Retirement planning for married couples: what to consider and how much to save 

Fewer than one in five people have discussed their pensions or retirement plans with their partner, according to research from UK life and pensions mutual insurer LV=.  

According to Hargreaves Lansdown, nearly half of households are on track for a ‘moderate’ retirement when both partners make big financial decisions together, compared to 41% who leave this to one partner, showing the importance of joint planning.  

While it can be stressful thinking about retirement planning, it’s essential to plan together to ensure you both enjoy retirement after decades of hard work. 

We explore what you should consider. 

How much does a married couple need to save for retirement?

According to the Retirement Living Standards, how much to save for retirement depends on the desired lifestyle of the married couple. 

These living standards are: 

• Minimum: £21,600 each year. With this amount saved, a married couple’s basic needs will be covered, plus a little remains for a UK holiday, dining out once a month, and some leisure activities.  

• Moderate: £43,900 each year. With a ‘moderate’ amount saved, a married couple can enjoy more than the minimum standard, with a holiday abroad and a long weekend break in the UK, as well as more flexibility with dining out and takeaways. 

• Comfortable: £60,600 each year. A married couple can enjoy the above and longer breaks in the UK, as well as spending more on leisure activities and days out.  

The amounts you must both save vary significantly based on how much you need, so it’s important to talk to your spouse about what kind of lifestyle you both desire.  

Once you have a clear idea of what your ideal retirement looks like together, start planning for retirement.

To estimate how much you may need to save and check whether you're on track, use our pension calculator.

While you can plan your retirement together, consulting a qualified financial adviser can help ensure you stay on track with any pension savings targets and optimise your pots, as well as plan for anything unexpected. 

What does a married couple need to consider when retirement planning? 

There are many things that a married couple must consider when planning their ideal retirement together, which we’ll explore below.  

Having a clear picture of the ideal retirement is vital, as well as understanding how much each individual has saved, including in their pensions, to help with retirement planning.  

What’s the planned retirement age?

It’s essential to determine when you both plan to retire – for example, are you planning to retire in your mid-50s, 60s, 70s, or even earlier? 

If you’re both planning to retire before you can access the state pension, you’ll have to rely solely on private pensions until you reach the right age and consider how to bridge any shortfall in the interim. 

With the state pension, it’s worth checking if you’ll both be eligible for the full amount, as this depends on an individual’s national insurance records.  

Should you pay off your mortgage before retirement?

If you own a home together and have a mortgage, you may want to consider paying off your mortgage as early as possible, as it’s a huge monthly expense.  

Overpaying your mortgage each month can help reduce the amount of interest due and shorten the overall term.  

As a married couple’s property loan-to-value (LTV) ratio, the amount of money you are borrowing compared to the value of your home, reduces, it’s more likely that a better rate will be offered, helping to pay off the loan faster. 

What insurance policies should a married couple have before retirement?

It’s also worth ensuring that both of you have life insurance, which can cover any outstanding mortgage in the event of one of you passing away. 

Other insurance policies may be able to offer financial help if the unexpected happens, such as income protection (if either of you is working) or a critical illness policy.  

An insurance broker or financial adviser can ensure you both have insurance policies that are suitable for your specific circumstances and goals. 

It’s also worth ensuring you both have a will, up-to-date beneficiary forms and a lasting power of attorney in place in case the unexpected happens.

Planning for healthcare costs

Unfortunately, it’s likely that as you both age, your health will decline, so you’ll need to consider healthcare costs and how to fund any treatment. 

While you can set aside money for this, a married couple could consider an immediate needs annuity to cover the cost of long-term care. 

It’s worth considering expert financial advice, as there are pros and cons to consider; an immediate needs annuity may not be suitable for everyone.  

Do you want to support your children financially?

If you have children or plan to start a family, it’s worth thinking about whether you want to set aside funds to help them financially.  

For example, you may want to set aside some money for a house deposit or university fees. If you start planning early, a junior individual savings account (ISA) can help you both build a nest egg for your child as they grow up. 

The earlier you open an account (whether it’s a cash or stocks and shares one), the more it can benefit from interest or returns, which will likely increase over time thanks to compound interest. 

With a junior ISA, a married couple doesn’t need to put away a considerable amount – you can make small monthly contributions. 

What about pensions?

Everyone has an individual pension allowance and ISA annual allowance, which can be useful for married couples if one partner is at risk of exceeding these allowances and incurring a tax charge. There’s also the marriage allowance, which can save a partner up to £252 in a tax year.  

It’s a good idea to consider how each partner will access their pensions and how much they plan to withdraw.  

Consulting with a financial adviser can ensure that a married couple accesses their funds in a tax-efficient manner and have sufficient funds throughout retirement.  

Currently, pensions can be passed on to beneficiaries tax-free if an individual dies before the age of 75. If they die over the age of 75, the pension will be taxed at the beneficiary’s income tax rate.  

From April 2027, this will change, as any unspent pension funds and death benefits will be subject to inheritance tax if you exceed the threshold.  

As the details are still emerging about the changes, it’s worth seeking expert advice to help navigate them, as well as ensuring you’re both sharing the necessary information.  

Review your finances regularly

Once a married couple has established a retirement plan, it’s crucial to review it regularly, especially in the event of any major life changes. 

For example, how are the pensions performing (if left in drawdown)? Are any savings pots in decent shape, and how are any investments performing? Do there need to be any changes to accessing pensions? 

A financial adviser can help review overall finances and make recommendations.

Here's a quick summary of what married couples need to consider when planning for retirement:

Get expert retirement and pension help

Planning for retirement as a couple involves balancing many moving parts, from setting your ideal lifestyle and managing mortgages to considering healthcare, inheritance rules, and how to make the most of pensions and allowances.

While it’s possible to take steps on your own, professional advice can help ensure nothing is overlooked, your money is working as hard as possible, and your plans remain on track when circumstances change.

Speaking to a qualified financial adviser gives you peace of mind that your retirement strategy is tailored to your goals and that both you and your partner are fully prepared for the future.

Unbiased can match you with a qualified financial adviser who can help.