Retirement planning as a couple sounds simple enough: save, invest, retire, and enjoy. But when two people bring different careers, retirement dates, Social Security benefits, spending habits, and ideas of what retirement should actually look like, there are quite a few moving pieces.
The good news? You don’t need to have every detail figured out today. But you should be having the conversations. Think of this as a retirement checklist for couples, a way to make sure you’re planning for the same retirement, not two different ones.
Start With the Fun Part: What Does Retirement Actually Look Like?
Before getting into account balances and tax brackets, talk about what you’re retiring to.
One spouse may picture traveling several times a year, while the other is perfectly happy with a quiet morning, a cup of coffee, and nowhere to be. Neither is wrong, but those two retirements may have very different price tags.
- Identify each spouse’s ideal retirement age.
- Decide whether to retire at the same time or a few years apart.
- Discuss where you want to live in retirement.
- Outline your expectations for travel, hobbies, and family time.
- Consider whether either spouse wants to work part-time.
- Define what a successful retirement looks like for both of you.
- What would make us feel like we’re having a successful retirement?
You don’t need identical answers. You just need to know what each person is thinking.
Figure Out What Retirement Will Cost
Once you have an idea of what retirement looks like, put some numbers behind it. Start with what you’re spending today, then think about what may disappear and what may increase. The mortgage might eventually go away, but travel could increase. You’re no longer commuting to work every day, but suddenly Tuesday afternoon is wide open, and somehow that tends to cost money.
- Estimate your monthly retirement spending.
- Separate essential expenses from lifestyle spending.
- Account for larger purchases such as vehicles, renovations, or vacations.
- Build healthcare costs into your retirement budget.
- Establish an emergency reserve for unexpected retirement expenses.
The goal isn’t to predict every dollar you’ll spend at age 78. It’s to give yourselves a realistic starting point.
Coordinate Social Security Instead of Looking at It Separately
For married couples, Social Security shouldn’t necessarily be two independent decisions. Claiming early may provide income sooner, while delaying can create a larger monthly benefit. Survivor benefits can be tied to the higher earner’s benefit, one spouse’s claiming decision can eventually affect the other.
- Review each spouse’s estimated Social Security benefit at 62, full retirement age, and 70.
- Identify any spousal benefits that may be available.
- Evaluate how continuing to work could affect benefits claimed before full retirement age.
- Review the survivor benefit available to each spouse.
- Determine whether Social Security income will be needed immediately upon retirement.
Sometimes the best claiming strategy isn’t about maximizing one person’s benefit. It’s about creating the strongest income plan for the household.
Know Where Your Retirement Income Will Come From
Most couples don’t retire with one giant account labeled “Retirement Money.” Instead, they may have a collection of 401(k)s, IRAs, Roth accounts, pensions, Social Security benefits, brokerage accounts, and cash. That’s where a withdrawal strategy becomes important.
- List every investment and retirement account.
- Categorize accounts as pre-tax, Roth, or taxable.
- Review pension options and survivor elections.
- Establish where income will come from during the first few years of retirement.
- Evaluate whether Roth conversions make sense before RMDs begin.
- Review how withdrawals could affect your tax bracket and Medicare premiums.
Having enough money is important. Knowing how to use it efficiently is a different part of the equation.
Don’t Forget About Healthcare
Nothing says “romantic retirement planning conversation” quite like Medicare. Still, healthcare can become one of the largest expenses in retirement, particularly when spouses retire at different ages.
- Determine when each spouse becomes eligible for Medicare.
- Establish healthcare coverage for any spouse who retires before age 65.
- Understand Medicare Parts A, B, and D and supplemental coverage options.
- Account for premiums, deductibles, prescriptions, dental, and vision expenses.
- Develop a plan for how you would handle a long-term care event.
- Evaluate how higher retirement income could affect Medicare premiums through IRMAA.
Healthcare planning may not be the most exciting part of retirement, but surprises in this category tend to be expensive ones.
Talk About Taxes Before Retirement, Not Just After
Retirement doesn’t necessarily mean your tax bill disappears. It just changes where your taxable income comes from. The years immediately after retirement can sometimes present planning opportunities, particularly if your income falls before Social Security and required minimum distributions are fully in the picture.
- Estimate your tax situation during the first several years of retirement.
- Review opportunities for Roth conversions.
- Understand how Social Security benefits may be taxed.
- Plan for future required minimum distributions.
- Review charitable giving strategies if philanthropy is important to you.
- Evaluate the tax consequences before selling highly appreciated investments.
A little tax planning today can provide considerably more flexibility later.
Make Sure the Investment Strategy Evolves with You
The portfolio that helped you get to retirement may not be the same portfolio you want once you’re relying on it for income. Retirement introduces a new challenge: withdrawals. A major market decline feels different when you’re contributing every paycheck than when you’re taking money out every month.
- Review your overall stock and bond allocation.
- Confirm that both spouses are comfortable with the amount of investment risk being taken.
- Identify where the first several years of retirement withdrawals could come from.
- Review any concentrated stock positions.
- Coordinate investments across both spouses’ accounts.
- Establish a plan for market downturns to help avoid emotional decisions in the moment.
You don’t necessarily have to become dramatically conservative when you retire. The investment strategy simply needs to match the job your money now has to do.
Have the “What If One of Us Is Alone?” Conversation
This may be the least enjoyable item on the checklist, but it’s one of the most important. Eventually, one spouse may have to manage the finances alone. Income can change, taxes can change, and the surviving spouse may suddenly be responsible for financial decisions that the other person handled for decades.
- Identify what income will continue after the first spouse dies.
- Review Social Security survivor benefits.
- Review pension survivor elections.
- Make sure both spouses know where accounts and important documents are located.
- Review and update beneficiary designations.
- Confirm that wills, powers of attorney, healthcare directives, and trusts are current.
- Make sure both spouses understand the financial plan, not just the spouse who normally handles the money.
A good retirement plan should work while you’re both enjoying retirement together and provide a roadmap if one person eventually has to carry it forward alone.
Put It All Together
Retirement planning for couples isn’t about finding one perfect retirement age, investment allocation, or Social Security strategy. It’s about coordinating dozens of smaller decisions so they’re all working toward the same goal.
You don’t need to complete this entire checklist over one Saturday morning, and your spouse may appreciate it if you don’t try.
Instead, start with the bigger conversations. What do we want retirement to look like? What matters most to us? What are we worried about? From there, the numbers become much easier to put into perspective.
Because at the end of the day, a retirement plan isn’t just about making the money last. It’s about making sure the two of you can enjoy what you spent all those years working and saving for.