“I want to live by the beach,” said his wife. “I want to live in the mountains,” said the husband. Differences of retirement plans typically exist within the same family. One person may wish to retire in a different environment than the other. Many of our clients come to their complimentary initial consultation without a complete understanding of their spouse’s desires for retirement. Simply because someone is married to another person for many years does not translate to an understanding of that person’s long-term goals and dreams. Communication is critical in all relationships, in a couple pondering retirement plans it is vital.
To help our clients resolve differences of opinion, and desires about retirement, we developed an approach that addresses the three “E’s”: Environmental, Economic and Emotional. To fittingly address the needs of each of the partners, these three “E’s” provide a comprehensive background for each to gain a deeper understanding of the other. This article will provide you considerations for each of the three components of retirement planning.
Environmental considerations are critical due to the impact your surroundings play in the overall happiness and health of a person. For example, scientists have proven that environment affects a person’s overall satisfaction in life attributed to their surroundings. Some people are happier in sunny, warm climates while others enjoy the cold, harsh tundra. By understanding your partner’s thoughts on environment, each of you will gain knowledge about the type of surroundings desired by the other. We work with a client who enjoys mild weather and sandy beaches. To compromise, we divided the year into quarters and accommodated her wish for salty water in the winter and his mountainous terrain for game hunting in the fall of each year. They remain content at their primary residence for six months of the year during seasons that are not extreme. Compromise is the key and extending understanding with a mindset of flexibility helps with the creation of a joyful retirement.
Economic factors contribute to the retirement quality of all of us. Considering that you have accumulated more than a sufficient amount of assets to live anywhere you wish, economic factors play less of a role in the retirement decision process. However, lets assume you have saved but may have some cash flow difficulty in the future. It is necessary to consider all means of support and the term in which that support will be available. As presented in our last article, the location of your retirement home will be a considerable outcome based on your economic means.
After considering environmental and economic factors, the most influential of these three factors, emotional, must be broached. To illustrate the power of emotions in decision making, we will share this short story. Tom and Linda decided to retire. Tom had his mind made up that he would retire in the mountains with a cabin and enjoy the land around him for his ideal retirement. Linda, often submitting to Tom’s decisions, was in misery in the mountains. Her asthma, allergies and other minor health conditions only worsened in the humid, hot summers in the mountains. She tolerated the first couple of years in the mountains and simply decided to make her wishes known to Tom. After a deep discussion of all the desires for her retirement, it was decided that they would share their time in retirement between the mountains and her beachfront condo she had been dreaming about for many years.
Compromise and consideration of the environmental, economic and emotional factors of retirement will yield the most effective choice for couples. The transition time to retirement is difficult for many people. Seek out someone who understands the needs and desires of retirees as well as possesses the expertise to help design and execute a plan that is pleasing to both partners. Life is short. Focus on these three factors and live life on your own terms!