According to the US Census Bureau, the average US couple in retirement brings in an annual income of $75,254. That’s a combination of retirement savings, social security, annuities, and reverse mortgages. Can you count on more or less than that when you retire? A good retirement planning session with your partner can help you determine what your actual numbers are.

How to calculate your retirement income needs

Take your total monthly expenses and multiply them by twelve. That’s your annual financial requirement for shelter, transportation, and sustenance. Your retirement income needs to exceed that number, preferably by a lot. There’s a big difference between simply surviving and living your best life when you retire. Who doesn’t want to freely enjoy their golden years? Limit non-essential expenses like expensive cable TV packages and take-out. Recreation costs may increase when you retire, so be generous when adding those to the total. Add another 10% for incidentals and unexpected health care expenses when the list is complete. Armed with those numbers, you can start planning for retirement.

How to increase your retirement savings

Most financial experts recommend that you have a minimum of seven times your annual household income set aside in a retirement savings account. That’s your target number. If you started saving in your twenties, you should hit that easily. If not, you may need to take advantage of the “catch-up” rules the IRS has in place for workers over 50 years old. Eliminating debt while you’re still working gives you the bandwidth to put more money aside in your retirement savings accounts. The IRS has set a maximum annual contribution limit of $22,500 per year for 401(k) plans, but that number goes up to $30,000 per year after you turn fifty years old. Pay off your debt and contribute the maximum if you can. The IRS also allows you to contribute an additional $6,500 ($7,500 after 50) to a traditional IRA or Roth IRA. Roth contributions are made with after-tax dollars, so distributions in retirement will be tax-free. That will come in handy as you get older. Traditional IRA contributions are tax-deferred. You’ll get the tax break now, but you’ll need to pay them later.

Timing your distributions and social security benefits

Retirement savings accounts are investment accounts. They grow with compounded returns, dividends, and interest payments, so leaving the money in those accounts as long as possible is recommended. The required minimum distribution (RMD) age for 401(k)s, and 403(b)s is currently 73 years old. Roth IRAs do not have a required minimum distribution age. Filing for social security should also be delayed as long as possible. You can start taking it at 62, but you’ll receive less than the maximum. If you wait until after your 67^th birthday to file, you’ll get 108% of your monthly benefit. Wait until 70, and you’ll get 132%. Those numbers become significant as you get older, particularly if you don’t have sufficient retirement savings. The Bottom Line You can increase your retirement savings by eliminating debt and contributing the maximum amount the IRS allows to your retirement savings accounts. Financial experts typically recommend saving at least seven times your annual household income. Shoot for that and delay distributions and filing for social security as long as possible.