What is a good monthly retirement income for a couple?
Discover how much monthly income a married couple should have to enjoy a comfortable retirement. Or, if you want to speak directly to a financial advisor, answer a few questions below, and we’ll find one suited to your unique needs.
Summary
According to various research and experts in the field, it’s recommended that retirees will need about 80% of their annual pre-retirement income once they retire.
The average income after taxes for households between the ages of 65 and 74 is around $5,266 a month.
How much tax you pay in retirement will depend on your filing status, income sources, and annual income; however, the IRS offers an additional standard deduction for seniors, which can help reduce their tax liability.
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What is a good monthly retirement income for a couple?
According to various research and experts in the field, it’s recommended that retirees will need about 80% of their annual pre-retirement income once they say goodbye to their 9-5.
For example, this means if you and your spouse or partner had a combined income of $100,000 annually pre-retirement, you would need at least $80,000 annually to maintain the same lifestyle or over $6,600 a month.
However, if you know you will be enjoying a less expensive lifestyle, you can reduce this percentage accordingly. Similarly, if you are spending more money, you will need to raise the annual amount.
According to the U.S. Bureau of Labor Statistics, in 2022, the average income after taxes for households between the ages of 65 and 74 was $5,266 a month. For those over the age of 75, it was lower at $3,994.
How much you’ll need will depend on your personal circumstances, including how much you plan to spend each month, if you have any outstanding debt, and whether you plan any big expenses.
While determining your monthly income, you also need to consider the longevity of your savings alongside your monthly needs.
Most financial experts recommend a 4% savings withdrawal rate per year to ensure your savings last throughout retirement.
How much money does a couple need to retire?
Unfortunately, there is no magic number when it comes to how much you’ll need to retire, but there are a few common rules of thumb.
One such benchmark is ensuring you have 10-12 times your final working year’s salary. Another suggests you should have seven to eight times your combined annual salary by age 60 to retire comfortably.
For couples who earn a combined annual salary of $100,000, these strategies mean you would need between $700,000 and $1.2 million.
However, how much a couple needs to retire will depend on various personal factors, such as:
When you want to retire
How much you plan to spend in retirement
How long you need your retirement savings to last
How much you think you’ll earn on your retirement savings
If you need help determining how much you’ll need for retirement, you can use our free retirement calculator below:
How much do couples get from Social Security?
For many Americans, Social Security benefits are an important source of income in retirement.
According to the Social Security Administration (SSA), the average check was $1,782.74 as of July 2024.
If both spouses qualify for this amount, married couples will receive just over $3,565 monthly or just over $43,785 annually.
However, how much Social Security you receive each month varies from person to person, with your age, average earnings, and length of work all determining your final amount.
You can use the Social Security calculator to calculate your estimated benefit here.
Social Security covers both spouses, regardless of whether both or just one has worked.
A married person can receive benefits based on their earnings or receive a maximum of 50% of their spouse’s benefits, whichever is greater.
However, they must be aged 62, have a child under 16, or who is receiving Social Security disability benefits.
For married couples who both receive Social Security, there are strategies you can deploy to maximize your benefits.
One of these strategies is waiting to collect the higher earner’s check, if possible.
As the monthly amount you receive increases, the longer you wait to take it, up until the age of 70, the amount of the higher earner's check will be worth more than increases on the lower earner’s check.
How much are couples taxed in retirement?
How much tax you pay in retirement will be determined by your filing status, retirement income sources, and your total annual income.
Ultimately, how much federal income tax you pay will depend on the tax bracket you fall into.
Below is a breakdown of the tax brackets for 2024:
| Single | Head of Household | Married filing jointly | Married filing separately | |
|---|---|---|---|---|
| 10% | $11,600 or less | $16,550 or less | $23,200 or less | $11,600 or less |
| 12% | $11,601 to $47,150 | $16,551 to $63,100 | $23,201 to $94,300 | $11,601 to $47,150 |
| 22% | $47,151 to $100,525 | $63,101 to $100,500 | $94,301 to $201,050 | $47,151 to $100,525 |
| 24% | $100,526 to $191,950 | $100,501 to $191,950 | $201,051 to $383,900 | $100,526 to $191,950 |
| 32% | $191,951 to $243,725 | $191,951 to $243,700 | $383,901 to $487,450 | $191,951 to $243,725 |
| 35% | $243,726 to $609,350 | $243,701 to $609,350 | $487,451 to $731,200 | $243,726 to $365,600 |
| 37% | Over $609,350 | Over $609,350 | Over $731,200 | Over $365,600 |
Due to the increased costs associated with getting older, such as medical expenses, the IRS also provides an additional standard deduction on top of the regular standard deduction for those over 65. This helps seniors reduce their tax liability.
Your filing status and if you are blind will determine how much your additional deduction is worth.
The amount for 2024 is as follows:
| Filing status | Taxpayer is | Additional standard deduction in 2024 |
|---|---|---|
| Married filing jointly or separately | 65 or older or blind | $1,550 per qualifying individual |
| Married filing jointly or separately | 65 or older and blind | $3,100 per qualifying individual |
| Single or Head of Household | 65 or older or blind | $1,950 |
| Single or Head of Household | 65 or older and blind | $3,900 |
What state you live in will also play a role in how much tax you pay in retirement.
Multiple states exclude retirement income from taxation, including Alaska, Florida, Illinois, Iowa, Mississippi, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
Get personalized retirement advice
As you approach retirement, it’s more important than ever to get expert advice and ensure you have enough money to enjoy your golden years without any financial uncertainty.
This approach will look different for everyone.
With Unbiased, we connect you with an SEC-regulated financial advisor based on your unique needs, meaning you get personalized advice tailored to your situation.
The first meeting with your advisor is completely free, meaning you can get a feel for the relationship before you decide to continue.
Simply answer a few questions about your needs, and we’ll take care of the rest.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.