4 tips to manage money as a couple
Anyone who’s ever been in a relationship would agree that no topic has the potential to spoil the mood as quickly as money talk. This is especially true during the lead-in to retirement, where every decision you make has the potential to have a big impact on your financial future. We’ve put together a guide to managing money as a couple, so both of you are confident you will be able to enjoy a high quality of life in retirement.
1. Set goals
There’s no way of knowing how you’re positioned in the lead-in to retirement if you don’t know where you want to be. So, it’s important to have a frank discussion with your partner regarding your financial future. Are you comfortable with the prospect of downsizing if it frees up funds to explore interests like travel? Or would you prefer to maintain a higher quality of life. Knowing your goals is your first step towards achieving them.
2. Take stock of your financial situation
Now that you know where you want to be, it’s time to figure out where you’re at. However, it can be difficult to get a sense of how the two of you are travelling in the larger scheme of things, especially if you don’t have a degree in finance. It is always worth considering the services of a certified financial planner, who can help you get a clear sense of how the two of you are positioned monetarily in the lead-in to retirement.
3. Consider the challenges
You might know where you’re at and have a plan in place, but sometimes getting where you need to be is easier said than done. It’s important to be aware of the fiscal challenges that face a couple in retirement. What’s going to happen if you or your partner succumbs to ill health? If the relationship breaks down, will you still be able to fund your retirement. Being aware of these challenges can put you on the front foot if the worst happens.
4. Be wary of the gender savings gap
The gender gap, which sees many women retire with insufficient superannuation savings is something every couple should be wary of. The good news is society isn’t standing still. Initiatives like Equip’s Move the Dial campaign are making very real inroads in terms of closing the gender savings gap and ensuring everyone will enjoy a happy retirement.