Retirement is a significant milestone and planning it with your spouse requires careful consideration of combined expenses and lifestyle goals. Whether your spouse is the only family you have in the later years of your life, or you want to prioritise your superannuation finances with them, planning a retirement with your spouse can look significantly different than planning it for yourself.
Here’s how you can determine the ideal retirement corpus for a comfortable life together.
Assess Combined Expenses
Begin by evaluating your joint monthly expenses. This includes everything you will prioritise in your superannuation days, from your routine expenses such as groceries and utilities, to healthcare, travel, and more.
Project these expenses over the expected years of retirement, accounting for inflation, typically 6-7% in India.
Use a Retirement Calculator
A retirement calculator helps estimate the total corpus needed. Input both partners' current ages, expected retirement age, life expectancy, and monthly expenses. The calculator will give you a clear idea of how much you need to save. For example, if your combined monthly expenses are ₹70,000 and you plan for 25 years of retirement, the corpus needed would be significant.
Plan for Inflation and Returns
Inflation can erode purchasing power, so it’s crucial to adjust your corpus accordingly. At the same time, factor in the returns from your investments. A diversified portfolio that includes equities, fixed deposits, and an annuity plan, can provide growth while offering protection.
Explore Joint Retirement Plans
Consider joint retirement plans offering income for both spouses. These plans can provide a steady stream of income during retirement, ensuring that both partners are financially secure. Some plans also offer life cover, which can be beneficial if one spouse passes away. One example could be a joint annuity or joint life insurance plan covering both lives to benefit the survivor.
A well-planned retirement corpus for you and your spouse ensures you can enjoy your golden years without financial stress. Plan in accordance with your requirements while making use of the resources available to ensure a comfortable retirement for you as well as your spouse.