Catching Up on Retirement: Strategies for Couples Who Feel Behind
Retirement sneaks up faster than expected. Maybe you and your spouse have a decent chunk tucked away, but it’s not close to where you’d like it to be. Or perhaps you’re looking at your balances and thinking, “How on earth are we supposed to stretch this?”
The good news is, even if you feel behind, there are practical ways to boost your savings, protect what you’ve built, and head into retirement with more confidence.
Talk It Out and Team Up
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Money conversations aren’t always easy. Surveys show that plenty of couples think they’re on the same page, but many don’t even know exactly how much their partner earns. Others admit they get frustrated by each other’s money habits. Instead of letting that frustration simmer, set aside small chunks of time for money chats. Ten minutes once a month to look at one account or one topic can help you stay connected without turning it into a dreaded all-night budgeting session.
It’s also smart for both partners to be involved. When one person handles all the finances, the other can feel out of the loop, which isn’t helpful if something unexpected happens. Couples who make decisions together tend to feel more confident about their future, and it reduces stress if one partner suddenly has to take over the planning.
Get Serious About Catch-Up Savings
Once you hit your 50s, the IRS actually gives you a chance to put extra into your retirement accounts. In 2025, workers over 50 can contribute up to $8,000 to an IRA (this includes the $1,000 catch-up amount), and those in a 401(k) or 403(b) can add an additional $7,500 beyond the regular limit.
If you’re between the ages of 60 and 63, you can contribute even more, with a higher special limit of $11,250. These catch-up options are there to help you close the gap, so it’s worth squeezing them into your budget if possible.
Don’t forget about Roth IRAs, traditional IRAs, and health savings accounts. A Roth IRA grows tax-free, which can make a big difference if you expect to be in a higher tax bracket later. An HSA is another powerful tool since it covers medical costs tax-free, and after age 65, you can use it for anything, though you’ll pay regular income tax on non-medical withdrawals. Even a high-yield savings account paying 4% or more can work as a place for additional retirement cash if you’re already maxing out your main accounts.
Balance Investments and Manage Debt
As retirement approaches, most couples want less risk in their portfolios. A common strategy is shifting some money out of stocks and into bonds or cash to soften the impact of market swings. For couples in their 50s and 60s, a balanced mix of 40 to 60% stocks, 30 to 50% bonds, and 10 to 20% cash can help maintain growth potential without putting everything on the line.
At the same time, focus on reducing debt. Credit card balances with high interest rates can eat away at your retirement savings. Paying those down before you stop working is like giving yourself a raise. If you still have loans, consider refinancing to lower rates, but avoid piling on new debt close to retirement.
Plan for Health Care and Long-Term Needs
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Medical bills are one of the biggest surprises in retirement. Fidelity estimates that a 65-year-old retiring in 2025 will spend about $172,500 on out-of-pocket medical costs, even with Medicare. Retiring before 65 can mean buying private coverage, which can cost over $1,000 a month per person. It’s worth building these costs into your retirement budget now so they don’t derail your plans later.
Long-term care is another piece that many couples skip over. About half of retirees won’t face major long-term care expenses, but roughly 20% may need more than $250,000. Insurance can help, though it gets more expensive the longer you wait. Some couples choose to “self-insure” by setting aside a separate savings pot for potential care costs.
Shape Your Lifestyle Together
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Saving money is only part of the equation. Couples also need to decide how they want to spend their retirement years. Disagreements can arise about topics like where to live and how much to travel. All these and more can cause as much stress as financial shortfalls.
Testing out your vision can help. Take a month-long trial run in a new location or spend a few weeks living like you’re retired. See what works and what doesn’t. Some couples also spend too much on adult children or grandkids, which can push their retirement goals off track. Helping loved ones is fine, but set boundaries so your own security isn’t at risk. Remember, your retirement needs to come first.