1 Important Conversation to Have With Your Spouse Before Retirement

Much of what you read about preparing for retirement involves the financial nitty-gritty of how to accumulate the money to fund your Golden Years. But that can sometimes cause you to put the cart before the horse, especially if you haven't thought about what retirement might actually look like.

Most people live their working lives according to things outside their control, such as their children (and their needs), careers, and so forth. But retirement is about freedom, living your life on your terms in a way that might be new to you or your spouse.

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That's why, before you retire, you and your spouse should discuss each other's vision for retirement. Like a compass guiding a ship at sea, a shared vision can ultimately help you reach your financial destination. When you do talk, come together to answer three essential questions:

1. When do you want to retire?

It's a basic question, but you can't go far without knowing the answer. Having a time frame for retirement jump-starts your planning efforts because it gives meaning to the progress you've made thus far and shows you how far you still need to go. Want to retire in your 50s? You'll need to plan far differently than if you were expecting to work until your late 60s.

There are also financial implications depending on your retirement age. Do you plan to claim Social Security retirement benefits? Retirees are eligible as early as 62. However, the age you claim and whether you've accumulated the appropriate credits can impact your benefits. You must weigh your work history, health, goals, and financial situation to determine when retirement makes the most sense for you and your spouse.

2. Are you on track?

Once you know when you want to retire, you can look at your present financial situation and determine whether you're on track, ahead of the game, or need to make up ground. How much money should you and your spouse have to retire?

According to Fidelity, a broad rule of thumb is to have 10 times your salary saved by 67. That's the full retirement age (to claim full Social Security retirement benefits) for anyone born in 1960 or later. This rule assumes you maintain your pre-retirement lifestyle. You can adjust this goal higher or lower depending on how you plan to live in retirement.

Are you on track? Fidelity recommends some investing at least 50% of their savings in stocks strive to save:

• 1x their salary by age 30
• 3x by age 40
• 6x by age 50
• 8x by age 60

You might need more if you'd like to retire earlier. Remember, it's OK if you're behind where you want to be. Understanding where things stand is always the first step to closing that gap. Don't hesitate to consult a professional financial advisor for help building a personalized plan for you and your spouse.

Image source: Getty Images.

3. Where do you want to live?

Don't let this question slip through the cracks. Many people view moving somewhere they've always dreamed of as the ultimate retirement accomplishment. For example, someone who spent decades in a cold climate might crave warm beaches. Perhaps you live in a small town or a big city and want a change of pace. Or maybe you want to enjoy retirement on the road and travel the country in an RV.

Whichever you choose, consider the financial impact on your retirement plan. You and your spouse will want to do the homework to ensure you're not preparing to retire based on where you currently live, only to move somewhere with dramatically higher home prices, taxes, or living expenses. You don't have to lock in your retirement plans years ahead.

Talk to your spouse to determine what the possibilities might be -- your dreams and aspirations. Then, do your research and adjust your retirement plan as needed. That way, you'll avoid unpleasant surprises derailing your plans after you've stopped earning a working income.

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