Planning for Retirement as a Stay-at-Home Spouse

By: Kimberly Foss

If your “good old days” were in the 1950s or 1960s, your image of a stay-at-home parent is probably a mom. In 1967, 49% of mothers in the U.S. did not work outside the home. That proportion fell steadily over the next decades, so that by 1999, only 23% of moms remained at home. However, the percentage rose slightly from 1999 to 2012, when 29% of women considered themselves “stay-at-home moms.”1 Currently, the figure sits at around 24%.2.

But these days, “stay-at-home parent” isn’t necessarily the mom’s role. According to a 2023 report from the Pew Research Center, almost 20% of stay-at-home parents are dads. About a third of them are not working outside the home due to illness or disability, 13% are retired, 13% are unemployed, and about 8% are attending school.3

Whether you are a stay-at-home mom or a stay-at-home dad, you can prepare for retirement. And just because you’re not working outside the home, you can still significantly help impact your financial readiness for the retirement years.

Get with the plan

A key requirement for a sound retirement plan is awareness. Even though you aren’t the earning spouse, you should still be familiar with the household finances: income, expenses and the budget for saving, spending and investing. Then, once you know where you are, you and your spouse need to develop a plan for where you want to be in retirement. What kind of lifestyle do you want? Is travel a priority, or will your retirement be built more around pursuing interests that lie close to home? Start working out what kind of budget will be required; this is a logical way to figure out what you’ll need in the nest egg when neither of you is earning income.

Forecast Social Security and pension income

Especially if you’re 50 years or older, you should set up a free online Social Security account.4 An online account can help make it harder for identity thieves to falsely claim benefits using your Social Security number. Once your account is set up, you can use the free online tools to estimate the Social Security benefits available when you reach retirement age. Note that even if you are a non-working spouse, you may still be eligible for a spousal benefit from Social Security. If you or your spouse is eligible for a pension, you need to estimate the monthly income provided by the pension.

Consider a spousal IRA

Even if you aren’t earning income, if you and your spouse file a joint tax return, you can have a spousal IRA. In 2025, each spouse can contribute up to the annual maximum ($7,000 for those under 50, plus an extra $1,000 for those 50 and older), but the total contribution cannot exceed the taxable earned income reported on your tax return.5 Note that a spousal IRA is not a joint account with your spouse; each spouse can have their account under their name and Social Security number. You can set up the account one of two ways:

Traditional IRA: Funded with pre-tax dollars, withdrawals in retirement are taxed as ordinary income, and required minimum distributions must begin by age 73.

Roth IRA: Funded with after-tax dollars, withdrawals in retirement are not taxed, and there are no required minimum distributions.

Retirement first, education second

Every parent wants to give their child the best start possible, including college or vocational training. But remember, while your kids can borrow to fund their education, you can’t borrow to fund your retirement. If your budget requires you to make a choice, prioritize your retirement savings over education funding. One of the best financial benefits you can bestow on your children is not having to support you in your old age.

Get a professional on your team

Finally, one of the best moves you can make – whether you’re a stay-at-home parent or not – is acquiring the services of a qualified, professional, fiduciary financial advisor. Your financial advisor can help you get a handle on your available resources and work with you to develop a plan designed around your unique circumstances. They can help you refine your budget, provide advice about investments, and guide a host of other important financial topics. When you’re venturing into unfamiliar territory, there’s no substitute for having a guide who knows the terrain.

At Mercer Advisors, we specialize in helping clients prepare for secure, satisfying retirement lifestyles. For more information on what you need to do to get ready for retirement or any other important financial goal, visit merceradvisors.com.

1 Galley, Jacob. “Stay-at-Home Mothers Through the Years: Monthly Labor Review.” U.S. Bureau of Labor Statistics, September 2014.
2 Werber, Cassie. “The number of stay-at-home mothers rose dramatically in the US last year.” Quartz, 16 May 2023.
3 Fry, Richard. “Almost 1 in 5 stay-at-home parents in the U.S. are dads.” Pew Research Center, 3 August 2023.
4 “My Social Security: How to Create an Online Account.” Social Security Administration, October 2023. 5 Royal, James. “What is a spousal IRA?” Bankrate, 1 November 2024.

All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change. The information is believed to be accurate, but is not guaranteed or warranted by Mercer Advisors. Content, research, tools, and stock or option symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. For financial planning advice specific to your circumstances, talk to a qualified professional at Mercer Advisors.

Mercer Advisors Inc. is a parent company of Mercer Global Advisors Inc. and is not involved with investment services. Mercer Global Advisors Inc. (“Mercer Advisors”) is registered as an investment advisor with the SEC. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements.