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. No two couples are alike, but there are benchmarks and planning strategies that can help you estimate your retirement needs. Here is what you need to know and how you can 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?
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, 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. For example, say your annual retirement spending goal is $90,000. If you expect to receive $40,000 per year from Social Security, the remaining $50,000 per year comes from your savings. Using the 4% rule:
- $50,000 ÷ 0.04 = $1.25 million
Keep in mind that inflation, healthcare costs and market performance can all affect this projection. This is why regular reviews and adjustments are important.
Social Security and Other Income
Social Security will likely be a significant part of your retirement income. For couples, benefits depend on each spouse’s work history, age when they claim and whether spousal benefits apply.
As of December 2024, the average monthly benefit for a retired worker is $1,975. If both partners are eligible, that’s a combined monthly benefit of $3,950, or $47,400 a year.
Your claiming strategy matters, too: If both spouses wait until full retirement age, typically 66 to 67, depending on birth year, 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%.
Some couples may also 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
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. Whether you plan to stay in your current home, downsize or rent will dramatically affect your monthly budget.
For example, a couple who owns their home outright might only pay property taxes and maintenance, maybe around $800 per month, depending on location. Another couple renting a two-bedroom apartment in a major city could spend $2,500 per month or more. 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.
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 $330,000 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.
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.
Build a Realistic Budget
A clear picture of your retirement lifestyle and the costs associated with it can help you identify a realistic savings target. Begin by reviewing your current expenses and adjusting 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.
| Category | Monthly Cost |
| Housing (taxes, insurance, maintenance) | $800 |
| Utilities (electric, water, internet) | $250 |
| Groceries | $650 |
| Transportation (fuel, insurance, maintenance) | $400 |
| Healthcare (Medicare premiums, copays, prescriptions) | $750 |
| Travel & Leisure | $500 |
| Dining Out | $250 |
| Insurance (life, long-term care) | $200 |
| Gifts, Donations, and Miscellaneous | $200 |
| Total Estimated Monthly Spending | $4,000 |
| Total Estimated Annual Spending | $48,000 |
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.
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.
Photo credit: ©iStock.com/Alessandro Biascioli, ©iStock.com/Deagreez, ©iStock.com/Zinkevych
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