- Start with shared retirement goals and expectations.
- Build a savings plan using the accounts available to you.
- Plan for income, health care and Social Security needs.
- Revisit your plan over time and get professional help if needed.
Saving for Retirement as a Couple: What to Consider
If you're married or in a long-term relationship, retirement planning can't be done alone; rather, it's a team effort. Your finances and the steps you take now to save will affect you, your partner and your loved ones. It will also affect your ability to travel or indulge in your favorite hobbies.
Key Takeaways
The earlier you begin conversations about your retirement goals, the easier and less stressful it can be to turn your plans into reality. That’s why retirement planning for couples often starts with shared expectations before it moves into savings targets.
Quick takeaway: If you’re wondering how much does a couple need to retire comfortably, the answer depends on your housing costs, health care needs, desired lifestyle and expected income sources.
Create your shared vision for retirement
Planning for retirement starts with honest, frank conversation. The talk should go beyond numbers, to what you each hope for in retirement. For example, how long do you think you'll want to keep working? Will you retire together or at different times? Do you want to move, and to where? A little house near the beach? An apartment close to the grandkids?
Your initial thoughts may change. But formulating a vision for your ideal retirement can help you plan for the money you’ll need to make your dreams a reality.
Build a savings strategy
Armed with an initial idea for your retirement, you can now focus on saving and planning for your new life. Depending on your situation, you may use one or a combination of the following:
- Employer-sponsored retirement accounts: Employer-sponsored retirement plans, such as a 401(k) plan, are some of the most commonly used retirement planning tools. They are investment accounts. You can choose to invest in mutual funds, exchange-traded funds, stocks or bonds – and often in a combination of those.
- Individual retirement accounts (IRAs): If you don't have access to an employer-sponsored account, or simply want to supplement what one provides, you can open an IRA. Offering similar tax advantages to 401(k) plans and the like, these accounts allow you to invest for your future but aren't tied to your employer.
- Annuities: Annuities are a type of financial contract that issue installment payments to provide you with a steady source of retirement income.
- Health savings accounts (HSAs): Some people use HSAs as another supplemental tool for retirement planning. They offer triple tax advantages. Contributions to an HSA are made with pre-tax dollars, the money in the account grows tax-free and withdrawals made for qualified health expenses aren't taxable as income.
Building a joint plan? It can help to review which accounts each partner has access to and how those accounts may work together over time. It also may help to explore retirement planning further.
Estimate your retirement income needs
Consider how much you make as a couple, and what expenses you're likely to have in retirement. Common expenses include mortgage payments, utilities, transportation, travel and taxes. If you have other expenses you'll need to cover – such as a mortgage on a vacation property or pricey hobbies – you may need to save a larger sum.
How much money does a couple need to retire? The answer will vary, but estimating monthly expenses, expected retirement age and available income sources can help you set a more realistic target.
A snapshot to start with:
| Planning area | Why it matters for couples |
|---|---|
| Housing and utilities | Your ongoing living costs can shape how much a couple needs to retire comfortably. |
| Health care and long-term care | These costs may rise with age and can affect how much money you’ll want set aside. |
| Travel, hobbies and family goals | Your lifestyle choices can influence retirement income needs beyond basic expenses. |
| Guaranteed and investment income | Knowing where income will come from can help you estimate withdrawal needs and timing. |
Factor in health care and out-of-pocket costs
Health care costs can be a significant expense. While baseline Medicare (sometimes called Original Medicare) can be invaluable, it doesn't cover all of your health care expenses. You’ll probably want to add extra-cost Medicare Advantage coverage. Sold by private insurers, Advantage plans provide prescription drug coverage and additional benefits like vision, dental and hearing.
Finally, you need to think about other expenses like the cost of long-term care or assisted living.
Quick tip: If you hope to retire before you turn 65, when Medicare kicks in, you need to plan – and budget – for health care coverage until you’re eligible for federal coverage.
Optimize spousal benefits and Social Security income
Social Security plays an important role in many retirees' plans. You can usually begin receiving benefits as early as 62, but waiting until 67 – the program’s full retirement age – or later may make more sense for some people. If your spouse was a stay-at-home parent, they may be eligible for spousal Social Security benefits.
You can use the Social Security calculator to estimate your payments at different retirement ages. Reviewing those estimates together can be helpful when retirement planning for couples, especially if one partner expects to retire earlier than the other.
Thinking of investing? Or part-time work? Explore the different ways you can earn retirement income.
Adjust your plan for different scenarios
No matter how carefully you plan, life has a way of throwing obstacles or changes in your path. You may need to adjust your plan if your circumstances change. For example, if you become widowed. Without your partner, you may need to offset their income, pension or Social Security benefits.
You can minimize the financial loss by ensuring you and your partner have adequate life insurance coverage. If you pass away, a life insurance policy pays out a death benefit to your spouse (or other named beneficiary), which can help them live in comfort.
Also consider estate planning, and what kind of legacy you want to leave. For instance, if you want to provide an inheritance for your grandchildren, or leave money to a charity, you'll need to keep those plans in mind. Consider a whole life insurance policy to help you build a strong financial foundation.
Consider getting professional advice
The complexity and uncertainty of retirement planning makes it a good idea to consider enlisting professional help. Certified financial planners, financial advisors, and insurance agents and representatives can provide critical advice and guidance based on your unique situation.
A financial planner or advisor can help you decide how much money you'll need to save to retire comfortably, how to invest your money to achieve those goals, how to adjust your investment portfolio and what insurance products you may need. Professional guidance may help you turn rough estimates into a practical plan.
An insurance agent or representative can help you review your life insurance and annuity options and choose the right coverage. And, they can help you decide if you need long-term care insurance or other forms of coverage.
Even if you feel comfortable handling your initial retirement planning on your own, working with a professional for occasional check-ins can help you stay on track.
Planning for retirement together
Retirement planning involves more than numbers. It involves a coordinated effort between you and your partner to build long-term security and peace of mind. By aligning your goals, developing a savings and investment strategy, and preparing for different possibilities, you can confidently approach your retirement.
However, don't be afraid to bring in outside help. Financial professionals can help you shape your plan and ensure every detail is covered, so you and your partner can achieve your goals.
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FAQs for saving for retirement as a couple
There isn’t one universal number. How much a couple needs to retire comfortably depends on housing, health care, debt, lifestyle goals and when each person plans to retire.
Goal setting, account contributions, income planning, health care budgeting, Social Security timing and estate planning.
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