5 Things to Know If You’re Retiring Before Your Spouse
Key takeaways
Retiring at a different time than your spouse can present some unforeseen challenges.
You may need to reassess your spending plans.
Having open and honest conversations about your individual expectations is the best way to handle your new living dynamic.
Glenn Kirst is a planning excellence lead consultant at Northwestern Mutual.
Retirement is a big milestone, but not all couples go through it at the same time. Even if you and your significant other have had conversations about your shared retirement, life can throw unexpected curveballs at you. Maybe your company is folding and you don’t want to start over elsewhere. Or, as retirement eligibility draws closer, you may realize you want to keep working while your spouse can’t wait to leave the daily grind behind. Whatever the reason, retiring ahead of your spouse can present unique challenges. Here are five important financial and emotional considerations to plan for.
5 Things to know if you’re retiring before your spouse
1. You might not need your savings or Social Security just yet
If your partner will continue earning income, you might be able to postpone when you tap some (or all) of your nest egg. You aren’t required to start taking distributions from tax-deferred retirement accounts, including 401(k)s and traditional IRAs, until age 73. And while you can begin taking Social Security at 62, it’s by no means a requirement. In fact, delaying it will lead to a larger benefit.
Don’t make the mistake of claiming your Social Security early because your friends or family members did. You really should make this decision based on what’s financially best for you and your partner.
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2. You may have to revisit your spending plan
Transitioning to a one-income household will probably affect your monthly budget. The challenge is that most retirees tend to spend more early in retirement because they now have all this free time they didn’t have when they were working. It can feel like a perpetual weekend or extended vacation, which makes it easy to spend more money.
How will you fill your days when you’re no longer working? It’s an important consideration. Whether you’re hitting the golf course or going to yoga class, if your hobbies cost money, you’ll need to make sure your activities align with your income streams.
3. Your household dynamic will likely change
You can expect your day-to-day routine to shift when you retire. Instead of getting dressed and beginning your workday, you’ll likely have hours of free time. Meanwhile, your partner will continue working—and that could be a big source of friction. The spouse who is still working may expect you to take on more responsibility around the house, or they may feel resentful that you’re enjoying more leisure time while they work.
Retiring before your spouse can also put financial pressure on your partner if you’re both relying on their income. On your end, you might feel lonely in retirement and resent your partner’s work life. You can set yourself up for a smoother retirement by having an open and honest conversation with your spouse. You may want to discuss:
- How do you plan to spend your time when you stop working? How does your spouse feel about it?
- Will household responsibilities change?
- How will your financial life be impacted if you stop working?
- If you are added to your spouse’s health insurance plan, how will that affect their take-home pay?
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4. It can be an opportunity to improve your relationship
It’s easy to get burned out when both partners are working full-time. Retiring frees up time that you can spend recharging your batteries. You might prioritize rest, enjoy leisure activities, and choose to take certain tasks off of your partner’s shoulders. If they’ve always handled the cooking, for example, now may be the time to step in and do that for them.
The right dynamic for you will depend on your relationship, but the idea is to establish a give-and-take to help each other adjust to your situation. It might lead to less stress and fewer conflicts, especially if you’re committed to spending quality time together.
Social Security is an important part of your financial plan.
Your financial advisor can show you how Social Security will work to reinforce your retirement savings. And they’ll show you how it can help you live the life you want in retirement.
Let's get started5. You may need to rethink your purpose
Many people derive a sense of identity and purpose from their work. When you retire, it’s important to find meaningful ways to spend your time. If your partner is still working, it may feel like you’re navigating that on your own.
A good way to begin is by asking yourself why you’re retiring before your spouse. Maybe you’re burned out, or you want to spend more time with your grandchildren. But without a clear reason, you might struggle to find a sense of meaning and purpose in retirement.
The following activities can be good jumping-off points:
- Volunteering
- Mentoring
- Consulting or working part-time
- Taking up meaningful hobbies
- Spending time with friends and family
Retiring before your spouse will likely affect your finances and your home life, but that doesn’t have to be a negative thing. Making a plan and keeping the lines of communication open are key. Your Northwestern Mutual financial advisor can help you iron out the details so you can enter retirement feeling confident—no matter which one of you retires first.
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.
