Retirement looks different for every couple. The number you need depends on when you want to stop working, where you plan to live, what you want your days to look like, and dozens of other factors that are uniquely yours. But that doesn't mean you have to figure it out from scratch.
There are proven benchmarks, smart strategies, and clear frameworks that can help you and your partner build a retirement plan that actually fits your life. Here's what you need to know.
The Short Answer: Most Couples Need 70% to 85% of Pre-Retirement Income
Financial experts generally recommend that couples plan to replace 70% to 85% of their pre-retirement household income each year in retirement. The logic is straightforward: some expenses go down (commuting costs, retirement contributions, potentially a mortgage) while others, like travel and healthcare, may go up.
For a couple earning a combined $150,000 per year, that means targeting roughly $105,000 to $127,500 annually in retirement income. At a 4% withdrawal rate (more on why we use 4% a little later), that translates to a portfolio of approximately $2.6M to $3.2M, supplemented by Social Security.
That said, a target number is a starting point, not a finish line. What matters most is building a plan that reflects your specific goals and adjusts as your life evolves.
Retirement Savings Benchmarks by Age
One of the most useful ways to gauge progress is comparing your combined savings against your household income. T. Rowe Price research offers these benchmarks as a guide:
By age 35: 1x - 1.5x your combined annual salary saved
By age 40: 1.5x - 2.5x your combined annual salary saved
By age 50: 3.5x - 5.5x your combined annual salary saved
By age 60: 6x - 11x your combined annual salary saved
By age 65-70: 7.5x - 13.5x your combined annual salary saved, depending on income level and retirement timing
These figures apply to dual-income households. Single-income households should aim slightly higher at each milestone, since Social Security benefits will reflect one earner's work record rather than two.
What Do These Numbers Look Like in Practice?
For a couple with $100,000 in combined household income, T. Rowe Price suggests having about $450,000 saved by age 50 and at least $750,000 by age 65. At $150,000 in combined income, those targets rise to $675,000 and $1.125M, respectively.
These are benchmarks, not ceilings. If you've started late, have significant healthcare considerations, or want to retire before 65, you may need to aim higher or accelerate your savings rate. A CFP® professional can help you run scenarios specific to your situation.
The 4% Rule and What It Means for Couples
The 4% rule is a widely used retirement planning guideline suggesting that retirees can withdraw 4% of their portfolio annually with a high likelihood of not running out of money over a 30-year retirement. The remaining 96% stays invested to continue growing.
For a couple planning to spend $120,000 per year in retirement and expecting $40,000 from Social Security, you'd need your portfolio to generate $80,000 annually. Under the 4% rule, that requires $2M in savings.
Some planners recommend a more conservative 3% to 3.5% withdrawal rate to account for a longer retirement horizon. Others adjust upward slightly if their spending is highly flexible. Your withdrawal strategy should reflect your timeline, spending habits, and risk tolerance.
Why Social Security Alone Won't Be Enough
Social Security replaces roughly 40% of a median wage earner's pre-retirement income. For most couples, that's a solid contribution to retirement income, but it's not sufficient on its own.
As of 2025, retired couples receiving Social Security collect an average of about $2,900 per month combined. For context, that's approximately $34,800 per year. For couples accustomed to spending $100,000 or more annually, the gap is significant.
A few important things to know about Social Security as a couple:
A lower-earning spouse can claim up to 50% of the higher-earning spouse's benefit if that amount exceeds what they'd receive on their own work record. If the higher-earning spouse passes away first, the surviving spouse can receive up to the full benefit the deceased was collecting.
Delaying Social Security benefits beyond age 62, up to age 70, increases your monthly payment by 8% per year. For couples who can afford to wait, this strategy can meaningfully boost lifetime income.
Key Factors That Shape Your Number
No single savings target fits every couple. Here are the variables that matter most:
Retirement age: Retiring at 60 rather than 67 means a larger portfolio to sustain a longer retirement and potentially fewer years of peak earnings and contributions. Early retirement is achievable with the right plan, but it requires a more aggressive savings rate.
Healthcare costs: For couples retiring before Medicare eligibility at 65, private health insurance can cost $1,000 to $2,000 or more per month. Even after Medicare, out-of-pocket costs add up. Fidelity estimates that the average 65-year-old couple will spend approximately $315,000 on healthcare throughout retirement.
Where you plan to live: A retirement in a high cost-of-living city requires a significantly different budget than one in a lower cost area. Downsizing, relocating, or moving closer to family can all have a major impact on how much you'll need.
Lifestyle and spending: Two couples with identical incomes can have very different retirement needs depending on how they want to spend their time. Travel, hobbies, helping adult children, charitable giving, and other priorities all belong in your retirement budget.
Age gap between partners: If one partner is several years older, you may be planning for different retirement start dates, different Social Security claiming strategies, and potentially a longer period of solo retirement income for the younger spouse.
The Advantage of Planning as a Couple
Retirement planning as a couple has real financial advantages. Two income streams mean more opportunities to contribute to tax-advantaged accounts, including 401(k)s, IRAs, and Health Savings Accounts. Two Social Security records mean more flexibility in claiming strategies. Two perspectives mean better accountability and a shared vision.
Research from Charles Schwab found that people with a formal financial plan are 3.7 times more likely to feel confident about reaching their goals. That confidence gap is even more significant when couples are aligned on a shared strategy rather than planning independently.
The most effective retirement plans for couples address not just the numbers, but the coordination between partners: who retires first, how you'll handle the transition from saving to spending, how your investment strategy shifts as you age, and what happens to the surviving spouse's finances if one partner passes away.
Withdrawal Strategies Worth Knowing
Once you're in retirement, how you draw down your savings is just as important as how much you've saved. Here are the two most commonly referenced frameworks:
The 4% rule. Withdraw no more than 4% of your portfolio in year one and adjust for inflation each year thereafter. This approach was designed to sustain a 30-year retirement under most market conditions.
The 80% rule. Plan to spend roughly 80% of what you earned before retirement. This accounts for the reality that retirees typically spend less on work-related expenses, commuting, and retirement savings contributions, while potentially spending more on travel and healthcare.
Neither rule is one-size-fits-all. Couples with significant pension income or rental properties may need to withdraw less from their portfolio. Those with high healthcare needs or ambitious travel goals may need a higher withdrawal rate in early retirement and a lower one later.
A retirement income strategy should also address the sequence of returns risk: the danger of withdrawing heavily from a portfolio during a market downturn early in retirement, which can permanently reduce your nest egg's ability to recover. Strategies like maintaining a cash reserve, using a bucket approach, or keeping a flexible spending plan can help protect against this risk.
Age-Gap Considerations for Couples
If one partner is older, you're essentially planning two retirements that overlap. A few things to think through:
The older partner may claim Social Security earlier, but delaying could increase income for both of you if the younger partner is set to receive spousal benefits. The younger partner may need to plan for a decade or more of solo income after the older partner passes. Investment allocations should account for both partners' time horizons, not just the older partner's age. Long-term care planning becomes more complex with an age gap, since the younger partner may eventually provide care before their own retirement needs intensify.
These are the kinds of details that get missed when couples plan informally. Mapping them out explicitly, with a CFP® professional who can model different scenarios, can reveal gaps before they become problems.
How a CFP® Professional Can Help Couples Retire with Confidence
Retirement planning for couples involves more moving parts than most people expect. Social Security optimization, tax-efficient withdrawal sequencing, Roth conversion strategies, estate planning, and healthcare coverage all interact in ways that aren't always obvious.
Research from Vanguard shows that professional financial guidance can add approximately 3% in net returns per year, not from stock picking, but from consistently doing the fundamentals well: behavioral coaching, tax-efficient implementation, proactive rebalancing, and smart asset location.
At Domain Money, our CFP® professionals work with couples to build retirement plans that are specific, actionable, and built to adapt. We help you figure out your number, create a path to reach it, and stay on track as life changes along the way. Our flat-fee model means our advice never changes based on how much you have invested.
Frequently Asked Questions
How much does a couple need to retire comfortably?
Most couples will need to replace 70% to 85% of their pre-retirement income each year. The specific amount depends on retirement age, lifestyle, healthcare costs, location, and other income sources like Social Security or pensions. A common benchmark is saving 10 to 11 times your combined household income before retiring.
What is the average retirement savings for a couple?
According to Vanguard data, the average 401(k) balance for individuals ages 55 to 64 is approximately $271,000, and $299,000 for those 65 and older. For couples, combined savings vary widely based on income, savings rate, and years in the workforce.
Is $1 million enough for a couple to retire?
For many couples, $1M may not be sufficient on its own. At a 4% withdrawal rate, $1M generates $40,000 per year. Combined with Social Security, this could support a modest retirement lifestyle, but it may not cover healthcare costs, housing, and other expenses for a 25 to 30-year retirement.
At what age should a couple have $1 million saved?
Financial benchmarks suggest couples should aim for 5 to 6 times their combined income by age 50. For a couple earning $150,000 per year, that means targeting $750,000 to $900,000 by 50 and $1.5M by 65. $1M by your mid-50s puts most couples in a strong position.
How does Social Security factor into a couple's retirement plan?
Social Security replaces roughly 40% of a median worker's pre-retirement income. Couples benefit from two earnings records, spousal benefit options, and survivor benefits. Delaying benefits to age 70 can increase your monthly payment by approximately 8% per year, which adds up significantly over a long retirement.
Should couples plan for retirement together or separately?
Planning together is almost always better. It allows you to coordinate Social Security claiming, align your investment strategies, and account for the financial implications of different retirement dates or life expectancies. A joint financial plan also helps ensure the surviving spouse is protected.
Ready to Build Your Retirement Plan Together?
Knowing your number is one thing. Building a strategy to reach it is another. At Domain Money, our CFP® professionals work with couples to create personalized retirement plans that account for everything: Social Security timing, tax-efficient withdrawals, investment strategy, estate planning, and the what-ifs that most people don't think about until it's too late.
Our flat-fee membership means you get expert guidance without the conflict of interest that comes with AUM-based pricing. Your portfolio grows. Our fee stays the same.
This article is for informational purposes only and does not constitute financial, tax, or legal advice. For guidance tailored to your situation, please consult a qualified financial professional.
