Couples in sync on retirement goals, but at odds on specifics

Couples in sync on retirement goals, but at odds on specifics
Survey shows that despite having shared values, couples have conflicts and gaps around retirement savings, expenses, and estate plans.
APR 18, 2024

New research from Ameriprise shows that while American investors who are in committed relationships trust each other with financial decisions and share similar retirement aspirations, many have not fully discussed or agreed on crucial financial details.

The study, which surveyed more than 1,500 American couples with substantial investible assets, reveals gaps in planning and consensus, particularly around retirement spending and estate planning.

The research primarily targeted couples ages 45 to 70, including both recent retirees and those planning to retire within the next decade.

"Our research shows couples trust one another and share the same dreams for retirement, but that doesn’t necessarily mean they’ve mutually agreed on how they’ll spend, save, and give away their money when the time comes,” Marcy Keckler, senior vice president of financial advice strategy at Ameriprise, said in a statement.

The findings paint a picture of trust and shared values, with 94 percent of couples reporting honesty and transparency in financial matters, and 91 percent affirming shared financial values.

Despite the high levels of trust, the study shows 24 percent of couples have not agreed on how much to save for retirement or future expenditures on children and grandchildren. Additionally, around 25 percent have different views on retirement spending related to hobbies and travel, and 22 percent differ on general lifestyle expenses.

When it comes to retirement timing, 87 percent of those who have retired felt they chose the right moment, though staggered retirement is common, with only 11 percent retiring at the same time as with their spouse or partner.

The study also found that 31 percent of retirees left the workforce as the result unexpected circumstances, such as health issues or layoffs, while 51 percent retired after reaching specific financial or life milestones.

“Some couples avoid discussing these topics because they feel overwhelmed – especially knowing that unexpected events can happen at any time – but putting it off can lead to challenges down the road," Keckler said.

The research also highlights couples' hesitation around essential financial discussions, with 52 percent of those surveyed lacking an estate plan and 41 percent not having a comprehensive financial plan. This delay in planning could create tension, as shown by the 14 percent of respondents who admitted to having a secret account their partner doesn’t know about.

Couples who have been together for more than two decades report higher alignment in financial goals. The study offers some insights from these long-term relationships, suggesting that open communication about financial goals, finding amicable resolutions to financial disagreements, and jointly choosing a financial advisor can enhance financial harmony.

"Couples who are delaying important conversations or who are unable to communicate openly about money tend to have more difficulty planning for the future together,” Keckler said. “Thankfully, there is a lot they can learn from other couples who’ve navigated the path to retirement smoothly."

Here’s why family governance plans are key for estate planning

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