When it comes to retirement planning, everyone’s situation will be different and present its own unique challenges. A few examples of common unique situations include unmarried couples living together and retirement planning when a special needs child is involved.
Roughly half the U.S. adult population is unmarried, with many unmarried couples living together in domestic partnerships. There are many financial differences between a marriage and a domestic partnership, with married couples often being able to enjoy benefits that domestic partners don’t. For example, married couples have access to spousal IRAs and can be better protected if their spouse dies without a Will.
The absence of these types of benefits can create special challenges when it comes to financial planning for unmarried couples. Perhaps the biggest challenge is the fact that rules and laws regarding domestic partnerships vary greatly from state to state. That’s why it’s essential for unmarried couples to work with a qualified financial advisor who can help them understand the unique challenges and opportunities that can present themselves to those involved in a domestic partnership.
Planning when a special needs child is involved
In most cases, providing financially for a child ends when they’re in their 20s. However, if you have a special needs child, your financial support may never end. This can have a major impact on your retirement goals and the income you’ll need to help achieve them.
Another issue is Social Security. Choosing the right strategy for taking your benefits can be a complex and challenging decision. Unfortunately, it can become even more complicated if you have a special needs child. With multiple life expectancies, health factors, and other issues to consider, an already complex decision can get much more complicated. If your child’s disability began before the age of 22, they may be eligible for Social Security disability insurance—which can be a big help when it comes time to determining what your income needs will be in retirement.
These are just a couple examples of unique situations. The good news is that regardless of what situation you might face, a financial strategy designed to deliver steady income in the form of interest and dividend payments can help you address your unique situation. This means you’ll be better prepared to enjoy a financially less-stressful retirement.