Do you know that most couples need between 70% and 80% of their pre-retirement income to keep up their current lifestyle after they retire? For example, a couple making $120,000 a year would need between $84,000 and $96,000 a year in retirement.
These numbers represent just one part of the retirement puzzle. The 4% rule, which many experts trust, suggests couples should save 25 times their yearly spending target before retiring. Healthcare costs add another layer of complexity. Citizens Bank research shows a 65-year-old couple retiring today needs around $330,000 just for medical expenses. The situation becomes more challenging as the Department of Health and Human Services expects 70% of people over 65 will need some type of long-term care.
Social Security gives couples an average of $47,400 a year, but this isn’t usually enough to live comfortably in retirement. The median income for retired couples aged 65 and up according to the 2022 US Census is $76,490 per year. This shows that many retirees need more than one source of income.
This piece gets into how much couples need for a comfortable retirement. You’ll learn about key expenses and smart strategies that help secure your financial future throughout retirement.
Are you losing sleep wondering if your retirement nest egg will be enough? You’re not alone. According to a recent study by Zety, a whopping 40% of Americans fear retirement more than death itself! And almost 9 out of 10 people say their biggest retirement fear is not having enough income.
As a financial blogger who has spent years studying this subject, I’ve noticed that planning for retirement is especially hard for couples. You have to think about two different people’s lifespans, healthcare needs, and possibly very different spending habits. So let’s look at the real numbers and give you some useful tips that can help you enjoy your golden years together.
The Shocking Truth About Average Retirement Savings
Before we talk about what you need let’s look at what most couples actually have saved. Brace yourself – the numbers aren’t pretty.
According to Vanguard data, here’s what the average 401(k) balances look like by age:
| Age Group | Average 401(k) Balance | Median 401(k) Balance |
|---|---|---|
| Under 25 | $6,718 | $2,240 |
| 25-34 | $33,272 | $13,265 |
| 35-44 | $86,582 | $32,664 |
| 45-54 | $161,079 | $56,722 |
| 55-64 | $232,379 | $84,714 |
| 65+ | $255,151 | $82,297 |
If both partners have been working and saving on their own while the couple is getting close to retirement, you might double those numbers. But even $500,000 is a lot less than what experts say you should have for a comfortable retirement.
What’s even more alarming? According to PWC research, about 25% of Americans have NO retirement savings at all. Zero. Zilch. Nada.
So How Much DO Retired Couples Actually Need?
The short answer: Most couples need between $1 million and $2 million saved for a comfortable retirement, depending on where they live and the lifestyle they want to maintain.
But let’s break this down further with some expert guidelines:
According to T. Rowe Price data, here’s what married couples should have saved based on their current household income:
For a 65-Year-Old Couple:
- $75,000 income: $675,000 (dual income) or $562,500 (single income)
- $100,000 income: $1 million (dual income) or $850,000 (single income)
- $150,000 income: $1.575 million (dual income) or $1.5 million (single income)
These numbers are about 9–11 times your yearly household income, which is the general rule for being ready for retirement.
The 4% Rule: A Simple Way to Calculate Your Number
The 4% rule is one of the most common ways to figure out how much you need. Here’s how it works:
- Estimate your annual retirement expenses
- Subtract expected Social Security and pension income
- Divide the remaining amount by 0.04
For example: If you need $80,000 per year and expect $39,000 from Social Security, you’ll need $41,000 from savings. Dividing $41,000 by 0.04 gives you approximately $1,025,000 in required savings.
This formula helps couples set clear savings goals. But be warned – if you withdraw more than 4% each year, your money might run out faster than expected.
Why Location Matters SO Much
Where you retire can make a $66,000 difference in your annual expenses! According to a GOBankingRates analysis, Hawaii tops the charts as the most expensive state for retirees, requiring a staggering $121,228 annually for a comfortable retirement.
On the flip side, Mississippi offers the lowest retirement costs at just $55,074 per year.
Here’s a sample of what retirement costs in different states:
- Hawaii: $121,228 annually
- California: $90,399 annually
- Florida: $68,109 annually
- Alabama: $56,769 annually
- Mississippi: $55,074 annually
Rural states generally offer more affordable retirement options due to lower housing costs compared to states with large urban centers.
Why Social Security Alone Won’t Cut It
As of 2025, retired couples collecting Social Security receive an average of just $2,910 per month – that’s about $35,000 annually. To put this in perspective, that’s roughly what you’d earn working a minimum wage job!
For most couples accustomed to a middle-class lifestyle, this simply won’t be enough. And with many older Americans carrying more debt into retirement, those Social Security dollars get stretched even thinner.
The truth is, Social Security was never designed to be your only source of retirement income. It typically replaces only about 40% of a median wage earner’s pre-retirement income.
The Big Three Expenses in Retirement
When planning your retirement budget, these three categories will likely eat up most of your money:
1. Housing
Housing costs make up about 36% of most retired couples’ budgets – approximately $21,445 per year or $1,787 monthly. Even if you’ve paid off your mortgage, you’ll still face property taxes, homeowners insurance, maintenance, and utilities.
Downsizing can be a smart financial move. By selling a larger home, couples can free up equity and potentially qualify for tax breaks (married couples can exclude up to $500,000 in capital gains).
2. Healthcare
This is the expense that catches most couples off guard. On average, retired households spend $8,027 yearly ($669 monthly) on healthcare. But the total lifetime cost is much higher – Fidelity’s 2024 research shows a 65-year-old couple needs around $330,000 saved just for healthcare expenses through retirement!
And that’s not even counting long-term care, which about 70% of Americans over 65 will need. A private room in a nursing home costs approximately $116,800 per year.
3. Lifestyle & Discretionary Spending
After working hard all your life, you deserve to enjoy retirement! Travel, hobbies, entertainment, and gifts to family members all add up. Active retirees should plan to increase their overall retirement budget by about 15% compared to those planning quieter retirements.
How to Actually Calculate YOUR Number
Since every couple is different, here’s my step-by-step process to figure out YOUR specific retirement number:
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Track your current expenses using bank statements or budgeting apps like Rocket Money or YNAB. These apps link to your accounts and show monthly spending totals.
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Adjust for retirement changes. Some expenses will decrease (commuting, work clothes, retirement contributions), while others may increase (travel, healthcare, hobbies).
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Apply the 70-80% rule. Most financial experts suggest couples need 70-80% of their pre-retirement income. A couple earning $100,000 would need $70,000-$80,000 in retirement.
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Use a retirement calculator to model different scenarios based on your age, savings, expected retirement age, and estimated investment returns.
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Consider working with a financial advisor for personalized guidance, especially if you and your spouse have different risk tolerances or financial goals.
The Scary Reality: Most Couples Are WAY Behind
Remember those average 401(k) balances we looked at earlier? According to EBRI research, as of January 2020, American households had saved $3.68 trillion LESS than what they should have in their retirement accounts.
Let that sink in for a moment.
Even more concerning, the median savings for couples aged 65+ is only around $164,000 (doubling the individual median). That’s nowhere near the recommended amount for a comfortable retirement.
5 Practical Steps to Boost Your Retirement Readiness
If you’re feeling behind after reading all this, don’t panic! Here are five actionable steps you can take right now:
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Max out catch-up contributions. If you’re over 50, you can contribute extra to your 401(k) and IRA accounts.
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Delay Social Security. For each year you wait beyond full retirement age (up to age 70), your benefits increase by approximately 8%.
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Consider downsizing earlier rather than later to reduce housing costs and free up equity.
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Develop a withdrawal strategy that minimizes taxes. This might include tapping taxable accounts first, then tax-deferred accounts, and finally Roth accounts.
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Explore part-time work opportunities in retirement. Even earning $1,000 monthly can significantly extend your savings.
Final Thoughts: It’s Never Too Late to Start
I’ve worked with many couples who felt overwhelmed when they first saw these numbers. But here’s the truth – ANY improvement to your current situation is worthwhile.
Even if you can’t reach the “ideal” savings target, increasing your savings rate now, delaying retirement by a year or two, or adjusting your lifestyle expectations can all make a significant difference.
The most important thing is to have open, honest conversations with your spouse about your retirement vision and to create a concrete plan for getting there. After all, retirement should be something to look forward to, not something to fear more than death itself!
What’s your biggest retirement planning challenge? Drop me a comment below and let’s figure it out together!
Social Security benefits for couples
Social Security gives essential retirement income and replaces approximately 40% of a median wage earner’s pre-retirement earnings. The average monthly benefit for a retired worker stands at $1,975 as of 2024. Couples with dual benefits could receive about $47,400 annually.
The Social Security system offers several advantages to couples. Each spouse can claim benefits based on their own work record or receive up to 50% of their partner’s benefit, whichever pays more. A surviving spouse can receive up to 100% of their deceased partner’s benefit amount when one spouse passes away.
The timing of your claims matters substantially. Monthly payments increase by approximately 8% per year when you delay benefits until age 70. Benefits can drop by up to 30% if you claim before reaching full retirement age, which typically ranges from 66-67.
Lifestyle choices and discretionary spending
Retirees often spend more on non-essential items that boost their quality of life after retirement. These include travel, hobbies, entertainment, and gifts. Active retirees should plan to bump up their overall retirement budget by 15 percentage points compared to those planning quieter retirements.
Spending patterns change throughout retirement. Many expenses drop over time, but healthcare costs usually go up, which balances out the money saved in other areas.
How Much Money Does A Couple Need to Retire?
FAQ
How much money does a retired couple need to live comfortably?
A retired couple needs a comfortable income, generally between 70% and 80% of their pre-retirement income, but this can vary significantly based on their desired lifestyle, health, location, and pre-existing expenses.
What is a good net worth for a retired couple?
| Age Range | Median Net Worth | Average Net Worth |
|---|---|---|
| 55-64 | $364,270 | $1,564,070 |
| 65-74 | $410,000 | $1,780,720 |
| 75+ | $334,700 | $1,620,100 |
How much does the average retired couple spend?
The average retired couple’s annual expenses are roughly $75,000 to $80,000 or about $6,000 to $6,700 per month, although costs vary significantly by location and individual needs, with the largest expenses being housing, healthcare, and transportation.
Can a retired couple live on $5000 a month?
With the house paid off and no other major bills, it’s not expensive. But keep in mind that you’ll have to pay for insurance if you were getting it through your job, and since you’ll have more time, you’ll probably spend it on hobbies and travel more. For me, $5K per month would be a very comfortable retirement.
How much money does a couple need to retire?
No two retirements are the same. How much money a couple needs to retire depends on more than just income and savings. It also hinges on lifestyle expectations, healthcare needs, location, and retirement age. Building a realistic retirement budget is one of the most effective ways to ensure your savings last.
How much money should a married couple replace After retirement?
Most financial experts say couples should replace 70-80% of their pre-retirement income. This percentage makes sense because some expenses go away after retirement: A married couple making $100,000 yearly would need $70,000-$80,000 in retirement income.
How much money do retired couples make a year?
You might also consider the average retirement income for a couple. According to the U. S. Census Bureau, the median household income for retired couples aged 65 and over in 2023 was $84,670 per year, or about $7,056 per month.
What is a good retirement income for a 65-year-old couple?
The median income for couples aged 65 and up according to the US Census Bureau in 2022 is $76,490 per year, or about $6,374 per month. Would you and your partner enjoy a high-quality life on this level of retirement income? Your answer may vary due to many factors.
How much should you save for retirement?
Financial experts suggest couples should save approximately 7. 5 times their yearly income. Most couples aged 65+ have saved only about $255,151 for retirement. Your expected lifestyle, health considerations, and additional income sources help determine adequate savings.
How should a married couple budget for retirement?
For a married couple approaching retirement, few things carry more significance than knowing how much income they’ll need to maintain financial stability and live comfortably after they stop working. Budgeting for retirement involves estimating your post-retirement income and calculating your essential and discretionary expenses.