HomePersonal Finance & Real EstateWhat Is a Good Monthly Retirement Income For a Couple?

What Is a Good Monthly Retirement Income For a Couple?

Every couple’s retirement needs are unique. However, certain factors can help you estimate how much income is necessary to live comfortably during your golden years.

As a general guideline, you’ll require about 80% of your pre-retirement income in retirement. However, this number may differ based on individual spending habits and lifestyle objectives.


The amount of income needed by a couple to maintain their retirement lifestyle depends on several factors, including their age, health, life expectancy and desired lifestyle. Furthermore, how much money they are able to save and invest will also come into play.

Couples looking for a comfortable and secure retirement should ensure their monthly income covers both regular expenses as well as any unexpected costs that may come up.

One of the first steps in determining what expenses you’ll need is creating a budget and understanding your spending habits. This will enable you to craft an organized plan that either you or a financial advisor can use to calculate how much income is necessary for your individual situation.

Another important factor to consider is your state tax rate and home values in the area where you live. A lower-tax state could help reduce taxes during retirement, saving you a considerable amount of money in the long run.

For instance, Alabama boasts an average tax rate of 0.41% and median home prices of $209,000; on the other hand, New Jersey boasts a 2.49% tax rate and median home price of $484,393, making these lower tax rates advantageous to retirees who can pay down debt faster and enjoy their savings more fully.

Expenses in retirement can include housing, transportation, food, healthcare and nonessentials. It may be difficult to estimate exactly how much money you will spend during retirement; however, creating a detailed budget is the best way to estimate your costs.

When planning for retirement, aim for an 80% replacement of your pre-retirement income. This may be challenging if you have a family or significant mortgage, but it is a reasonable goal that will keep living expenses within reach while not depleting savings too quickly.


The good news is that there are ways to boost your savings and invest in a way that could potentially boost your retirement income. A great strategy for saving money is creating a budget and balancing expenses with income. After that, work with an experienced financial planner to customize a savings plan tailored specifically for you.

Savings can come from a savings account or money market account at your bank, as well as high-interest CDs or IRAs. Alternatively, you could purchase an annuity – a fixed income product which will pay you a monthly check for life.

Couples in retirement typically aim to have at least three times their combined salary saved up by the time they reach 60 years old. However, this amount may change based on your age, needs and objectives.

Calculating how much to save depends on your anticipated income from Social Security, pensions and other sources. It’s wise to discuss your savings and spending plans with your spouse so that any adjustments can be made as needed.

Another popular savings strategy is to keep a substantial amount of cash on hand in case of emergencies. This can help cover unexpected bills like losing your job or experiencing car trouble.

Financial experts often suggest keeping two years’ worth of income in a liquid savings account that can be quickly accessed in case of emergency. This will provide protection during any economic downturns and give you peace of mind.

You could invest some of your savings into investments, which carry a higher risk but potentially yield returns over time. Popular options include stocks, bonds and mutual funds.

Social Security

Social Security benefits are an integral part of retirement for most. Without them, roughly 4 in 10 adults aged 65 and older would live below the poverty line, according to official estimates based on data from the 2021 Current Population Survey.

However, social security benefits will never fully replace a person’s former earnings. On average, they only cover around 40% of pre-retirement income, leaving an enormous gap that must be filled through other sources.

The amount of a monthly Social Security benefit depends on the age of the claimant and how long they worked. The Social Security Administration periodically adjusts maximum benefits based on wages, cost-of-living increases, and inflation.

Many retirees rely on Social Security benefits as their main source of retirement income, supplementing savings in tax-advantaged accounts and other investments. They may also help bridge any gaps left by a spouse’s accumulated retirement income which often is not enough to sustain two people comfortably.

Married couples can maximize their Social Security benefits by working together. If one person claims benefits early and the other waits until full retirement age, they may be able to accrue delayed retirement credits that increase both parties’ benefits as well as boost overall household income.

However, this approach may not always be ideal. If one spouse has lower earnings, the higher-earning spouse should claim benefits as soon as possible to give the other a chance to delay as long as possible.

The Social Security Administration (SSA) offers many online publications and calculators to assist potential retirees in calculating their Social Security benefits and other retirement-related matters. Many experts suggest couples consider hiring a financial planner for guidance on maximizing their lifetime retirement income through Social Security benefits.


Pensions are a common source of retirement income. These are usually calculated based on an employee’s salary and years of service, providing monthly payments upon retirement. It’s essential to understand the details surrounding your specific plan’s terms and conditions in order to maximize its benefit.

Most workplace pensions are defined contribution plans – this means your savings are invested and the income you receive depends on how well those investments perform. They’re an effective way to accumulate cash for retirement, although the amount returned in retirement may be less than what you invested initially.

Some people opt for Self-Invested Personal Pensions (SIPPs), which enable you to pick your own investments. SIPPS are an excellent option for those wanting more control over how their pension is invested and may be particularly suitable when making larger contributions.

Pensions are an excellent way to start saving for retirement and they’re tax-efficient too. You’ll receive tax relief on any contributions up to a certain limit if you’re a higher or additional rate taxpayer, meaning you could potentially claim even more benefits.

In addition to a pension, you may receive other forms of retirement income in your golden years, such as Social Security benefits and investment account distributions. These can help supplement your monthly income and guarantee you have enough funds for comfortable living during retirement.

Some people choose to work part-time or full time after retirement. This can be an excellent way to stay active and connected to family and friends. Furthermore, it provides the chance to acquire new skills and progress in one’s career.


The good news is that there are numerous investments which can provide a comfortable monthly retirement income. It’s just important to know how to select the right ones.

Investments are long-term commitments that require you to put money to work in order for it to increase in value over time. Typically, they offer better returns than other savings options such as CDs or savings accounts.

Some of the best investments to make for retirement include stocks and bonds. Over time, these assets can help boost your purchasing power with retirement income as well as provide tax-deferred compounding growth.

Another investment that can boost your monthly retirement income is life insurance. This policy not only covers you and your dependents, but it can also be used to fund a retirement account such as an IRA.

Other investments that can provide a comfortable monthly retirement income for you and your partner include real estate, mutual funds and stocks. These have the potential to grow faster than inflation during times of inflation.

If you’re uncertain which investments to make, consulting with a financial planner is recommended. They can assess your individual needs and suggest an investment portfolio tailored specifically for you.

Before anything else, you should determine your financial objectives and time horizon – that is, how long you plan to use your retirement savings. Your objectives could include anything from paying off a house down payment to having enough funds left until death do you part.

Your time horizon will determine how much risk you’re willing to take with your investment choices. Those with a shorter-term perspective, such as those saving for a home down payment, may benefit more from less risky options like savings accounts and CDs.

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