Best Retirement Plans for Married Couples: A Comprehensive Guide

Planning for retirement as a married couple can be a daunting task, but with the right strategies, you can ensure a secure and comfortable future together.

A joint retirement account can be a great way to combine your resources and simplify your finances.

Many couples find that a 401(k) or 403(b) plan is a good starting point for retirement savings.

These plans often offer employer matching, which can significantly boost your nest egg.

To maximize your retirement savings, consider contributing the maximum amount allowed to your joint account each year.

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Retirement planning can be a challenge for married couples. Forty-eight percent of couples surveyed disagreed on the age they plan to retire.

Having a unified vision for retirement is crucial. This disagreement can lead to stress and uncertainty in their relationship.

One major factor to consider is the husband's desire to retire. In some cases, the husband may hate his job and want to retire early, but the wife may be hesitant due to the unknowns of retirement.

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If you and your spouse have similar incomes and life expectancies, you can maximize your benefits by delaying taking your Social Security Income until age 70. This can increase your benefit by 8% per year for each year you defer.

Delaying benefits can be a wise choice if you're both healthy and don't need the income right away. By putting off taking Social Security, you can receive a higher monthly benefit down the road.

If one spouse dies, the other can receive the deceased's monthly Social Security payment as a survivor benefit if it's higher than their own amount. However, choosing to take Social Security at age 62 may forfeit this benefit.

Married couples have more options when deciding how and when to claim Social Security benefits. You can both file at the same time, or you can stagger your claims, which may be beneficial if one spouse needs the income more than the other.

A couple can claim at different dates and may be eligible for spousal benefits, which can help ensure the surviving spouse receives the highest possible Social Security income.

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Financial planning is a crucial step in creating a successful retirement plan for married couples. It's essential to have a comprehensive financial plan in place, which can be built together with your significant other from the comfort of your own home and at no cost or obligation.

Consider taking a more conservative approach to your savings strategy after retirement, as your financial situation may change. This can involve making your assets more liquid and flexible, just in case you need them unexpectedly.

Having a financial plan will give you a concrete answer to your retirement questions, and it's essential to build it together with your partner. You can begin building your plan with your partner today by clicking the "Start Planning" button below.

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It's time to start making financial moves towards a successful retirement. The first step is to save well, and a retirement calculator can help you see how much you need to save to reach your goals.

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Use a retirement calculator to see how much you need to save. Couples should aim to save enough to replace 70-80% of pre-retirement earnings, though this may vary depending on lifestyle goals and debt levels.

Inflation, potential healthcare costs, and longevity are all important factors to consider when planning for retirement. A financial advisor can help you understand how to use tax-advantaged accounts and savings strategies to reach your goals.

Here are a few popular savings strategies to consider:

Scheduling a meeting with a CFP Professional can help you and your spouse get on the same page with couples retirement planning.

You can contribute up to $23,000 in 2024 and $23,500 in 2025 to a 401(k) through your employer.

Many employers offer a 401(k) for their employees, allowing you to contribute pre-tax dollars to a retirement account, lowering how much you pay in income taxes that year.

Consider contributing at least as much as your employer will match to maximize the free money they give you in exchange for saving for retirement.

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If your employer matches your contributions up to 4%, you should contribute at least 4% to receive the entire match.

You can contribute a lot more than the match amount, but it's essential to prioritize putting in enough to get the free money.

If you're 50 or older, you can make "catchup contributions" to a 401(k) or similar workplace retirement account of up to $7,500.

This means a person who's 50 or older in 2025 can contribute up to $31,000 to a workplace retirement account.

In 2025, individuals aged 60 to 63 will qualify for a unique catch-up contribution option, allowing them to contribute either $10,000 or 150% of the standard catch-up limit for that year.

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As you prepare for retirement, it's essential to ensure you're financially liquid and flexible. This means reevaluating your savings strategy, which may not be the optimal one for post-retirement life.

Consider taking a more conservative approach with your assets, as you'll be partly dependent on them going forward. This will help you avoid any unexpected financial shocks.

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In addition to being conservative, make your assets more liquid and flexible, so you can access them if needed. This might involve diversifying your portfolio or exploring alternative investment options.

A financial advisor can help you understand how to use tax-advantaged accounts, such as a 401(k), to reach your retirement goals. These accounts can provide significant tax benefits and help you save for the future.

Contributing to a 401(k) can also provide a free money match from your employer, which can add up quickly. For example, if your employer matches your contributions up to 4%, you should contribute at least 4% to receive the entire match.

As you approach retirement age, you may be eligible for catch-up contributions to a 401(k) or similar workplace retirement account. This can provide an additional boost to your savings, with a maximum contribution limit of $7,500 for those 50 and older.

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Investing can be overwhelming, but Fisher Investments has created guides to help navigate the maze of investing.

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Their guides cover a range of topics, making it easier to understand the world of investing.

You can find these guides on their website, which is a great resource for anyone looking to learn more about investing.

Fisher Investments has developed guides to help you make informed decisions about your investments.

The guides are designed to be educational and informational, providing valuable insights and tips for investors.

Investing for a comfortable retirement is crucial, and the type of retirement account you choose can have a significant impact on your lifestyle.

Contributions to a traditional IRA come from pretax money, but withdrawals are usually taxed as ordinary income.

Roth IRAs, on the other hand, are post-tax, meaning you pay income tax upfront, but usually don't owe taxes on withdrawals.

The contribution limits and age requirements for IRAs are also important to consider.

You can contribute to a Roth IRA or traditional IRA, but there are limits to how much you can contribute each year.

The age requirement for withdrawing money from an IRA is 59½, with some exceptions.

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Fisher Investments can help you create a plan that takes into account your risk tolerance and financial goals.

They'll look at how much spending you want to have and the resources you have to create that spending.

Fisher Investments will also consider the tax implications of your investments and look for ways to mitigate taxes.

They'll run multiple asset allocation levels to find the Goldilocks portfolio, which is the portfolio that allows you to make the plan work with the least amount of risk possible.

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If you're married, you and your partner may have different comfort levels with investment risk. 40% of couples surveyed said they disagreed on how much risk they're comfortable taking with their investments.

Investment risk can impact your retirement lifestyle. The types of retirement accounts you choose can have a big impact, with contributions to a traditional IRA coming from pretax money and withdrawals being taxed as ordinary income.

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To mitigate taxes, it's essential to consider your Social Security benefits. When creating a plan, it's common to maximize Social Security to minimize taxes.

Finding the right balance of risk and return is crucial. Dean Barber suggests running multiple asset allocation levels to find the "Goldilocks portfolio", which allows you to make the plan work with the least amount of risk possible.

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As you plan for your retirement, it's essential to address long-term care needs that may arise. The average 65-year-old has a nearly 70 percent chance of needing some form of long-term care during their lifetime.

Most long-term care needs will mean personal or medical services at home, but more than one in three will eventually need assisted living or nursing home care. The median annual cost for long-term care is about $34,300 for 20 hours a week of home health service, $64,200 for assisted living, and $116,800 for a private room in a nursing home.

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Private health plans often don't cover long-term care, which may lead to out-of-pocket expenses. Discuss your preferences with your partner about potential care needs, including in-home caregiving or moving to an assisted living facility.

You can explore options like long-term care insurance versus self-funding future needs to find the best approach for your situation. Addressing this challenging topic openly will give you both peace of mind.

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Married couples have advantages when deciding how and when to claim their Social Security benefits.

You can choose to claim your Social Security benefits as early as age 62, but keep in mind that your monthly payment will be reduced by as much as 30 percent.

If you're a couple with similar incomes and life expectancies, consider delaying taking your Social Security benefits to maximize your lifetime benefits.

The longer you defer your benefits, the more your monthly benefits grow - up to 8% per year for each year from age 62 to 70.

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However, if you or your spouse are not in good health or can't afford your retirement lifestyle, it's wise to take your Social Security benefits sooner rather than later.

You may also want to consider the survivor benefit, which allows the surviving spouse to receive the deceased's monthly Social Security payment if it's higher than their own amount.

To qualify for the survivor benefit, one spouse must have already filed for Social Security benefits, and the other spouse must meet the minimum age requirements.

Married couples can also use spousal benefits to maximize their combined Social Security income, especially if one spouse earned significantly more than the other.

If you're the higher earner in the household, consider your spouse's age and health before deciding when to begin receiving benefits.

You can use the Social Security Administration's benefit calculators to help estimate potential benefit amounts and optimize your Social Security strategy.

It's essential to consider your age difference, health, life expectancy, income needs, and more when determining the best claiming ages for each of you.

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Communication is key to a successful retirement plan for married couples. In fact, 71% of people surveyed said they communicate "very well" with their partner about financial issues.

Discussing finances with your partner can have a significant impact on your retirement goals. For example, 79% of couples who communicate very well about their finances expect to live a comfortable lifestyle in retirement.

Having regular conversations about your financial goals and expectations can help you identify potential challenges and create a plan to overcome them. In fact, 64% of couples who communicate very well about their finances discuss finances together at least monthly.

It's essential to discuss your expectations for retirement, including your lifestyle, housing, and finances. You should also consider how you'll manage your money and when you want to stop working.

Here are some key statistics to keep in mind:

By communicating openly and honestly with your partner, you can create a retirement plan that works for both of you. Don't assume your partner has the same financial goals or expectations as you do – have a conversation and make sure you're on the same page.

Most couples try to retire around the same time, but it's not always possible due to age gaps. The younger spouse may work longer to improve their financial situation and add to employer-sponsored individual retirement accounts.

Your financial needs should factor heavily into your retirement-date decision. Projecting how much income you plan to generate from various sources is a good place to start.

For example, to support an income level that keeps your annual withdrawals below 5% of your portfolio's value, you may need a total retirement portfolio of about $2 million, assuming a desired annual income of $100,000.

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Retiring simultaneously can offer shared experiences and adventures, but it's essential to consider each partner's health, career satisfaction, and financial readiness.

Couples with an age gap may find that the younger spouse works longer, improving their financial situation and allowing them to add to employer-sponsored individual retirement accounts or other tax-advantaged accounts.

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A staggering retirement date can provide financial stability and peace of mind, with one partner maintaining a steady income and benefits while the other transitions into retirement.

To determine the best course of action, couples should consider their individual needs and circumstances, and a financial professional can help them explore options for insurance and retirement needs.

A good place to start is by projecting how much income you plan to generate from various sources, estimating how much money you need to support an income level that keeps your annual withdrawals below a certain percentage of your portfolio's value upon retirement.

A common method is to divide your desired annual income by the percentage of your portfolio you plan to withdraw annually to calculate the desired size of your retirement savings.

For example, to withdraw roughly $100,000 annually while limiting withdrawals to about 5% of your retirement savings, you may need a total retirement portfolio of about $2 million.

It's essential to plan for a longer investment time horizon, as bills don't stop on the day you retire, and unforeseen expenses can impact your retirement expenses.

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In fact, 48% of couples surveyed disagreed on the age they plan to retire, highlighting the importance of figuring out this crucial aspect of couples' retirement planning.

Here's a rough estimate of the amount of savings you may need to meet your desired annual income in retirement:

Keep in mind that this is just a rough estimate and doesn't account for income sources beyond your retirement account.

Deciding where to live in retirement is a crucial decision. Research ideal locations together and take trips to get a sense of what living there will be like.

Cost of living is a significant factor to consider. You'll want to research the tax implications of living in different states and factor in your total cost of living, including regular expenses and healthcare costs.

Neighborhoods, shops, and facilities are also important considerations. Think about what kind of environment will suit you and your spouse or partner, and whether proximity to friends and family is a top priority.

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Climate can play a big role in your retirement location choice. Get to know your partner's "dream environment" to find a place where you both can be content.

Here are some key factors to consider when deciding where to live in retirement:

The decision to rent or own a home in retirement depends on your longer-term goals and financial situation. If you have sufficient liquid assets for income and cash flow, then owning might be the way to go.

Couples retirement planning is a deeply personal choice that depends on various factors, including current monthly expenses, desired lifestyle, and future expenses. Most people need about 70% to 80% of their pre-retirement income to maintain their lifestyle.

A couple's financial plan should be built together, considering factors like Social Security benefits, healthcare, and long-term care solutions. This ensures that both partners are on the same page and can make informed decisions about their financial future.

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According to a survey, 71% of couples communicate "very well" about financial issues, and 25% communicate "exceptionally well". This level of communication is associated with a higher likelihood of living a comfortable lifestyle in retirement and having excellent financial health.

Here are some key considerations for couples retirement planning:

Couples can contribute up to $7,000 per year into each of their Roth IRAs, with an additional $1,000 per year for those over age 50.

To qualify for the maximum contribution, married individuals who file taxes jointly have a phase-out range of $230,000 to $240,000 in 2024, with no eligibility above $240,000.

Married individuals filing separately who lived with their spouse face a reduced contribution limit if their modified adjusted gross income (MAGI) is under $10,000 and no eligibility above that.

In 2025, the phase-out range for married couples filing jointly or qualifying widow(er)s will increase to $236,000 and $246,000, with no eligibility above $246,000.

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Here's a summary of the 2024 and 2025 income limits for Roth IRA contributions:

If you exceed these limits, consider strategies like a backdoor Roth IRA to maximize your retirement savings.

Building your comprehensive financial plan as a couple is a crucial step in ensuring a secure and fulfilling retirement. It's essential to approach this process together, as a team, to make informed decisions about your financial future.

To get started, consider reviewing the Retirement Plan Checklist, a useful tool that outlines key considerations for couples to discuss and address. This checklist includes an age-based timeline and 30 yes-or-no questions to gauge your retirement readiness.

Having a clear understanding of your financial goals and priorities is vital. Dean Barber emphasizes that it's not about investing, but about life – what's important to each spouse and the couple as a whole. This prioritization exercise gives the non-CFO spouse a voice in the couples retirement planning process, ensuring that everyone's needs and desires are taken into account.

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A comprehensive financial plan should also address your income sources, including Social Security benefits. Couples can maximize their benefits by delaying their claim until age 70, which can increase their monthly benefits by 8% per year. This strategy can provide a significant boost to your retirement income.

To build a robust financial plan, consider the following key components:

By working together and addressing these essential components, you can create a comprehensive financial plan that meets your unique needs and goals as a couple.

You and your spouse should have open and honest conversations about your retirement goals and expectations. This includes where you may want to live, how you plan to spend your time, and what dreams or passions you want to fulfill during your retirement.

Retirement is a long-term commitment, so it's essential to prepare for the next 35 years of life. If you retire at 65 and live until you're 100, that's a significant amount of time to plan for.

Consider how you're going to manage a fulfilling retirement financially. Striking a balance between your aspirations and your financial capacity is possible with a little planning.

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Making a budget is a crucial step in planning for retirement. It's about figuring out your postretirement income and calculating your daily household costs and discretionary expenses.

To start, you'll need to get an idea of what a good retirement income is for you. Most people find that they'll need about 70% to 80% of what they customarily spend before retiring to maintain their lifestyle.

A good rule of thumb is to calculate your monthly expenses, including housing, food, transportation, and entertainment. You can then use this number to determine how much you'll need to live comfortably in retirement.

Here are some key factors to consider when making a budget for retirement:

To make budgeting easier, consider using the 70-80% rule as a starting point. This means that you'll aim to replace 70-80% of your pre-retirement income with your retirement income.

Remember, budgeting for retirement is a personal decision that depends on your unique circumstances and goals. It's a good idea to consult with a financial professional to get personalized advice and create a tailored plan.

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A spousal IRA is a great way to bolster your savings by using tax-advantaged accounts.

One working person can contribute money to an IRA for their non-working partner, helping to increase their overall savings.

This can be especially helpful for couples where one partner is not working or has a lower income, allowing them to still benefit from tax-advantaged savings.

Using a spousal IRA can also help you plan to maximize Social Security benefits together, as mentioned earlier.

Married couples have a few added advantages when deciding how and when to claim Social Security benefits, including the option to claim at different dates and be eligible for spousal benefits.

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The average 65-year-old has a nearly 70 percent chance of needing some form of long-term care during their lifetime. This will likely mean personal or medical services at home, but more than one in three will eventually need assisted living or nursing home care.

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The median annual cost for long-term care is about $34,300 for 20 hours a week of home health service, $64,200 for assisted living, and $116,800 for a private room in a nursing home. This is a significant expense to consider when planning for retirement.

Most private health plans don't cover long-term care, which may lead to paying out-of-pocket. This is why it's essential to discuss your preferences for long-term care, such as in-home caregiving or assisted living, and explore options like long-term care insurance versus self-funding future needs.

You and your spouse should have open and honest conversations about your retirement goals and expectations, including where you may want to live, how you plan to spend your time, and what dreams or passions you want to fulfill during your retirement.

Having a comprehensive financial plan is essential for a secure retirement. You can start building your plan from home at no cost or obligation with a financial planning tool.

It's crucial to involve your significant other in the planning process. Building your plan together will give you a concrete answer and ensure you're on the same page.

You can begin building your plan with your partner today by clicking the "Start Planning" button. This will help you create a personalized plan tailored to your needs.

Questions will inevitably arise during the planning process. Having a CFP Professional to turn to will provide you with the confidence and freedom you need in retirement. Schedule a 20-minute "ask anything" session or complimentary consultation with a CFP Professional to get started.

To ensure you're making progress, use the Retirement Plan Checklist to stay on track. This will help you identify areas that need attention and make adjustments as needed.

By taking control of your financial planning, you'll be able to enjoy more time with your spouse in retirement.

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