Especially in cases where they are likely to outlive you, it is important to ensure your spouse will have the assets they need to retire when the time comes. Here are some simple tips for securing retirement for your spouse.
Maximize Spousal Benefits
First of all, maximize the spousal benefits of Social Security, pensions, and annuities. If you have the option of taking a lower payout so that your spouse gets money from a pension plan after you die, opt for the lesser portion now so your spouse continues to benefit from the plan.
It could also be a good idea to delay Social Security so your spouse has more to live off of when it comes time to retire. You can choose when you would like to begin receiving Social Security benefits. Retiring early will reduce your benefits, so think carefully with your spouse about when you would like to retire.
Life Insurance
Life insurance is another way to secure retirement for your spouse. If you were to die prematurely before saving enough for retirement, your spouse can be left with little money to retire on. Life insurance can make sure your spouse has enough assets to retire on.
When you retire, you may lose the life insurance plan you had through your employer, so looking for a different plan ahead of time is a good idea. Consider choosing a life insurance plan sooner rather than later in order to get the best deal. As a general rule, life insurance premiums of all kinds will be much cheaper when you’re young.
Spousal IRA
A spousal IRA is a great way to put money aside for your spouse’s retirement and assure that they will have what they need once they reach retirement age. Usually, in order to contribute to an individual retirement account, you must earn an income. If your spouse does not, he or she can still benefit from a retirement account.
With a spousal IRA, one working spouse can contribute money to an account in the name of a non-working spouse. Both spouses simply need to file taxes jointly and one spouse must have the income to cover both IRAs. You can double up on retirement savings even if your relationship only includes one income.
No matter your situation, there are many ways to make sure your spouse has enough money and assets for a comfortable retirement. With spousal IRAs, life insurance plans, and spousal benefits out there, you have plenty of options when it comes to securing retirement for your spouse.
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