How Much Money Does a Couple Need to Retire?

Planning for retirement as a couple adds another layer of complexity to what’s already an important financial goal. How much money does a couple need to retire? The answer is different for every pair, but there are benchmarks and planning strategies that can help you estimate your retirement needs. Here’s how to determine the right amount for you and your partner.

A financial advisor can also help assess your current progress, fine-tune your strategy and project whether your savings will go the distance so you can retire with peace of mind.

How Much Money Does a Couple Need to Retire?

A common rule of thumb suggests that most couples who want to maintain their lifestyle need 70% to 80% of their pre-retirement income to do so. If a couple earns $120,000, for example, 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 suggest using the 4% rule. This rule assumes you can safely withdraw 4% of your retirement savings annually over a 30-year retirement, without running out of money. 

Here’s an example of the 4% rule at work. Say your annual retirement spending goal is $90,000. You anticipate receiving $40,000 per year from Social Security, leaving the remaining $50,000 per year to come from your savings. Using the 4% rule:

• $50,000 ÷ 0.04 = $1.25 million

Is $1.25 million enough? Should couples aim for $2 million instead? Inflation, market performance, your health and life events can all impact your financial need. Your Social Security benefits and anticipated spending also play a role.

Social Security and Other Income

Approximately 52.6 million retirees ¹ receive Social Security benefits; for 38.3 million people, it represents roughly half of their personal income. Planning for retirement as a couple means estimating how much you’re likely to draw from Social Security, and when it makes sense for each of you to begin claiming benefits. 

As of August 2025, the average monthly benefit for a retired worker is $1,955 ² . If both partners are eligible, that’s a combined monthly benefit of $3,910, or $46,920 a year. The average spousal benefit, which allows one spouse to claim Social Security based on the other’s earnings, was $955.

If both spouses wait until full retirement age, which is 67 for people who turn 62 in 2025 ³ , they’ll receive their full benefit. Delaying benefits until age 70 increases monthly payments by about 8% per year. Retiring early, on the other hand, could reduce your benefit by up to 30%.

In addition to Social Security, some couples may  have pensions, annuities, or part-time income that supplements their retirement budget. All of these income streams reduce the amount you’ll need to withdraw from savings, helping to extend the life of your portfolio.

Estimate Retirement Spending

The Consumer Expenditures Survey ⁴ indicates that beginning at age 65, spending tends to decrease year over year. However, 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. The following are some of the key factors that influence retirement spending.

Housing Costs

Housing remains the largest expense for most retirees, when you factor in mortgage payments, homeowners insurance, property taxes, HOA fees, utilities and maintenance.Whether you plan to stay in your current home, downsize or rent will dramatically affect your monthly budget. Location also makes a difference. 

For example, living in a paid-off home in a rural area may put total housing expenses at under $1,000 per month.  Living in a more expensive city, where you still have a mortgage, could have you paying two or three times that per month.

Downsizing to a smaller home or relocating to a lower-cost area could free up equity and reduce ongoing expenses, helping stretch retirement savings further. You might also consider a reverse mortgage if you own your home outright. A reverse mortgage allows you to tap into your equity, while continuing to live in your home. Generally, the mortgage must be paid in full if you sell the property. Special rules can allow a spouse to continue living in the home if you pass away or move into a nursing home. 

Healthcare

Healthcare costs typically rise with age and can make up a significant portion of retirement spending, even with Medicare coverage. Premiums, deductibles, copays, and out-of-pocket costs for prescriptions, dental, vision, and long-term care must be considered.

According to Fidelity, the average 65-year-old couple retiring today may need around $345,000 ⁵ to cover healthcare costs in retirement. If one spouse develops a chronic condition requiring ongoing medication or treatment, annual expenses could easily exceed $10,000, impacting how much you need to withdraw from savings or budget each year.

Fidelity’s estimate does not include long-term care in a nursing home, which is not covered by Medicare. According to Genworth Financial, the annual median cost of long-term care ranges from $111,325 for a semi-private room to $127,750 for a private room ⁶ . 

If you anticipate needing long-term care for yourself or your spouse, there are a few ways you might plan for it:

• Purchase long-term care insurance. A long-term care insurance policy can pay out benefits to cover the cost of care, up to a maximum limit. 
• Get a hybrid life insurance policy. Hybrid life insurance can pay out a death benefit if a covered person passes away, or pay benefits to cover long-term care while they’re still living. Any money paid out for long-term care would be subtracted from the death benefit. 
• Fund an HSA. Health savings accounts (HSAs) are tax-advantaged savings accounts that are attached to high deductible health plans. Contributions are tax-deductible, growth is tax-deferred and withdrawals are tax-free when used for eligible healthcare expenses, including long-term care.
• Consider an annuity. Annuities are insurance contracts that let you collect payments beginning at a predetermined date. You pay a premium upfront and can later receive payments in a lump sum or installments. You can use the money to supplement your retirement costs, including long-term care. 

You could use Medicaid to pay for long-term care insurance, but there’s a catch. You may need to spend down some of your assets to qualify for coverage. Medicaid is reserved for people with modest incomes and financial resources. A Medicaid asset protection trust can shield your assets, which can be beneficial for couples when one spouse needs care but the other doesn’t. 

Some of these options are a little more nuanced than others. You may want to talk to a financial advisor about whether long-term care or hybrid insurance, HSAs and annuities fit into your retirement plan. 

Lifestyle Choices

The retirement you envision, whether it’s full of travel, dining out, hobbies or helping family members, has a direct impact on your financial strategy.

For instance, a couple planning to travel internationally a few times per year might budget $15,000 annually for trips alone. Meanwhile, a couple content with a quiet lifestyle at home might spend significantly less. Supporting adult children, contributing to grandchildren’s education or making charitable donations can also add to your expenses.

For some, retirement features an outside-the-box choice, like moving overseas or living on a cruise ship. The costs to do either could be higher–or lower–than staying where you are now. Creating an itemized budget for your projected future lifestyle is the next step in planning for retirement as a couple. 

Build a Realistic Budget

To make a retirement budget, begin by reviewing your current expenses. Then, adjust each expense category for changes you expect in retirement. Consider fixed costs (like housing or insurance), variable costs (such as travel or entertainment) and unpredictable expenses (healthcare or emergencies). A financial advisor can help you estimate long-term spending, model various scenarios and make adjustments that align your savings with your goals.

Sample Retirement Budget for a Couple

Below is a sample monthly budget for a retired couple living in a mid-cost area. This assumes they own their home, are relatively healthy and live a moderately active lifestyle.

This couple would need about $1.2 million saved to safely generate $48,000 annually using the 4% rule, less if they receive Social Security or pension income to offset some of the cost.

Coordinating Finances as a Couple

Planning for retirement as a couple requires more than adding up two balances and projecting joint spending. Differences in age, earnings history and retirement timing mean that each spouse’s financial picture is distinct. A younger partner may need income for a longer period, while an older partner may be eligible for benefits or distributions sooner. These differences can leave gaps in income or mismatched expectations about when and how to retire. 

Here are some of the areas where coordinated planning is most important:

• Social Security. Claiming strategies are not only about individual benefits but also about how those benefits interact. One spouse may benefit from delaying in order to maximize lifetime income, while the other begins earlier to provide cash flow. Survivor benefits are tied to the higher earner’s record, so the decision about when that spouse claims affects the financial security of the surviving partner.
• Investment strategy. Couples often differ in risk tolerance, with one partner favoring conservative holdings while the other prefers growth. Left unaddressed, this can create a portfolio that reflects neither partner’s goals. A coordinated approach balances the need for long-term growth with the desire for stability, and both spouses must understand the allocation to avoid confusion if one partner later takes the lead in managing finances.
• Healthcare. Retirement plans should account for Medicare costs, supplemental coverage, and potential long-term care needs, which may not affect both spouses at the same time. Survivor planning, whether through annuities, pensions with survivor options, or life insurance, is critical to protecting the spouse who outlives the other. Building these protections into the plan reduces the risk that one partner faces financial strain after the other’s death.

Bottom Line

So, how much money does a couple need to retire? While benchmarks like the 4% rule or 80% of pre-retirement income provide useful starting points, the real answer depends on your unique circumstances — your lifestyle, health, income sources and retirement goals. For many couples, a savings target of $1 million to $2 million is a reasonable goal, especially when paired with Social Security and other income streams.

Tips for Retirement Planning

• How confident are you that your portfolio is positioned for today’s economy? If you want to make sure you reach your retirement goals, it had better be. That’s where a financial advisor comes in, who can help you adjust as needed to make sure your investments are always planning ahead for retirement. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Utilizing a retirement calculator can give you a head start by estimating how much you might need to save for the retirement you want.

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