The ideal monthly retirement income for a couple differs for everyone. It depends on your personal preferences, past accomplishments, and retirement plans.
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 this much money help you and your partner live a good life in retirement? Your answer may depend on a lot of things. For example, $6,374 a month might be enough for someone who lives in Alabama, is healthy, and doesn’t owe a mortgage. But this same income might not be enough if you live in New York City and have high school grandchildren who depend on you.
This example highlights why a hyper-personalized approach is critical when calculating a couple’s target monthly retirement income. Here’s what to consider to help you determine your ideal amount.
Dreaming of those golden years but worried your nest egg might not be golden enough? You’re not alone. One of the biggest questions my readers ask is whether they can retire comfortably on $60000 a year. The short answer? Yes, it’s possible – but like anything in life worth having it requires some planning and maybe a few compromises.
I’ve spent countless hours researching retirement finances, and I’m here to break down exactly how couples can make $60K work in retirement. Let’s dive in!
Understanding What $60K Really Means in Retirement
Before we jump into the nitty-gritty, let’s talk about what retirement experts typically recommend. Many financial advisors suggest aiming for 70-80% of your pre-retirement income to maintain your standard of living after you stop working.
So if you’re currently bringing home $85,000 annually, you’d want around $60,000 in retirement – which puts you right at our target number!
However, that $60,000 needs to go further than you think. Let’s look at where that kind of money usually goes.
- Housing costs (mortgage/rent, taxes, maintenance)
- Healthcare expenses (a HUGE one many folks underestimate!)
- Living expenses (groceries, utilities, transportation)
- Debt payments (hopefully minimal by retirement)
- Fun stuff (travel, hobbies, spoiling grandkids)
How Far Will $60K Actually Go?
The median income for couples aged 65 and up in 2022, according to the census, was about $76,490 per year, or about $6,374 per month. If you want to make $60,000, you’ll need about $5,000 a month, which is a bit less than the norm.
But here’s the good news – location makes a MASSIVE difference!
That $5,000 a month will feel a lot better if you live in West Virginia or Oklahoma than if you’re trying to make it in California or Hawaii. If you can be flexible about where you live, you have a powerful tool for retirement.
The 4% Rule: Do You Have Enough Saved?
Let’s talk savings for a minute. Many people who plan their finances follow what’s called the “4% rule,” which says you can take out 4% of your retirement savings every year with almost no risk of running out of money.
Working backwards, if you need $60,000 per year and plan to follow this rule, you’d need approximately $1.5 million saved for retirement. That’s a big number!
But wait – don’t panic yet! Social Security will likely cover a chunk of your needs. The average couple receiving Social Security benefits gets about $36,000 annually. That means you’d only need to generate another $24,000 from your savings, requiring a more manageable $600,000 nest egg.
Real Talk: Making $60K Work in the Real World
I recently heard from a reader whose situation might sound familiar. She and her husband were bringing in about $99,000 before taxes while he was working. Once he retires, they’ll drop to around $65,000 annually from Social Security and pension payments.
They were terrified about making this work with their mortgage payment of $1,310, a car lease, and some credit card debt. They had about $160,000 in retirement savings but were trying to delay touching that money.
Sound familiar? Here’s my advice:
1. Pay Off High-Interest Debt ASAP
If you’ve got credit card debt carrying 18-25% interest, paying it off is an immediate priority. Even if you have to tap into some retirement savings to do it, the math usually works out in your favor.
2. Housing Matters – A LOT
Housing typically eats up the biggest chunk of retirement expenses. If possible:
- Consider downsizing to a smaller home
- Look at relocating to a lower-cost area
- Make sure your mortgage is paid off before retirement
If your mortgage payment is taking up more than 25-30% of your monthly retirement income, you might need to reconsider your housing situation.
3. Test Drive Your Retirement Budget
One of the best strategies? Live on your projected retirement income BEFORE you actually retire. Try living on $5,000 a month for 3-6 months while you’re still working. This real-world test will show you exactly where the challenges will be.
4. Delay Social Security If Possible
For every year you delay claiming Social Security benefits beyond your full retirement age (usually 66-67), your benefit increases by about 8% until age 70. That’s a guaranteed return you won’t find anywhere else!
Healthcare: The Retirement Budget Buster
I can’t stress this enough – healthcare costs can destroy even the most carefully planned retirement budget.
According to research from the Employee Benefit Research Institute, a 65-year-old couple would need about $351,000 in savings just for healthcare expenses for a 90% chance of covering their medical costs in retirement. That’s not including long-term care!
Medicare will help, but it doesn’t cover everything. Consider:
- Medicare Supplement insurance to cover gaps
- Long-term care insurance (ideally purchased in your 50s or early 60s)
- Health savings accounts (HSAs) if you’re still working and eligible
The Lifestyle Factor: What Kind of Retirement Do You Want?
This is where retirement planning gets personal. Some couples are perfectly happy with simple pleasures – gardening, reading, visiting with family. Others dream of traveling the world or pursuing expensive hobbies.
Be honest with yourself about what truly brings you joy. If you’re a homebody who loves Netflix and gardening, $60,000 might be plenty! If you’ve been dreaming of cruising the Mediterranean every year… well, you might need to adjust your expectations or boost your savings.
Ask yourself:
- Will you travel frequently?
- Do you have expensive hobbies?
- How often do you plan to dine out?
- Will you be helping family members financially?
- Do you plan to volunteer or work part-time?
Making It Work: Real Strategies for $60K Retirement
If you’re determined to make $60,000 work for your retirement, here are some practical strategies:
Develop Multiple Income Streams
Don’t rely solely on savings and Social Security. Consider:
- Part-time work doing something you enjoy
- Rental income (maybe rent out a room or property)
- Dividend-paying investments
- Side hustles that leverage your skills
Embrace Frugal Living (Without Feeling Deprived)
There’s a difference between being frugal and being cheap. Frugal means being intentional about spending on what truly matters to you. Some ideas:
- Cook at home most nights, but enjoy occasional meals out
- Travel in shoulder seasons when prices are lower
- Take advantage of senior discounts (they’re EVERYWHERE!)
- Find free or low-cost entertainment options
Consider Your Housing Creatively
Your home is likely both your biggest expense and your biggest asset. Options include:
- Downsizing to a smaller, more manageable home
- Relocating to a lower-cost area
- House-sharing with family or friends
- Exploring active adult communities with built-in amenities
The Bottom Line: Yes, You Can (Probably) Retire on $60K
So can a couple retire on $60,000 a year? For many Americans, the answer is yes – especially if:
- You’ve paid off your mortgage
- You’re in reasonably good health
- You don’t live in a high-cost area
- You have modest lifestyle expectations
- You’ve planned for healthcare costs
Remember, the “average” retired couple makes do with around $76,000 annually, so $60,000 isn’t far off the mark. With thoughtful planning and realistic expectations, it’s absolutely doable.
Final Thoughts: It’s Not Just About the Number
I’ve seen couples struggle on $100,000+ retirement incomes and others thrive on much less. The secret isn’t just the dollar amount – it’s having clarity about what truly matters to you in retirement.
The happiest retirees I know are those who’ve aligned their spending with their values, eliminated debt, and created a lifestyle that brings them joy without financial stress.
So yes, $60,000 can work for retirement – if you plan thoughtfully, make smart choices about where and how you live, and focus on what truly brings you happiness in those golden years.
What do you think? Could you retire on $60,000 a year? Have you started planning your retirement budget yet? I’d love to hear your thoughts in the comments!
Disclaimer: This article contains general information and shouldn’t be construed as financial advice. Everyone’s situation is unique, and it’s always best to consult with a qualified financial advisor about your specific retirement plans.
Quantifying Family Needs and Commitments
Most estimates of a couple’s financial needs in retirement assume it’s just two people. However, you may have children or dependents that could change your monthly retirement income projections.
Simply put, the larger your family and the more dependents you have, the greater your monthly retirement income should be—more people means higher expenses. Healthcare costs, food, housing, entertainment, and other expenses can increase with each additional person in your household.
Even if you don’t have live-in dependents—but support an adult child, grandchildren, an aging parent, or a loved one with special needs—you may require a higher income than someone with no dependents.
Do You and Your Partner Lead an Active Lifestyle?
While an active lifestyle can be less expensive than a traveling lifestyle, it may include expenses for sports equipment, club memberships, and potentially physical therapy.
Can a couple retire at 60 with $1 million?
FAQ
Can a retired couple live on $60,000 a year?
A retired couple might be able to live on $60,000 a year, but it depends on where they live, how much healthcare costs, how they live, and how much debt they have. A paid-off home and minimal debt, alongside responsible spending on essentials like food and transportation, make this income feasible.
What is a good retirement income for a married couple?
A good retirement income for a married couple typically falls between 70% and 80% of their pre-retirement income, aiming to maintain their standard of living, with many experts suggesting 80% is a reliable benchmark. This number is just a suggestion, though, because the right amount depends on your lifestyle, where you live, your health, and your retirement goals.
How much money does a couple need to retire comfortably at 60?
Still, financial experts often recommend having at least eight times your annual salary saved by this age to maintain your current lifestyle. If earning a current salary of $100,000 a year, you should aim for at least $800,000 to $1 million in retirement savings by 60. This figure isn’t set in stone—it’s a guideline.
How much can a couple comfortably retire on?
A couple needs a comfortable retirement fund of approximately 80-90% of their pre-retirement income, with total savings potentially reaching 10-13 times their pre-retirement income, but a definitive number requires calculating future expenses like housing, healthcare, travel, and personal lifestyle choices.
How much money does a 65-year-old couple need in retirement?
Fidelity says that the average 65-year-old couple who retires today might need about $330,000 to pay for their health care costs in retirement. If one spouse gets a long-term illness that needs ongoing treatment or medication, the yearly costs could easily go over $10,000. This could change how much you need to take out of savings or your budget each year.
How much money should a couple save for retirement?
As a couple, you do daily life together—but you dream big dreams together, too. That often includes retirement. But making it a reality requires careful planning and saving. It’s recommended that most couples save at least seven to eight times their combined annual income to retire comfortably.
Should you plan for retirement as a couple?
Planning for retirement as a couple adds another layer of complexity to what’s already an important financial goal. If you’re asking, “how much money does a couple need to retire?” then you’re likely trying to support a comfortable lifestyle for two.
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 you need After retirement?
If a couple earns $120,000, that means they should plan to spend approximately $84,000 to $96,000 per year after retiring. To estimate how much total savings you’ll need, many financial professionals use the 4% rule. This rule assumes you can safely withdraw 4% of your retirement savings annually over a 30-year retirement.
How much does a 66 year-old couple earn a year?
Let’s take a look at a 66-year-old couple that earns $60,000 a year. If they want to retire at their full retirement age of 66, their Social Security benefit would be about $1,500 a month, or $18,000 a year. (The passage does not provide information about their total earnings a year.)