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?
Retirement, a period envisioned as a time for relaxation and enjoyment after years of hard work, is often marred by financial worries. For many, this phase of life is more of a source of dread than a golden era, primarily due to financial insecurities.
A recent study by Zety revealed that 40% of Americans fear retirement more than death, mainly because of financial anxieties. This fear is even more pronounced among married couples, who face the added complexity of planning for two people with varying financial needs.
Understanding the Average Retirement Savings for Married Couples
Many Americans lack adequate retirement savings, with 60% lacking a retirement-specific account, according to a NerdWallet study using data from the 2022 Survey of Consumer Finances. This highlights the need for married couples to prioritize retirement planning and understand the average savings needed for a comfortable retirement.
The average retirement savings for married couples vary significantly by age group:
- Under 35: $49,130 (median: $18,880)
- Ages 35 to 44: $141,520 (median: $45,000)
- Ages 45 to 54: $313,220 (median: $115,000)
- Ages 55 to 64: $537,560 (median: $185,000)
- Ages 65 to 74: $609,230 (median: $200,000)
These figures demonstrate a substantial gap between the average and median savings, indicating a broad spectrum of financial preparedness across different age groups.
Retirement Savings Benchmarks for Married Couples
Financial experts recommend specific savings benchmarks for married couples based on their age, household income, and marital status. For example, a dual-income married couple with an annual income of $75,000 at age 55 should have retirement savings equal to five times their income, which should increase to 8.5 times by age 65. In contrast, a sole earner at the same income level should aim for 4.5 times their income at age 55, increasing to seven times by age 65. These benchmarks scale up for higher-income brackets.
Strategies for Achieving Adequate Retirement Savings
To address retirement anxieties, financial advisors play a crucial role. They offer personalized guidance, helping couples create comprehensive retirement plans based on their unique financial situations and goals. For those concerned about their retirement funds, several practical solutions exist:
- Increase savings rate: Even small increments in savings can yield significant long-term benefits.
- Maximize retirement accounts: Use employer-sponsored plans and individual retirement accounts (IRAs) to their fullest potential.
- Reduce debt: Lowering high-interest debt frees up resources for retirement savings.
- Delay Social Security: Postponing benefits can lead to higher monthly payments.
- Diversify investments: A balanced mix of assets can optimize returns and mitigate risks.
- Create a budget: Tracking expenses helps identify savings opportunities.
- Consider working longer: Additional working years can boost retirement income and savings.
- Review and adjust regularly: Keeping retirement plans up to date ensures alignment with changing financial circumstances.
Planning for retirement as a married couple requires careful consideration of your financial situation, goals, and risk tolerance. By understanding the average retirement savings for married couples by age, setting realistic savings goals, and implementing effective strategies, you can increase your chances of achieving a comfortable and financially secure retirement. Remember, seeking guidance from a financial advisor can provide valuable insights and personalized recommendations to help you reach your retirement goals.
How much do you need to retire at 50?
If you’re considering retiring early after you turn fifty, you should plan ahead by creating a retirement budget, determining your income requirements, finding ways to supplement Social Security, setting up dates for when you can take money out of your retirement account, and figuring out how you’ll pay for health insurance until you can get Medicare. You can calculate how much savings you might need to retire at age 50 by taking these factors into account.
There’s strength in numbers, but the amount you need as a couple depends on your needs and your partner’s as well.
Keep in mind that there is no one-size-fits-all approach. While not all married couples retire at the same time, you may have different ideas about how you want to spend your golden years. However, if you work together to agree on retirement expectations and goals, you can both be more successful.
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 – How Much Should You Have Saved by 55 60 65 ?
FAQ
How much should a married couple have saved for retirement?
What is a good monthly income for a retired couple?
What is the average 401k balance at age 65?
|
Age range
|
Average balance
|
Median balance
|
|
35-44
|
$76,354
|
$28,318
|
|
45-54
|
$142,069
|
$48,301
|
|
55-64
|
$207,874
|
$71,168
|
|
65+
|
$232,710
|
$70,620
|
How much does the average 65 year old have in retirement savings?
How much retirement savings should a married couple have?
For example, a dual-income married couple with an annual income of $75,000 at age 55 should have retirement savings equal to five times their income, which should increase to 8.5 times by age 65. In contrast, a sole earner at the same income level should aim for 4.5 times their income at age 55, increasing to seven times by age 65.
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.
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 should a retiree save a year?
The average retirement savings for a person about to retire are approximately, $225,000, equal to $450,000 combined for a couple that has saved equally. Following the conservative rule of thumb and withdrawing 4% a year will provide this couple with another $1,500 monthly or $18,000 a year.