How Much Does a Couple Need to Retire Comfortably?

How Much Does a Couple Need to Retire Comfortably?

Dreaming of retirement is exciting and scary at the same time. Whether you're 30 or 50 years old, it will be here before you know it. Knowing how much a couple needs to retire comfortably can help you reach your retirement goals.

The key is getting a good idea of what you and your partner want in retirement, as no two couples have the same needs.

For example, some couples need most of their pre-retirement salary to achieve their retirement goals, and others cut down significantly and don't need nearly as much saved.

Importance of Retirement Planning for Couples

Retirement planning is something you may think you can put off, especially if you are young and newly married. However, it is one of the most important things you can do for your marriage, and the earlier you do it, the better.

Planning for retirement now ensures you have what you need when you retire. Saving a retirement nest egg so you and your spouse can live the life you dream of is one of the most crucial steps, but you must plan first.

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Factors Influencing Retirement Needs

Many factors may affect how much you need in your retirement account. You likely won't need your pre-retirement income, but your retirement savings goals will look different than anyone else's because they rely on your exact plans. Here are some factors to consider:

Travel Plans and Hobbies

Retirement means a whole new lifestyle. You won't have to do the daily grind any longer, which can be nice for some and challenging for others. Consider what you and your spouse want to do when determining your retirement savings goal.

You can set goals as individuals as well as a couple.

First, explore each person's passions and desires. Maybe one spouse wants to join clubs, take up a new sport, or give their time to charity. Another spouse may be perfectly happy keeping up the house and spending quiet time at home.

Next, consider your travel plans. With more free time on your hands, you may desire to travel more than you did before. Since travel is expensive, this will increase the amount you need to save for retirement and will continue to increase as inflation increases.

Do you plan to travel once a year or more frequently? Some couples even downsize their house and travel more than they are home. Your lifestyle plans determine how much you need in your retirement plan, so thinking ahead is key.

Dining Habits and Entertainment Expenses

Consider your dining habits and entertainment expenses. Of course, no one can predict exactly what they will do with their free time in retirement, but consider this:

  • Do you see yourself cooking at home more and eating out less now that you have more time?

  • Are you both "foodies" who love to try different restaurants and plan to travel to see what's out there?

  • Do you like to go out to shows, concerts, and plays, or do you plan to be more of a homebody?

Consider what each partner may want, what you might do together or separate. It's not unusual for retirees to each have a group of people with similar interests with whom to go out and do things, so knowing what you intend to do can help you plan.

Cost of Living Variations Across States

If you live in a state with a high cost of living, consider your options. Will you stay put because you're close to family and/or want to age where you spent most of your married years, or will you downsize and move to another state where the cost of living is lower?

In fact, 44% of Americans moved due to retirement, some to be closer to family and others for a change of pace.

If moving out of state is one of your goals, be sure you know the cost of living and determine how it will fit into your household income during retirement.

Urban vs. Rural Living Impacts on Retirement Income

Not only does the state you plan to live in affect how much you need in your retirement accounts, but so does the area, whether it's urban or rural.

Urban households tend to be more housing-burdened than rural households, and living in rural areas is often cheaper than urban ones. But as you retire, you must consider the logistics of your choice.

In urban areas, you are more likely to have help at your fingertips and quick access to medical care, whereas in rural areas, you may have less access, which can be scary and even more expensive as you pay to travel to urban areas for what you need.

Anticipating Medical Expenses in Retirement

Medical expenses are among the most overlooked expenses in a budget for retired couples. If both partners retire, you'll likely need to rely on Medicare or the Healthcare Marketplace for insurance, which still leaves you responsible for the premiums and out-of-pocket costs.

Even if you are mostly healthy now, consider the average medical costs for typical retirees, which are anticipated at $157,000 right now but could increase with inflation.


Retirement Savings Benchmarks for Married Couples

While there's no rule regarding how much you need in your 401K with employer contributions, an individual retirement account, or a pension to retire, here are some benchmarks to consider* as you age:

  • By age 30, have 1x your household income saved

  • By age 35, have 2x your household income saved

  • By age 40, have 3x your household income saved

  • By age 45, have 4x your household income saved

  • By age 50, have 6x your household income saved

  • By age 55, have 7x your household income saved

  • By age 60, have 8x your household income saved

  • By age 67, have 10x your household income saved

These are just benchmarks to get you started. They should give you an idea of how much of your current household income you should set aside for retirement.

No one should rely on Social Security income since it's not guaranteed, and the amount won't cover all your needs. For example, a current retiree earns an average of $1,907 per month, which is hardly enough income to support a couple in retirement.

How to Estimate How Much You Need To Retire

Estimating how much you need to retire requires determining your annual income to achieve your retirement goals. Here's what to consider:

  • Where will you live?

  • Will you downsize?

  • Will you have a mortgage or other consumer debt?

  • How will you handle healthcare expenses?

  • What hobbies do you plan to have?

  • Will you travel?

  • Will one partner continue working?

Ready To Retire Comfortably?

If you're ready to retire comfortably, it's important to consult with a financial advisor who can help you understand your financial situation today and look forward to retirement. Saving for retirement takes years, if not decades, so the earlier you start, the better off you'll be.

If you're ready to maximize your retirement savings and start taking advantage of employer contributions, tax advantages*, and other perks to help ensure you have enough money for retirement, it starts by getting on the same page about money. I can help — contact me today for your free consultation.

*This article is for general, educational purposes. Nothing said here should be construed as investment, tax, or legal advice. Consult the relevant professional to understand your personal situation and available options.

Want to level up your game around money in your relationship? My free quiz will help you learn your Couple’s Money Personality Type AND how you can grow from there!


Adam Kol is The Couples Financial Coach. He helps couples go from financial overwhelm or fighting to clarity, teamwork, and peace of mind.

Adam is a Certified Financial Therapist™, Certified Mediator, and Tax Attorney with a Duke Law degree and a Master's in Tax Law from NYU. He is a husband, dad, and musician, as well.

Adam's wisdom has been shared with The Wall Street Journal, the Baltimore Ravens, CNBC, NewsNation, and more.

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