Retirement planning for couples: making sure you’re on the same page

Retirement is often seen as the reward for decades of hard work – a chance to enjoy more freedom, spend time together and pursue the things that matter most. But while couples may share a vision of their ideal retirement, they may not always agree on the details, from when to stop working to how much money they will need.

Getting these conversations started early can make a real difference. By bringing individual aspirations and financial arrangements together, couples can build a retirement plan that works for both partners, helping them approach the next chapter with greater confidence.

Start by talking about your retirement goals

One of the most important steps in retirement planning is understanding what each partner wants from this next stage of life. For some, retirement means travelling, taking up new hobbies or spending more time with family. For others, it might involve moving home, working part-time or simply enjoying a slower pace of life.

These ambitions may overlap, but they will not necessarily be identical. One partner might be keen to retire as soon as possible, while the other enjoys their career and wants to continue working. Similarly, one might favour adventurous holidays and a second home, while the other prefers financial security and a quieter lifestyle.

There is no right or wrong approach. The key is to discuss expectations openly and establish shared priorities, while recognising that each person should retain the freedom to pursue their own interests.

It is also worth considering the everyday reality of retirement. How will you spend your time? Will you have separate hobbies and social circles? What happens if one partner retires several years before the other?

Thinking through these questions can help avoid misunderstandings and ensure retirement feels like a positive transition for both.

Understand your combined financial position

Once you have a clearer idea of what you want, the next step is to establish whether your finances can support it.

Couples often accumulate retirement savings separately, through different workplace pensions, personal pensions, ISAs and other investments. Bringing these together into a single overview can help you understand the resources available to fund your future lifestyle.

Start by listing your assets, outstanding debts, regular expenditure and expected retirement income. Include workplace and personal pensions, your State Pension entitlements, savings, investments and any other sources of income.

It is important to check each partner’s individual State Pension forecast and when they can claim it. Differences in National Insurance records, working patterns and pension arrangements can mean that one partner expects to receive considerably more than the other. The government’s retirement planning guidance provides a useful starting point.

Next, estimate your likely spending in retirement. Some costs may fall, particularly commuting and work-related expenses, while others could rise as you spend more on leisure, travel or helping family members. Allow for inflation and the possibility that retirement could last 25 years or longer.

The aim is to establish whether your expected income will cover your essential expenditure while leaving enough flexibility to enjoy the retirement you have planned.

Make the most of your pensions

Pensions are likely to be central to your retirement finances, but couples should look beyond the combined value of their pension pots.

Consider how much each partner is contributing, whether employer contributions could be increased and whether there is scope to make additional contributions while still working. Tax relief can make pension saving attractive, although the benefits depend on individual circumstances and the applicable allowances.

It is also worth reviewing how pension investments are structured, taking account of your retirement dates, attitudes to investment risk and the time your money may need to last.

When retirement approaches, couples should consider how they intend to turn their savings into an income. Options include taking a guaranteed income through an annuity, using pension drawdown to retain investment flexibility, or combining different approaches.

The right solution may differ between partners. One might value the certainty of a guaranteed income, while the other prefers greater flexibility. What matters is understanding how the different arrangements work together to support your household’s needs.

Tax also deserves attention. The timing and amount of pension withdrawals can affect how much income tax each partner pays. Coordinating withdrawals with other income sources may help improve tax efficiency, although pension access rules, allowances and individual circumstances need to be considered carefully.

Plan for differences in income and retirement dates

It is not unusual for one partner to have accumulated more retirement savings than the other. Career breaks, part-time work, caring responsibilities and differences in earnings can all contribute to an imbalance.

Rather than focusing solely on the size of each person’s pension, consider how your combined resources will support both partners throughout retirement.

Depending on your circumstances, this could mean reviewing contributions before retirement, building savings in an ISA, or considering how household expenditure will be shared when one partner stops working before the other.

Couples should also understand the benefits and limitations of their pension arrangements. Not every pension provides an income for a surviving spouse or civil partner, and the treatment of benefits on death varies between schemes and products. Reviewing these provisions can help ensure the surviving partner is not left facing an unexpected financial shortfall.

Build flexibility into your plans

Even the best retirement plan cannot predict everything. Investment markets fluctuate, inflation can erode purchasing power, and health or family circumstances may change. You may also decide to retire earlier or later than originally intended.

Building some flexibility into your finances can help you respond to these changes without losing sight of your long-term goals. This might involve maintaining accessible savings, reviewing expenditure regularly or retaining some scope to adjust discretionary spending when necessary.

It is equally important to revisit your retirement plans together. An annual review provides an opportunity to check progress, discuss changing priorities and make adjustments before small issues become bigger concerns.

Professional financial advice can help couples assess different scenarios, understand their options and develop a coordinated strategy for retirement income, investments and tax planning.

Make retirement a shared plan

Retirement planning is about more than reaching a particular savings target. It is about making sure both partners understand their financial position, feel comfortable with the decisions being made and have a realistic plan for the future they want to share.

Starting the conversation early, bringing your finances together and reviewing your plans regularly can help turn retirement from an uncertain prospect into an achievable goal.

The next step

At Kellands, our independent financial planners can help you bring your retirement plans together, assess your options and develop a strategy designed around your individual circumstances and shared ambitions. Contact us to discuss how we can help you plan for a retirement that works for both of you.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The Financial Conduct Authority does not regulate cashflow planning or tax planning.

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