One assumption that is often made when financial planning is that couples will stay together in retirement. Unfortunately for more and more families, this is not the case.
When I mention this to new clients, I usually get an awkward grin. This is normally followed by a nod of agreement when I explain that I’m not talking about divorce, but rather the lack of facilities for elderly couples when one person needs care and the other doesn’t. In most cases the couple has to be split, this often results in increased costs.
When planning, I never count on a couples principal residence as an asset to be used in retirement. I prefer to use it as a safety valve in case I need to tap into the equity to maintain a second place of residence.
I know there are many people who are counting on the equity in their homes to help fund their retirement, but I caution you not to. If you really need the equity to retire on, I suggest you work a little longer and leave it alone. With people living longer, I think for most, it should be the last place to look for retirement income.