It can be intimidating to plan for retirement, especially since fewer companies are offering pensions that can help you finance your golden years. If you’re married or in a committed relationship, you may experience twice as much stress when it comes to future planning. You might be wondering how much a couple needs to retire and what the average retirement income for a couple is.
You can compare your average retirement savings to the population to see if you are on track with your retirement goals. Check out these suggested retirement savings guidelines for when you’re in your 20s, 30s, 40s, 50s, and beyond. For instance, how much money should someone in the 35–44 age group have saved for retirement?
Planning for retirement as a couple requires careful consideration of your combined income needs and expenses. While individual retirement savings goals are important, understanding the average retirement income for married couples can provide a helpful benchmark as you plan for your future.
Average Retirement Savings for Married Couples
According to a recent study by SmartAsset, the average retirement savings for married couples varies depending on their age and income. Here’s a breakdown:
| Age Group | Average Savings | Median Savings |
|---|---|---|
| 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 |
As you can see, the average retirement savings for couples increase with age, reflecting the importance of consistent saving throughout your working years.
Retirement Savings Benchmarks for Married Couples
Financial experts recommend that married couples aim for specific retirement savings targets based on their income and age. Here’s a table outlining these benchmarks:
| Household Income | Married, Dual Income at Age 55 | Married, Dual Income at Age 65 | Married, Single Income at Age 55 | Married, Single Income at Age 65 |
|---|---|---|---|---|
| $75,000 | $412,500 (5.5x) | $675,000 (9x) | $337,500 (4.5x) | $562,500 (7.5x) |
| $100,000 | $600,000 (6x) | $1 Million (10x) | $500,000 (5x) | $850,000 (8.5x) |
| $150,000 | $975,000 (6.5x) | $1.575 Million (10.5x) | $900,000 (6x) | $1.500 Million (10x) |
| $200,000 | $1.300 Million (6.5x) | $2.200 Million(11x) | $1.400 million (7x) | $2.300 Million (11.5x) |
| $250,000 | $1.700 Million (7x) | $2.875 Million (11.5x) | $1.875 Million (7.5x) | $3.125 Million (12.5x) |
These benchmarks provide a starting point for your retirement planning. Remember, your specific needs and goals may vary, so it’s crucial to personalize your savings plan accordingly.
Why You Should Not Rely on Social Security Alone
While Social Security benefits can provide a valuable supplement to your retirement income, relying solely on them is not advisable. As of January 2022, retired couples who receive Social Security benefits collect an average of $2,753 per month. This amount may not be sufficient to maintain your desired lifestyle in retirement, especially considering rising living costs and potential debt obligations.
Tips for Saving for Retirement as a Couple
Here are some tips to help you and your partner save effectively for retirement:
- Start saving early and consistently: The power of compound interest can significantly boost your retirement savings over time. Even small contributions made early on can accumulate into a substantial nest egg.
- Create a realistic budget: Track your income and expenses to identify areas where you can cut back and allocate more towards retirement savings.
- Maximize employer-sponsored retirement plans: Contribute to your 401(k) or 403(b) plans, especially if your employer offers matching contributions.
- Consider additional retirement savings options: Explore IRAs, Roth IRAs, and other investment vehicles to diversify your retirement portfolio.
- Seek professional guidance: Consult with a financial advisor to create a personalized retirement plan that aligns with your goals and risk tolerance.
Planning for retirement as a married couple requires careful consideration of your combined income needs and expenses. By understanding the average retirement income for married couples, setting realistic savings goals, and implementing effective strategies, you can build a secure financial future for yourselves and your loved ones.
Social Security Has Limits
Social Security accounts for only roughly 2040 percent of a median wage earner’s retirement income. That can leave quite a gap to fill.
How Much Do Couples Need?
Returning to the initial query: Approximately, what is the required amount for a couple to retire? Generally speaking, approximately 270–90% of your pre-retirement income is required to maintain your standard of living in retirement. 1.
The good news for couples is that they can budget for two people’s income and savings in addition to having to account for two people’s expenses. This can help bolster your spending (and saving) power.
Average Retirement Savings by Age 60. Are You Ready to Retire?
FAQ
What is the average retirement income for a married couple?
Can a couple retire at 65 with 500k?
What is a reasonable budget for a retired couple?
Is $1 million enough to retire for a couple?
How much money should a married couple have in retirement?
Retirement Savings Benchmarks for Married Couples Financial experts say that a couple aged 60 with a dual income of $75,000 per year should have seven times their household income in their retirement account. This multiplies to a total of $525,000 saved.
What is a good monthly retirement income for couples?
• There is no exact number for a good monthly retirement income for couples as it varies based on factors like age, health, and lifestyle. • Creating a retirement budget and considering factors like life expectancy and long-term care needs can help determine monthly income needs.
How much money do married couples save a year?
On average, someone under age 25 is saving less than $7,000, while someone between ages 55 and 64 averages just over $232,000. This data breaks down individual balances by age group, but for married couples, targets will differ depending on the couple’s age, household income and whether there is a sole earner or dual income.
How much money does a retiree make a month?
Estimating income can be fairly straightforward, as shown in this example: In 2023, the average retired worker got about $1,800 a month in Social Security retirement benefits. For a couple with similar earnings histories, that makes a total of $3,600 a month or $43,200 a year.