Retirement planning is one of the most important steps you can take for financial security, but it becomes more complex when you are planning as a couple. Many households assume that one retirement plan is enough to support both partners. While this may seem convenient, in practice, it often leaves serious gaps. To understand why, let us look at retirement through two lenses: how life unfolds when only one spouse has a plan and how it changes when both have their own.
Daily Expenses and Lifestyle
Lens 1: One Plan
If only one partner has a retirement plan, the monthly income from that fund has to stretch across two people’s needs. The money that was designed for a single lifestyle now needs to cover everything from groceries to electricity bills to leisure activities. This often forces couples to scale down their expectations.
Lens 2: Two Plans
When both spouses have independent retirement savings, the combined income provides more flexibility. It becomes easier to maintain the lifestyle you have worked hard for and to support personal hobbies or interests without guilt.
Health and Medical Costs
Lens 1: One Plan
Medical costs can be unpredictable. A single surgery or a long-term health condition can eat into savings rapidly. If only one retirement plan is funding all expenses, the strain of high medical bills can reduce the overall corpus far sooner than expected.
Lens 2: Two Plans
When both spouses have their own retirement funds and insurance, the burden is divided. Even if one partner requires significant medical care, the other’s plan ensures that basic expenses and long-term needs continue to be met without compromise.
Timing of Retirement
Lens 1: One Plan
Couples often retire at different times, especially if there is an age gap. If one retires earlier, the single retirement plan may need to start paying out long before both partners stop working. This reduces the time for investments to grow and puts pressure on the corpus.
Lens 2: Two Plans
Separate plans give you the option to stagger withdrawals. The older spouse’s plan can cover the first few years of retirement, while the younger spouse’s plan can be kept invested for longer. This spreads out the financial responsibility and improves long-term security.
Longevity and Survivor’s Security
Lens 1: One Plan
One spouse is likely to outlive the other. If only one retirement plan exists, the surviving partner may face reduced benefits or delays in accessing funds, especially if nominations and paperwork are not in order. This creates unnecessary financial stress at a vulnerable time.
Lens 2: Two Plans
When each spouse has an independent plan, the survivor continues to receive income without relying on legal processes or adjustments. The presence of two separate funds ensures continuity and independence.
Personal Dreams and Aspirations
Lens 1: One Plan
Retirement is not just about covering expenses. One partner may wish to travel, while the other may want to start a small business or pursue studies. If there is only one plan, these aspirations compete with day-to-day necessities, often forcing sacrifices.
Lens 2: Two Plans
Two retirement plans allow for more freedom. One plan can support household needs while the other can help fund personal ambitions. This balance enables couples to enjoy both security and individuality in their retirement years.
A Simple Example
Imagine a couple where the husband has built a retirement corpus of ₹1.2 crore, while the wife has no independent savings. If the husband retires at 60 and passes away at 70, the surviving wife may struggle to fund her next 20 years of expenses, especially with rising healthcare costs and inflation.
Now imagine the same scenario, but with the wife also building her own plan of ₹50 lakh through provident funds, NPS or mutual funds. The couple together enjoys greater freedom while both are alive and the surviving spouse does not face the risk of running short of money later.
How Couples Can Strengthen Their Retirement
- Create separate retirement savings
Each spouse should build their own corpus, even if one earns more. This can be done through provident fund contributions, the National Pension System (NPS), voluntary retirement accounts or long-term mutual fund investments. Having individual accounts ensures both partners retain financial independence.
- Diversify across asset classes
Do not depend on one type of instrument. A balanced mix of fixed deposits, public provident fund (PPF), equity mutual funds, debt funds, NPS and annuity products can provide both growth and stability. Diversification protects against market volatility and inflation while ensuring liquidity for emergencies.
- Secure health and life cover
Medical costs can deplete savings quickly. Both spouses should have adequate health insurance, preferably with critical illness riders, to prevent retirement funds from being drained. Term life insurance is equally important so that the surviving spouse has immediate financial support in case of an untimely death.
- Review and rebalance regularly
Retirement planning is not a one-time activity. Couples should review their portfolios every two to three years. Rebalancing ensures that the mix of equity and debt matches changing risk levels, lifestyle needs and inflation. It also helps align the plan with evolving goals like children’s education or home renovation.
- Plan for staggered retirements
If there is an age gap, retirement timelines will not match. The younger spouse can continue contributing to investments while the older spouse starts withdrawals. This staggered approach allows one plan to keep compounding while the other provides income, improving long-term sustainability.
Final Word
Retirement planning as a couple is not just about preparing for expenses but also about visualising the life you want to build together. One of the most effective ways to do this is by quantifying your goals instead of relying on rough estimates. A retirement plan calculator helps you assess how much corpus each spouse should target, based on expected lifestyle costs, inflation, medical needs and the number of years after retirement.
This allows couples to avoid guesswork and clearly divide responsibilities for saving and investing. This ensures that both partners contribute in proportion to their income and future needs. The result is a retirement that feels planned, predictable and sustainable, where neither spouse feels overdependent on the other.