Retirement Planning for Couples in San Diego

• In addition to high housing and healthcare costs, shared income needs, inflation protection, and short- and long-term medical care should be considered by couples retiring in San Diego.
• Couples should plan for income changes in retirement, such as the timing of when a partner retires, how to withdraw from multiple retirement sources, and how to manage tax implications.
• Couples should also reflect on the non-financial aspects of retirement, such as how they will spend their time, where they wish to live, and how they will emotionally prepare for the transition.

If you plan to retire in San Diego, you may envision enjoying its vibrant culture, picturesque coastlines, and fun nights cheering on the Padres. Still, retiring in a high-cost area like San Diego comes with unique considerations, from managing rising housing costs to securing affordable medical care. It introduces additional planning for couples looking to make the most of their next chapter. In this blog post, we’ll walk through the common yet often overlooked financial and emotional factors couples should weigh when planning a San Diego retirement.

How Much Do You Need to Retire Comfortably in San Diego?

How much you need to retire comfortably in San Diego is unique to every couple and will depend on your expenses and income, as well as various financial areas, such as housing, healthcare, increasing life expectancy, taxes, and more. Pre-retirees should develop a plan that helps them maintain their lifestyle with guardrails to help ensure they don’t outlive their savings.

Other factors that will affect how much you need include whether both or only one partner is retiring or if you will still support dependents, adult children, or aging parents while in retirement. 

Keep in mind that spending will also change as you age, commonly referred to as the “go-go, slow-go, and no-go” stages of retirement. More spending typically occurs early in retirement and reduces in mid-retirement or as physical ability declines. However, while you may spend less on entertainment or travel, expenses could uptick again in the final years of your retirement if you require long-term care. A financial professional can help walk you through these scenarios and additional questions to calculate your ideal savings. 

How to Plan for Retirement as a Couple

Considering the expenses and scenarios noted above, there are several questions you and your spouse or partner can discuss while you’re planning to help anticipate your budget, as well as prepare for the non-financial part of the transition. Here are a few conversation starters:

• Will you stay in San Diego? The rising cost of living concerns pre-retirees and retirees, especially in states like California, with San Diego topping the list of most expensive U.S. cities. After reviewing your budget and anticipated cash flow, you may decide to downsize, refinance, relocate, or scale back on your expenses to ensure you can stay close to grandkids or elderly parents.
• How will you manage healthcare in retirement? If one spouse or partner is still working, you may consider employer-sponsored benefits or former employer benefits, or look into Medicare or private options if you’re not yet eligible. 

Planning for healthcare in retirement also includes costs for everyday expenses such as prescriptions and insurance premiums; long-term costs for medical devices or physical assistance; and unforeseen costs like unanticipated medical procedures, long-term care, or assisted living. We often guide clients to assess their current health while building a plan for emergencies, such as using their home’s equity or securing a long-term care insurance policy to help offset costs, if necessary.

• How will you spend your time in retirement? Now is the time to outline each of your goals to not only forecast your income and budget but also prepare emotionally for this new chapter. For example, will one spouse continue to work, and if so, how will the retired partner spend their time? What are your income needs? Do you plan to travel multiple times a year, start a business, or pursue a side gig?  

These factors will determine how you plan for your finances and the emotional transition inevitable with retirement. A financial partner can help you explore how you will achieve your goals and maintain your lifestyle but also highlight overlooked factors like building community, staying mentally engaged, and finding purpose.   

• What will your income look like in retirement? Managing income changes is another consideration for a couple retiring in San Diego, whether both retire or one continues working. Is your plan positioned to support going from a dual to a single income? Are your assets protected from inflation? Do you have several income sources, and how will taxes be impacted? 

A financial planner can walk you through various scenarios to help you build a withdrawal and income strategy that works for you, while considering inflation-protected instruments like bonds, real estate, and other methods.

Can a Financial Planner Help with Retirement Planning in San Diego?

Whether you plan to retire in San Diego or elsewhere, budget planning, income strategies, and healthcare considerations require your thoughtful attention. A financial advisor can help you navigate the factors encompassing your retirement.

We have a long history of helping clients transition to retirement in San Diego and around the world. Learn more about how we help pre-retirees and retirees align their retirement planning, income, and newfound free time to design a life they genuinely desire.