Retirement income planning for dual-income households

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We’re excited to share insights from Dr. Joe Krupka, CPA/PFS, CGMA, a seasoned expert in financial planning and education. With a Doctorate in Business Administration from Georgia State University, a Master’s in Accounting from Binghamton University, and a Bachelor’s in Accounting from Rochester Institute of Technology, Dr. Krupka brings decades of knowledge and experience to our student body and the College.

💡 Dual-Income Household Planning Tips from Dr. Krupka
Dr. Krupka emphasizes key strategies for managing dual-income households:

1. Maximize Contributions Across Accounts

• Double up on 401(k)/403(b)/457 plans: Each partner can contribute the annual maximum—$23,500 in 2025, or $31,000 if age 50+.
• Roth IRAs & HSAs: Use Roth IRAs for tax-free withdrawals and HSAs for triple tax-advantaged healthcare savings.

2. Coordinate Retirement Timelines

• Staggered retirement: If one retires earlier, plan for interim healthcare coverage and income needs.
• Social Security optimization: Delaying benefits—especially for the higher earner—can boost spousal and survivor benefits.

3. Diversify Tax Strategies

• Balance pre-tax (e.g., traditional 401(k)) and post-tax (e.g., Roth IRA) savings to manage future tax liabilities.
• Consider living off one income and saving the other to accelerate wealth accumulation.

Top Mistakes Dual-Income Households Should Avoid

1. Planning in Silos

• Treating retirement planning as two separate efforts instead of a unified household strategy.
• Solution: Align goals, timelines, and investment strategies. Use joint planning tools or dashboards to visualize shared progress.

2. Underestimating Lifestyle Inflation

• Two incomes often lead to higher spending, which can erode savings potential.
• Solution: Consider living on one income and saving the other—especially during peak earning years.

3. Neglecting Tax Diversification

• Overloading on pre-tax accounts (e.g., 401(k)s) without balancing with Roth or taxable accounts.
• Solution: Diversify across account types to allow for flexible, tax-efficient withdrawals later.

4. Ignoring Social Security Optimization

• Claiming benefits too early or without coordinating spousal timing.
• Tip: Optimizing Social Security benefits for dual-income households is like solving a financial Rubik’s Cube—there are dozens of combinations, but the right one can unlock thousands of extra dollars over a lifetime.

5. Overlooking Healthcare Planning

• Not accounting for healthcare costs, especially if one partner retires earlier.
• Solution: Use HSAs, explore COBRA or ACA options, and factor in long-term care insurance if needed.

💬 Community Question: Which of these strategies do you already use—or plan to implement—in your household? Share your approach in the comments!