The Mint app has shut down as of Jan. 1, 2024. For alternatives, check out CNBC Select's ranking of the best budgeting apps.
Some people envision their retirement years as their chance to finally explore the world, visit resorts and spend their days peacefully on the beach. Others think their perfect retirement looks more like staying close to their family and grandchildren and picking up hobbies they never previously had the time for.
It's important to have an idea of what retirement could look like before you actually hit your golden years and leave the workforce. Knowing what you and your spouse want to do in retirement can help you figure out how much money you'll need in order to keep that lifestyle afloat when you're no longer working.
"For many people retirement is not a destination, but a point at which lifestyles change and priorities shift," says Amy Richardson, a CFP with Schwab Intelligent Portfolios Premium. "For example, perhaps you love traveling and retirement provides the time and flexibility for you to travel more often. If you haven't planned for this before you retire, you may not have enough saved to take those dream trips!"
One of the first steps for saving for retirement is to track your expenses and create a financial plan. Tracking your expenses can help you figure out your "retirement number" (a.k.a., how much money you need to have saved or invested before you can enter retirement). This is because once you're retired, you'll need to know how much money you should be spending each year to ensure that your savings and investments will keep you afloat for the rest of your life.
And if you know exactly what you'd like to do during your retired years, you can add these activities and experiences to your financial plan and include them when calculating your retirement number. Getting started can be so much easier with an expense tracking app like Mint or You Need A Budget (YNAB). They connect to your bank account and categorize your expenses so you can get a much more accurate depiction of what you enjoy spending money on (this could provide clues for what you might spend a lot on in retirement).
Of course, you'll also want to make sure you and your partner are investing your money in tax-advantaged accounts like 401(k)'s and Roth IRA's — Wealthfront and Betterment make this easy to do since they're robo-advisors that can pick investments for you based on your time horizon, risk tolerance, retirement age and goals.
If you and your partner both have the same ideal image of how you'll spend your retirement years, great! But sometimes, not every spouse shares the same retirement goals as their partner. There could be a disagreement about how often the two of you will travel in retirement, or whether you'll relocate or stay put — or even at what age you'd both like to enter retirement.
In this case, Richardson reinforces the importance of being completely honest with your partner about what you really hope your retirement years together look like.
"The key is to be transparent and make sure that you have built any goals into your budget," she explains. "Avoiding this conversation will have a far greater impact on a couple – beyond just your wallet. It can lead to tension and debt if a partner moves forward with spending that hasn't been planned for."
After having this discussion, the next best step is to figure out appropriate ways to create compromises. Remember that you are both part of a team and should each avoid taking on a "my way, or the highway" attitude, which can lead to resentment if one partner feels their needs aren't going to be met.
Also keep in mind that while you will live with and retire with your partner, you may find additional comfort in leaning on other loved ones — siblings, grandchildren, adult children, cousins, friends, etc. — to enjoy certain experiences with you that your spouse would rather not participate in. This can help you feel like you aren't totally giving up something that is important to you since you can still find a way to enjoy it with other loved ones.
"It is critical that you're both willing to compromise and stay committed to ensuring that each partner gets to have the experiences that are most important to them," Richardson says. "You can decide what things you will do together versus with other friends or family members. This may look like a trip together once a year as a couple and an additional trip with friends/family for the spouse who desires more travel."
If you're having trouble finding a way to create compromise, it may be helpful to speak to a financial professional, like a CFP, as a couple. Financial planners can take a look at your overall financial health and offer a perspective that you may not have considered yet.
Bottom line
Retirement planning can be so much easier when both you and your spouse are on the same page about what your golden years will look like and approximately how much money you might need. But if you have different ideas about what you'd like to do in retirement, Richardson recommends being honest about your thoughts and seeking ways to compromise so that both partners can feel like their needs are being acknowledged.
