When it comes to retirement planning, there are a lot of factors to consider. How much money do you need to save to live comfortably during your golden years? What will your monthly income look like? How long will your retirement savings last? These are all important questions that couples need to answer before they retire. This guide will discuss some of the most important things to consider when planning retirement. We will also provide tips on creating an income that will last a lifetime!
- How Much Does A Couple Need For Retirement?
- What Is A Good Monthly Retirement Income For A Couple?
- How Much Does A Married Couple Need To Retire?
- How To Provide An Income That Will Last A Couples Lifetime?
- Couples Retirement Comparison
- Retirement Income Planner For Married Couples
- Next Steps
- Frequently Asked Questions
- Related Reading
- Request A Quote
How Much Does A Couple Need For Retirement?
This is a question that does not have a simple answer. There are many factors to consider when determining how much money you will need in retirement. These factors include age, health, lifestyle, and where you plan to live.
If you are young and healthy, you may get by with less money than someone older and with health issues. However, your lifestyle also determines how much money you will need. For example, if you are planning to travel the world or live a luxurious lifestyle, you will need more money than someone content with staying home and taking it easy.
The best way to determine how much money you will need in retirement is to speak with a financial advisor. They can help you create a personalized retirement plan that considers all your unique circumstances.
What Is A Good Monthly Retirement Income For A Couple?
Again, there is no one-size-fits-all answer to this question. It depends on factors like age, health, lifestyle, and where you plan to live. However, there are some general guidelines you can follow.
If you want a comfortable retirement, you should aim for a monthly income of at least 70% of your pre-retirement income. So, if you and your spouse currently bring in a combined monthly income of $5000, you would need to have a retirement income of at least $3500 per month.
Of course, this is just a general guideline. You may need more or less money depending on your specific circumstances.
How Much Does A Married Couple Need To Retire?
Again, there is no one-size-fits-all answer to this question. It depends on factors like age, health, lifestyle, and where you plan to live. However, there are some general guidelines you can follow.
If you want a comfortable retirement, you should aim for a retirement nest egg of at least $500,000. This will give you a monthly income of $2500, enough to cover basic expenses and live a modest lifestyle.
Of course, this is just a general guideline. You may need more or less money depending on your specific circumstances.
How To Provide An Income That Will Last A Couples Lifetime?
The only guaranteed option is to purchase an annuity. This insurance policy will provide an income for the rest of your life.
Annuities with a guaranteed lifetime income rider will provide payments as long as you both live, no matter how long that is, and can be a good option if you’re concerned about longevity risk.
For example, a 60-year-old couple purchases a $500,000 annuity with a lifetime income rider and wants to retire in 5 years at age 65. They would receive about $40,000 a year, or $3,300 per month, for as long as they live. When the first spouse dies, the annuity will continue to pay the $3,300 monthly payment for the remaining surviving spouse’s lifetime. After both spouses die, the remaining balance in the annuity will pass down to beneficiaries in a lump sum.
Lifetime payments can also increase each year to help keep up with inflation.
Couples Retirement Comparison
In addition to learning how to save for retirement, a retiree needs to learn how to spend their retirement savings efficiently. Historically, the safe rule of thumb is to spend 4% of your retirement accounts to generate your annual income, but is this strategy maximizing your potential?
Nope.
The table below compares withdrawals from various retirement accounts
| Features | Annuity | 401(k) | IRA | Roth IRA |
|---|---|---|---|---|
| Withdrawal Percentage | 5.20% – 6.55% | 4% | 4% | 4% |
| Can Income Increase? | Yes | Yes | Yes | Yes |
| Can Income Decrease? | No | Yes | Yes | Yes |
| How Long Will Money Last? | Lifetime | 30 Years+ | 30 Years+ | 30 Years+ |
| Annual Fees | 0 – 1.50% | 1% – 4% | 1% – 4% | 1% – 4% |
| Taxation | Taxable/Tax-Free | Taxable | Taxable | Tax-Free |
| Death Benefit | Account Balance | Account Balance | Account Balance | Account Balance |
Example: A 60-year-old retiree starts withdrawing immediately from their $1 million portfolio, they would receive:
- Annuity: Between $52,000 and $61,000 per year
- 401(k): $40,000 per year
- IRA: $40,000 per year
- Roth IRA: $40,000 per year
Retirement Income Planner For Married Couples
When it comes to planning for retirement, there are several factors to consider. One of the most important is how you will ensure a steady income stream once you stop working.
For many people, an annuity is the best solution. An annuity is an insurance policy that provides a guaranteed income for life. This means you can rest assured that you will have money to cover your basic expenses, even if your investment portfolio takes a hit.
Plus, with a spouse retirement calculator, you can see how much income you and your partner can expect from your annuity. This can help to make the decision-making process more manageable. In addition, an annuity can give you peace of mind knowing that you will have money to live on in retirement.
Next Steps
Although an annuity is a guaranteed income, shopping around and comparing rates is essential. Contact us for a quote so you can find the best rate and start planning for your retirement with peace of mind. Thanks for following our blog series on retirement planning! We hope you found it helpful.
Request A Quote
Get help from a licensed financial professional. This service is free of charge.
Frequently Asked Questions
How much does a couple need for retirement?
The truth is, there is no one-size-fits-all answer to these questions. How much money you will need in retirement depends on factors like age, health, lifestyle, and where you plan to live. However, the general rule is that you will need 70% of your pre-retirement income (total household) to live comfortably.
Related Reading
*Disclosure: Some of the links in this guide may be affiliate links. I may receive a commission at no cost if you purchase a policy. It helps us keep the lights on!