Dual-income couples can strengthen their retirement strategy by coordinating accounts, timing Social Security, managing taxes, and setting shared financial goals. Learn more from EP Wealth. 

How Dual-Income Couples Can Optimize Their Retirement Plans

For dual-income couples, building a retirement strategy is not just about saving more, it’s about coordinating efforts in a way that supports both partners' goals. With two incomes come opportunities for expanded account contributions, tax diversification, and more flexibility around timing decisions. But it also requires communication and planning.

Choosing the right approach depends on your specific circumstances and is best done with guidance from a financial advisor.

Here are a few key strategies couples may want to consider:

• Fund both 401(k)s to take advantage of employer contributions
• Explore spousal and Roth IRA options
• Consider when each partner will retire and claim Social Security
• Review catch-up contribution limits under SECURE 2.0
• Align investment strategies and withdrawal plans
• Plan for healthcare needs and estate considerations
• Revisit your plan regularly as life changes

Coordinate Retirement Accounts for Greater Impact

Leverage both employer-sponsored plans

When both spouses have access to workplace retirement plans, such as 401(k)s, each can contribute up to $23,500 in 2025—or $31,000 if age 50 or older. Doubling up on contributions can increase total savings and may expand employer match opportunities.

Consider a spousal IRA

If one spouse temporarily reduces income—for caregiving, sabbatical, or other reasons—the other can still contribute to an IRA on their behalf. This “spousal IRA” option allows up to $7,000 in contributions for 2025 (or $8,000 if 50 or older), offering continued access to tax-advantaged growth.

Add Roth IRAs and HSAs to the mix

Couples might benefit from Roth IRAs for future tax-free withdrawals, especially when in lower tax brackets. If eligible, Health Savings Accounts (HSAs) can be another tool for saving toward qualified medical expenses in retirement with potential triple tax advantages.

Align Retirement Timelines and Social Security Decisions

Coordinate retirement timing

One spouse may want to retire earlier while the other continues working, or both may aim to retire simultaneously. Either approach requires careful planning around cash flow, insurance coverage, and benefits.

Strategize Social Security claiming

Delaying Social Security can increase monthly benefits, particularly for the higher-earning spouse. In some cases, this may result in larger spousal or survivor benefits. Each couple’s decision will depend on health, income needs, and age gaps.

Use Tax-Efficient Strategies and SECURE 2.0 Opportunities

Catch-up contributions after age 50

Once each partner turns 50, they can contribute more to retirement accounts. The SECURE Act 2.0 also introduces higher catch-up limits for individuals between ages 60 and 63, creating opportunities to accelerate savings in later working years.

Understand Roth catch-up rules

Under SECURE 2.0, employees earning over $145,000 are now required to make catch-up contributions in Roth form if their plan permits. This may lead to greater tax diversification in retirement, but it’s important to weigh the near-term tax impact.

Review new tax credits

The legislation also introduced credits for small businesses that start new retirement plans with automatic enrollment. Dual-income couples who are business owners may want to explore these credits as part of their broader retirement planning strategy. 

Key Planning Areas for Dual-Income Couples

• 401(k) Accounts 
• Tax Strategies 
• Social Security Timing 
• Investment Planning
• Healthcare Coverage 
• Estate Planning 

Develop a Coordinated Investment and Withdrawal Plan

Unify your asset allocation strategy

While each spouse may have their own accounts, aligning overall asset allocation can help keep the household’s investments consistent with shared risk preferences and time horizons.

Consider a bucket approach and income tools

Some couples use a multi-bucket strategy, designating funds for short-term, intermediate, and long-term needs. Certain income tools, such as annuities, might be used to supplement retirement income, though these come with costs and complexity that should be carefully reviewed.

Monitor RMDs and potential Roth conversions

Once either spouse, born between 1951 and 1959, reaches age 73, Required Minimum Distributions (RMDs) may apply. Couples can consider how to manage these tax obligations and whether Roth conversions during lower-income years could help reduce their future tax liabilities. Spouses born 1960 or later have Required Minimum Distributions beginning at age 75.

Strengthen Communication and Shared Financial Vision

Schedule regular financial check-ins

Having open discussions about retirement timelines, spending goals, and investment strategies can help both partners stay aligned. A shared understanding of priorities may reduce friction and improve long-term planning outcomes.

Clarify financial roles and responsibilities

It can be helpful to decide who is responsible for managing contributions, reviewing investment statements, and handling tax coordination. This clarity can help avoid missed deadlines and overlooked decisions.

Prepare for Health and Estate Planning Needs

Coordinate healthcare coverage

Before Medicare eligibility at age 65, couples should assess how they will maintain healthcare coverage. If one spouse retires early, the other’s employer plan may be a temporary solution.

Evaluate long-term care and insurance

Long-term care planning is an important consideration, especially for couples who want to avoid placing the full burden of care or costs on one partner. Insurance needs, including life insurance, should be reviewed together.

Keep estate documents current

Wills, trusts, beneficiary designations, and durable powers of attorney all play a role in making sure a surviving spouse or heirs can act in accordance with your wishes.

Review and Adapt Your Plan Regularly

Rebalance after life changes

Job changes, family transitions, or major health events can shift your financial outlook. Revisiting your retirement plan after these moments helps keep your strategy current.

Stress test your retirement scenarios

Using retirement planning software or working with an advisor can help model different outcomes—such as retiring earlier, spending more, or enduring a market downturn—to identify potential gaps or trade-offs.

Consider working with a fiduciary advisor

A financial advisor who understands the dynamics of dual-income households can assist with investment planning, tax coordination, and aligning decisions with shared goals.

Next Steps for Dual-Income Retirement Planning

Dual-income couples often have more options at their disposal, but also more moving parts. By regularly reviewing their strategy together and seeking professional guidance when needed, couples can take steps toward building a retirement plan that reflects both their financial landscape and shared priorities.

Contact an advisor near you to discuss which retirement planning strategies may fit your situation.

DISCLOSURES

• EP Wealth Advisors, LLC. is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability.
• Request an appointment with an EP Wealth Advisor when you have a minimum of $500,000 in investable assets – which includes qualified retirement plans (IRA, Roth IRA, 401(k), taxable brokerage, cash (savings / checking) and CDs. Investable assets do not include your home, vehicles, or collectibles.
• Hiring a qualified advisor and/or financial planner does not guarantee investment success, and does not ensure that a client or prospective client will experience a higher level of performance or results. No guaranty or warranty is made that any direct or implied results or projections being represented here will be met or sustained.
• The need for a financial advisor or financial planner and/or the type of services required are specific to the uniqueness of each individual’s circumstances. There is no guarantee or warrantee that the services offered by EP Wealth Advisors, LLC will satisfy your specific financial services requirements. Services offered by other advisors may align more to your specific needs.
• Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment advice nor is it intended to supplement professional individualized advice.      
• EP Wealth Advisors (“EPWA”) makes no representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information presented. All expressions of option are subject to change without notice.
• All investment strategies have the potential for profit or loss. Different types of investments and investment strategies involve varying degrees of risk, and there can be no assurance that any specific investment strategy will be suitable or profitable for a client’s portfolio. The risk of loss can never be eliminated even if working with a professional.
• Please consult with a CPA, tax professional, and/or attorney regarding your specific situation before implementing any of the strategies referenced directly or indirectly herein.