Couples Retirement Planning Guide

An honest framework for the decisions at hand. Not tax or investment advice — your specifics matter.

Social Security for couples — the survivor math

• Survivor benefit = larger of the two benefits. The smaller benefit disappears at first death.
• Delaying the higher earner to 70 increases their benefit ~32% over FRA — and that higher amount is what the surviving spouse gets.
• For couples where one spouse's benefit is much larger: delay the larger, claim the smaller earlier. Often increases lifetime household benefits substantially.

Coordinating two sets of retirement accounts

• Maxing spousal IRA contributions even for a non-working spouse is an under-used strategy.
• Asset location across two sets of IRAs + 401(k)s + taxable is more complex — more opportunity for optimization.
• Beneficiary designations: never 'my estate'. Direct beneficiary designation skips probate and taxes.

Different retirement dates, different strategies

• Very common: one spouse retires 3-10 years before the other.
• The working spouse's income covers spend; early retiree can do aggressive Roth conversions at lower income.
• Health insurance often stays via the working spouse — ACA decisions shift significantly.

Long-term care planning

• Ignoring LTC is the biggest gap in most couples plans.
• 2024 data: 70% of people 65+ need some LTC; average cost $60-120K/year.
• Options: self-insure (typically needs $1M+ liquid), traditional LTC insurance (premiums rising), hybrid life+LTC products, Medicaid planning (requires 5-year look-back).
• The spouse left behind is most at risk — LTC planning is often really spouse-protection planning.

Estate planning for couples

• Basic: wills with pour-over to revocable trust, POAs, healthcare directives.
• At $5M+ combined: explore gift/estate tax planning (current exemption ~$13.6M per person in 2024, scheduled to halve in 2026).
• Portability election: unused first-spouse exemption can carry to second spouse via timely-filed estate tax return.