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.
• ASPE/HHS data: 70% of people turning 65 will need some LTC in their lifetime; ~20% for 5+ years.³ 2025 national medians: $74K/yr assisted living, $115K/yr semi-private nursing.
• Options: self-insure (typically needs $1M+ liquid), traditional LTC insurance (premiums rising, many carriers exited), hybrid life+LTC products, Medicaid planning (requires 5-year look-back under DRA 2005).
• The spouse left behind is most at risk — LTC planning is often really surviving-spouse protection.

Estate planning for couples

• Basic: wills with pour-over to revocable trust, financial and healthcare POAs, advance directives, updated beneficiary designations.
• At $5M+ combined: explore gift/estate tax planning. Federal estate/gift exemption for 2026 is $15M per individual (OBBBA, July 2025, made permanent) — previously-scheduled 2026 sunset is gone.¹
• Portability election under IRC § 2010(c)(5)(A): unused first-spouse exemption (DSUE) can carry to the surviving spouse via timely-filed Form 706 estate tax return.²

Sources

1. IRS — 2026 Inflation Adjustments (OBBBA permanent $15M exemption).
2. IRC § 2010(c)(5) — Portability of DSUE. Timely-filed Form 706 required.
3. HHS/ASPE — Lifetime Risk of Needing LTC.
4. SSA — Maximizing Benefits for Couples (survivor benefit mechanics).
5. IRS — Spousal IRA Contribution (working spouse can contribute for non-working spouse).

Couples planning verified against 2026 estate exemption rules, SSA survivor mechanics, and HHS LTC data.