What is a Good Monthly Retirement Income for a Couple?

For couples planning retirement, one of the most pressing questions is: what is a good monthly retirement income? Financial planners often suggest replacing 70–80% of pre-retirement income, but the truth is it depends on lifestyle, location, health, and goals. In the U.S. and Canada, studies show retired couples spend anywhere from $3,000 to over $8,000 per month. Let's explore benchmarks, cost-of-living differences, healthcare, common mistakes, and how to use tools like the Retirementize Budget Calculator to find your personal number.

Understanding Retirement Income

Retirement income is more than just pensions. In fact, most couples will draw from multiple sources. These may include government programs like Social Security in the U.S. and CPP and OAS in Canada, employer pensions, registered plans like 401(k)s, IRAs, RRSPs, RRIFs, and TFSAs, as well as savings, investments, annuities, and rental properties (see our rental income guide).

Couples also benefit from economies of scale—two can live more cheaply together than alone—but shared expenses do not mean identical spending habits. One partner may dream of traveling the world, while the other prefers quiet hobbies at home. Aligning expectations is as important as counting dollars.

Why Couples Have Different Needs Than Individuals

Retiring as a couple introduces complexity. Shared housing reduces costs, but healthcare expenses may double if both partners face health challenges. Couples also need to consider survivor benefits (U.S. and Canada) to ensure that one spouse isn’t left financially vulnerable.

Factors That Affect a Couple’s Retirement Income Needs

Lifestyle Choices

A couple who plans to live frugally—gardening, local travel, and paid-off housing—may thrive on $3,500 per month. Contrast that with a pair who travels internationally, dines out weekly, and keeps two vehicles; their monthly budget may exceed $8,000. See our article on frugal retirement for inspiration.

Location and Cost of Living

Where you retire can make or break your budget. In the U.S., couples in Mississippi or Arkansas often spend less than $4,000 per month, while those in California or Massachusetts may require $8,000 or more (see state tax breakdown). In Canada, retirees in New Brunswick may find $4,500 sufficient, while Ontario or British Columbia may demand $6,500 or more. For those dreaming of international retirement, compare with our Thailand vs. USA cost comparison.

Healthcare and Longevity

In the U.S., healthcare is one of the largest retirement expenses, with Fidelity estimating that a 65-year-old couple will need over $315,000 (USD) for medical costs throughout retirement (Fidelity, 2023). In Canada, provincial healthcare covers much, but prescriptions, dental, and long-term care are out-of-pocket. Couples should also plan for longevity: a healthy 65-year-old woman today has a 50% chance of living to 90, meaning retirement may last 25–30 years.

Debt and Obligations

If you still carry a mortgage or consumer debt, your monthly needs will spike. Supporting adult children (kids staying home longer) or aging parents also adds strain. Debt-free living is often the key to a lower retirement budget.

How Much is “Good”? Benchmarks for Couples

Example Monthly Budgets

Financial planners often group couples into three categories:

Basic lifestyle: $3,000–$4,000/month. Covers housing, groceries, modest entertainment, limited travel.
Moderate lifestyle: $5,000–$7,000/month. Comfortable home, travel once or twice a year, more dining out.
Comfortable/High lifestyle: $8,000+/month. Frequent travel, new cars, private healthcare, generous leisure spending.

The 70–80% Replacement Rule

A common guideline is replacing 70–80% of your working income. A couple earning $100,000 per year may need $70,000–$80,000 annually in retirement, or about $6,000–$6,700 per month. However, this rule ignores personal circumstances—hence the need for calculators like our Retirement Income vs Savings Calculator.

Personalizing Your Number

No one lives by averages. Couples should track their current monthly spending, then project forward. Use the Retirementize Budget Calculator to model scenarios with inflation and healthcare adjustments. You may find that your “good” income is higher or lower than generic benchmarks.

How to Calculate Your Own Retirement Income Needs

A Step-by-Step Approach

Write down your current monthly expenses.
Adjust for post-retirement changes (commuting down, healthcare up).
Add inflation (2–3% annually).
Include taxes (see RRSP Withdrawal Tax Calculator or IRA withdrawal rules).
Build in a 10–15% cushion for surprises.

Using Online Tools

Manual math is tedious. That’s why we built the Retirementize Budget Calculator. It lets you plug in your numbers, test different lifestyles, and compare U.S. and Canadian contexts. Other tools exist—like the Dave Ramsey Calculator—but Retirementize is designed specifically to answer the monthly income question.

Strategies to Reach Your Target Income

Once you know your number, it’s time to build a plan:

Maximize government benefits: Claim Social Security wisely (why delay CPP?, or take it early?).
Invest smartly: Balance RRSPs, TFSAs, 401(k)s, and IRAs with tax efficiency.
Diversify: Rental income, annuities (learn about annuities), and part-time work (see job ideas).
Control expenses: Downsizing, debt payoff (mortgage vs. saving), and smart budgeting.

Common Retirement Planning Mistakes Couples Make

Some missteps keep showing up in surveys and case studies:

Underestimating healthcare and long-term care costs.
Ignoring inflation over decades.
Overestimating investment growth (see common mistakes).
Not planning survivor income.

Example Scenarios

Couple A: Teachers in Ohio, retired debt-free, modest lifestyle. They spend about $4,200/month and are comfortable with Social Security plus pensions.

Couple B: Professionals in Toronto, love to travel. They require $8,500/month, supported by CPP, OAS, RRSP withdrawals, and rental income. Their planning started early, and they avoided the RRSP meltdown trap.

Fun Facts

According to Statistics Canada, the average retired couple spends about $64,000 CAD per year (2022).
In the U.S., the Bureau of Labor Statistics reports retired households spend about $53,000 USD per year (2022).
Couples often underestimate healthcare costs by 40% in surveys (Fidelity study, 2023).
Over 30% of retired couples continue to carry debt into retirement (TransUnion, 2022).
The happiest retirees aren’t the richest—they’re the ones with meaningful activities (see secret to happiness).

Conclusion

So, what is a good monthly retirement income for a couple? It depends—but benchmarks suggest $3,000–$4,000/month covers basics, $5,000–$7,000 provides comfort, and $8,000+ supports luxury. Your actual number depends on lifestyle, health, and location. The smartest approach is to calculate your personalized budget using the Retirementize Budget Calculator. Don’t settle for averages—design the retirement that works for you.

Want to know exactly what “good” looks like for you? Use the Free Retirementize Income Calculator today and start shaping a retirement income plan that matches your dreams.