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