Second Timers in Retirement

Read More

Reaching retirement as a second time around couple can present a number of tricky issues. Planning how to manage money in retirement is complicated enough for any couple, but throwing relationship property issues into the mix makes it even more so.

The key issues for retiring second timers are:

  1. Should finances be managed separately or jointly and what are the implications?
  2. How should financial inequality be dealt with – that is, where one person has significantly more assets or income than the other.
  3. How can the needs of children and partners be met in a fair manner, especially on the death of one partner?

The answers to these questions depend on a number of factors, including how long the couple have been together, whether both partners have children from previous relationships, whether they have children together, and the degree of trust between them. It is essential to have legal advice so that estate planning issues can be dealt with at the outset and reviewed regularly. The outcome of this process will help guide how the key issues are addressed. For example, if partners wish to pass on their individual assets to their children on death, this may lead to assets and income being kept separate through retirement, including the share of the family home. A good estate plan will have the right balance between the interests of children and the interests of a surviving, possibly very elderly, partner. Keeping finances separate when there is inequality in assets and income, can lead to feelings of resentment, restriction and inadequacy. Sharing unequal resources requires a high level of commitment to a relationship but it can smooth the path for a much more enjoyable retirement.

Finding the answers to the key issues for second times requires good communication and professional advice.

Related Articles

Economy
Liz Koh

Budget Winners and Losers

The latest Government budget had something for everyone but while most households will be a few dollars a week better off, there are some clear winners and losers. In the winners’ corner are businesses, those on high incomes, and savers. The biggest losers are property investors who have built large portfolios financed partly by tax rebates.

Read More »

Top Up or Miss Out

The end of June is an important date for KiwiSaver members. The financial year for KiwiSaver runs from 1 July 2009 to 30 June 2010 and if you have contributed at least $1,040 to KiwiSaver during that time, you will be eligible for the full amount of Government tax credit to be paid into your KiwiSaver account in July.

Read More »

Responsible Investing

There is a worldwide trend for investors to want to make a positive contribution to the world by investing in companies that are socially and environmentally responsible. If you are passionate about the effects of climate change, the scarcity of food and water, and social or environmental policies in general, then you will no doubt wish to ensure that the companies in which you invest are going about their business in a manner that is consistent with your views.

Read More »

Helping You Live your retirement To the Max

Keep in touch

Fill in your details and we’ll get back to you in no time.