Retirement planning looks different for couples with one income. Follow these expert tips

Retirement planning takes on a unique approach for couples who have only one source of income. Christine Benz and Valentina Djeljosevic, experts in the field, shared insights on the specific needs of such families. When facing the decision of having a single earner, couples should focus on their household budget and consider how the available income will impact their retirement savings. They should also think about the spouse who might return to work later, as this could present challenges in terms of workforce re-entry.

To ensure they don't fall behind on retirement planning, couples need to continue funding retirement plans, meeting any matching contributions in their 401(k) plan, and funding Individual Retirement Accounts (IRAs). If the earning spouse has enough earned income, an IRA can be opened for the non-earning spouse, allowing retirement assets to compound.

Another strategy is reverse budgeting, where savings targets are set, and any leftover funds can be spent, which can be particularly helpful for those living on a single income.

Emergency funding is crucial for single-income families. Benz advises setting aside a year's worth of anticipated spending in liquid reserves. If this reserve is exhausted, other sources like permanent life insurance, home equity, or a home equity line of credit can be considered. These reserves should be kept in a taxable brokerage account, as emergency funds in retirement accounts would incur taxes and penalties.

When it comes to Social Security decisions, Benz recommends maximizing benefits for both partners' lifetimes. In single-earner households, the primary earner may benefit from delaying Social Security filing to increase the eventual benefit, especially if predeceasing the spouse. It's essential for couples to consult professionals and make informed decisions together regarding Social Security claims.