Amerprise Study Reveals Gaps in Retirement Planning for Couples

Newly retired American couples struggle with retirement income planning despite shared financial goals, highlighting the need for open communication and comprehensive planning.

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Amerprise Study Reveals Gaps in Retirement Planning for Couples

Amerprise Study Reveals Gaps in Retirement Planning for Couples

A recent survey by Ameriprise Financial has shed light on the retirement income planning challenges faced by newly retired American couples. The study, which polled over 1,500 couples aged 45-70 with at least $100,000 in investable assets, found that while most couples share similar financial values and goals, they often fall short when it comes to comprehensive retirement and estate planning.

According to the research, 95% of couples trust each other on money matters and 93% agree on overall retirement goals. However, nearly a quarter (24%) have not reached a consensus on how much to save for retirement or the amount to allocate to children and grandchildren. Additionally, 25% have differing estimates on retirement spending for hobbies and travel, while 22% disagree on overall lifestyle spending in retirement.

The survey also revealed discrepancies in retirement timing among couples. While 87% of retirees believe they retired at the right time, only 11% retired simultaneously with their spouse. A majority (62%) staggered their retirements by at least a year. Unexpected circumstances such as health issues or layoffs were cited by 31% of retirees as the reason for retirement, while 51% retired after achieving a financial or life milestone.

Why this matters: The findings highlight the importance of open communication and comprehensive planning for couples approaching retirement . Aligning on financial goals, retirement timelines, and estate plans can help ensure a smoother transition and reduce potential conflicts down the road.

The study exposed significant gaps in retirement preparedness among couples. Over half (52%) have not established an estate plan, 41% lack a financial plan, and 39% have not determined how to recreate their paychecks in retirement. Furthermore, while 72% of couples provide financial support to adult family members, 14% are not on the same page about the amount.

Marcy Keckler, a financial advisor at Ameriprise, emphasizes the importance of estate planning for everyone, regardless of age or assets. "Estate planning is a critical component of any comprehensive financial plan," Keckler said. "Working with a financial advisor and estate planning attorney can ensure your wishes are carried out and provide peace of mind for you and your loved ones."

The Ameriprise research highlights the need for couples to have open and honest conversations about their financial goals, retirement timelines, and estate plans. By working together and seeking guidance from financial professionals, couples can navigate the complexities of retirement planning and build a secure financial future.

Key Takeaways

  • 95% of couples trust each other on money, but 24% lack consensus on retirement savings
  • 87% of retirees believe they retired at the right time, but only 11% retired simultaneously
  • Over 50% lack an estate plan, 41% lack a financial plan, and 39% lack a retirement income plan
  • 72% provide financial support to adult family, but 14% disagree on the amount
  • Comprehensive planning with a financial advisor can ensure a smoother retirement transition