When fusing finances, couple prefer to get joint bank accounts (64%), mortgages (60%) and credit cards (50%), says new research from TD Canada Trust.
In contrast, only 36% of couples have joint financial plans. So here are some tips that will help your clients maintain household financial harmony:
For couples in their 20s. Younger couples often start combining finances when they rent an apartment together or work as one to tackle existing student debt. They should also talk about “saving and spending habits, financial goals, and credit history to determine if there is anything that may affect their ability to secure future loans together,” says Farrell Jones of TD Canada Trust.
“Next, she adds, “they should…create a household budget” to ensure they can meet goals like the purchase of a house.
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For couples in their 40s. These couples focus on debt payment as well, but they shift their main focus to raising kids and saving for retirement. They need to streamline their priorities so they can achieve their goals.
“Couples can…streamline by making…automatic, pre-authorized transfers into TFSAs, RSPs and kids’ RESPs,” says Jones.
Read: Majority don’t have RESPs
Some couples may choose to merge certain aspects of their finances, while retaining individual accounts for additional saving or discretionary spending. Whichever approach they choose, both parties must work toward the same goals.
Read: Help couples who argue about money
For couples in their 60s. Most people in their 60s have a solid financial base. But with fewer income-earning years remaining, couples need a clear picture of what their retirement looks like. That way, they can visualize the goals they’re working toward.
As their advisor, ask them whether they plan to spend time with family or travel. Budgets should be adjusted to meet evolving goals at this stage.
Read: Retiring Boomers want to keep their home, poll shows
Whether married or common-law, couples should also ensure their retirement savings strategy takes advantage of spousal RSP contributions.
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Get your newlywed clients on the same page
Most couples don’t discuss retirement before marriage