Retirement not on the menu for dating couples
Forget the champagne and roses, what about retirement plans?
Believe it or not, talking about retirement isn't one of the top conversations for dating couples.
In fact, only 28 per cent of Canadian couples say they shared their plans for retirement with each other before getting married.
And those who did discuss their plans figure they need at least $1 million to fund their retirement years.
BMO Bank of Montreal released its annual Valentine's Day RRSP study which found that fewer than one-third of couples actually discuss their retirement plans before tying the knot.
Apparently many feel -- about 20 per cent -- that differing views on retirement could result in a break-up so the topic is avoided.
Chris Buttigieg, Senior Manager, Wealth Planning Strategy, BMO Financial Group, explains, "While discussing plans for retirement may not be one of the most romantic things to do during the courtship phase of a relationship, it's important that couples share their thoughts with each other before getting too serious.
"You could be spending 30 years with your partner in retirement, so it's important that you determine early on if you're on the same page."
The study also revealed that 86 per cent of couples who are in a serious relationship or who are married have discussed their retirement plans. However, fewer than half of those have talked about the finer details like how much they will save for retirement, what their dream retirement will look like, where they will live in retirement, and whether they will need to downsize.
But the magic number for Canadian couples funding retirement seems to be about $1 million.
"Canadians need to remember that the amount they'll need to save for retirement will depend on their desired lifestyle," says Buttigieg. "Your ideal retirement may be quite different from someone else's. It's especially important for couples to discuss what their expectations are and then develop a financial plan that includes a retirement savings component."
Now that's true love!
By Donna Donaldson, MSN Money
Would you consider discussing retirement plans before getting married?