includes: client retention, industry experience, review of compliance records, firm nominations; and quantitative criteria, including: assets under management and revenue generated for their firms. Portfolio performance is not a criterion due to varying client objectives and lack of audited data. Neither Forbes nor SHOOK Research receives a fee in exchange for rankings.