Planning for retirement can feel overwhelming, especially when you’re doing it as a couple. It’s crucial to create a budget that reflects both partners’ needs and goals. Here are three diverse examples of retirement budgeting for couples, designed to help you visualize how to allocate your resources effectively and enjoy your golden years together.
This couple, John and Sarah, are in their early 60s and plan to travel extensively during retirement. They want to ensure they have a budget that allows for regular trips while still covering their living expenses.
John and Sarah begin by estimating their monthly expenses. They calculate:
Their total monthly expenses come to \(4,050. Since they expect to receive \)3,000 from Social Security and \(1,500 from John’s pension, they need to withdraw an additional \)550 from their savings each month to meet their budget.
Notes: To make their travel fund more effective, John and Sarah decide to set aside any leftover budget from their entertainment category at the end of each month to boost their travel savings. This flexible approach allows them to adjust their travel plans based on how much they spend in other areas.
Lisa and Mark, both 58, prefer a quieter retirement lifestyle focusing on home improvement and investing. They want to create a comfortable and beautiful home while ensuring they have extra funds for unexpected expenses.
They calculate their monthly expenses as follows:
This totals to \(4,250 per month. Mark has a retirement account that provides \)2,500 monthly, and Lisa will receive \(1,500 from her pension. With an additional \)250 needed from their savings, they plan to contribute $400 to their emergency fund monthly.
Notes: To maximize their savings, Lisa and Mark decide to take on some home improvement projects themselves, reducing costs and enhancing their DIY skills. They also consider investing in rental properties for passive income in the future.
Emily and David are both 62 and looking for a mix of leisure and practicality in their retirement. They want to balance their spending between enjoying life and ensuring long-term financial stability.
Their monthly expenses are estimated as follows:
This adds up to \(4,400 monthly. They expect to receive \)3,500 combined from Social Security and pensions, so they need to withdraw $900 from their nest egg each month.
Notes: Emily and David regularly review their budget together, adjusting their savings and leisure spending based on their lifestyle preferences. They also set aside funds for unforeseen medical expenses, ensuring they are fully prepared for any surprises.