Boone beat cancer — twice
Should you retire with separate bank accounts? Is it OK to have separate money and then just share the expenses in retirement?
Often couples who are starting over in a new relationship and entering retirement find it more advantageous to keep their money separate. I definitely agree. If you are not married and want to maintain your independence, combining assets only to have to untangle them later due to a messy split is not good for your pocketbook or your mental well-being.
Retirement is generally viewed as a “couple event,” but that doesn’t mean you have to add the complexities of financial entanglement with someone new. A pre-nuptial or cohabitation agreement is always recommended for single retirees who are planning a future with someone new. It is vital to protect your assets and agreements should favour both parties, bringing clarity to your union and your combined assets.
There are usually a lot more variables to consider when you are starting again at an older age. Do not discount the advantages of a pre-nup. Instead, think of it as a framework that is best for your future together.
On the other hand, if you are NOT starting over and have been married a long time, but still have separate accounts, investments and money, my first question is: Why? If you plan to retire together, you need to manage your money together. It is important both partners be involved in the financial decision process. You must save and dissolve your debt together, especially if you created it together.
The most financially successful couples are those who combined their incomes, working together to spend and save for their future. Those couples who keep their finances divided or secret with separate accounts and liabilities are usually always worse off. One partner is always languishing and the debts tend to get higher while the savings never grow.
A good rule of thumb is: If you want to retire debt free and wealthy, you must work together for a common goal. Dream together, plan together and remove uncertainties together!