Top Tips For Planning Retirement As A Couple

As with most matters in life, an approaching retirement age doesn’t just affect you, but your partner as well.

From holidays to extensions on your home, you’ll both know how to plan and save towards these goals, so why should retirement planning be any different?

Retirement is one of the great milestones of life, and as you’re likely to enjoy it together, why wouldn’t you plan for it together?

The key to successful retirement planning as a couple though comes down to communication.

It’s vital you’re both upfront about what you want from retirement, whether those goals are joint or individual. Respecting each other’s separate needs is just as important as your couple’s goals.

And remember, you don’t need to merge your finances in order to have a joint plan!

Here we share our expert tips on retiring as a couple and how to prepare for the unexpected.

Navigating Pension Benefits With Your Spouse

Most of us will have accumulated various pension pots over our working years. Whether that be workplace pensions or a private pension (Self-Invested Personal Pension). And, of course, we can’t forget the UK State Pension.

So when it comes to accessing or taking your pension benefits, it’s important that both partner’s needs and preferences are considered.

And, you can’t forget about account survivor benefits, as the timing of claims can affect your surviving partner’s future income.

Understanding The Tax Implications Of Marriage In Retirement

Marital status significantly influences tax rates and liabilities in retirement, often offering benefits like spousal allowances.

If you’ve both reached the age of 55 and are looking to access your pension, this requires careful consideration. Each of you can take 25% of your pensions tax-free, but any withdrawals above and beyond that will be with subject to income tax – with the potential impact of these affecting you both over the long-term.

For full details on pension taxation and how this affects you and your partner, you can read Do You Know How Your Pension is Taxed?, you might be surprised by what this covers.

Timing Your Retirement: Should You Retire Together?

Retiring at the same time offers the advantage of shared experiences like holidays and extra time to enjoy your joint hobbies. However, it may put a strain on your finances, especially if both partners rely heavily on pension benefits.

Staggered retirements can ease this strain, providing a continued source of income and potentially maximising pension benefits by allowing one partner’s investments to grow for longer.

If you’re thinking about private health insurance, retiring at the same time might lead to higher premiums, whereas staggered retirements could balance the costs over time.

To decide the right time for each of you to retire, a proper financial plan can go a long way. You need to think about your couples’ retirement goals as well as your own. These are the big ‘What For?’ questions – What do you want your lives to be like in retirement?

When you’ve got these answered, you can then move on to the finer details such as evaluating your pension pots and any other assets you have such as property or investments and anticipating expenses, such as potential healthcare costs.

While this can seem a daunting task, you don’t have to do it on your own. At Joslin Rhodes, we have been delivering happy retirements to Teessiders for over 20 years and can help you too!

Ensure Your Beneficiaries Are Up To Date

For many of us, leaving a legacy to loved ones is just as important as having a comfortable retirement ourselves. So, even if you’ve done all the right things including designating your pension beneficiaries and setting up your Wills and Powers of Attorney, things change.

Regularly reviewing and updating beneficiaries is vital. Life events such as marriage, divorce and the arrival of children can significantly impact decisions regarding beneficiaries.

But if you haven’t yet set up your estate plans, don’t leave this to chance. Now’s the time to ensure that your money and property goes to the people you choose, not to Care Fees, or worse the taxman! Our local Estate Planning experts are just a call away and happy to help.

Preparing for the Unexpected: Divorce And Retirement Assets

Nobody likes to discuss the topic of divorce, but unfortunately, it’s something which affects nearly half of us who decide to tie-the-knot. Whether this is your current marriage or a union which was previously dissolved, it’s important that you understand how this can have a bearing on your retirement assets and that plans are made accordingly.

To learn more about the implications of divorce and how to protect yourself, take a look at our When Divorce Happens blog.

Seek The Support And Advice You Need

There are many factors to consider when planning a joint retirement strategy; some of which you’ll both be aware of and others which would be uncovered with some professional pension advice.

At Joslin Rhodes we can assist you with:

• Pensions & Retirement Planning – Helping you determine when you can afford to retire and manage your cash flow in retirement, so you can enjoy your later years with confidence.
• Estate & Inheritance Planning – Ensuring your loved ones are cared for after you’re gone and minimising the impact of care fees on your estate.
• Equity Release – Free up funds that have accumulated in the value of your home to use as you’d like.

Our expert Financial Planners can also provide guidance on:

• The common mistakes in savings strategies for dual income couples.
• The Importance of both partners contributing to retirement accounts.
• Advice on balancing and increasing contributions.

If you’re interested in a free, personalised, no-obligation consultation, get in touch today.

We also run regular Estate Planning and Pension Workshops at our unique Planning Rooms location in Stockton-on-Tees, so if you fancy a couple’s night out, this is the place to be! Book your place here.

Joslin Rhodes Pension & Retirement Planning – Real Advice, For Real People