State pensions
In the UK, each person has their own State Pension based on their National Insurance contributions. There’s no joint pension for couples, so both partners build up their own entitlement. Each person’s State Pension might be different, and will start to be paid at a different time. Checking your State Pension from time to time can be a good idea. You can do this at Check your State Pension forecast - GOV.UK.
Combining pension contributions
You can’t merge two people’s pensions into one, but you can contribute to your spouse’s pension in some cases. Some pension schemes allow spousal contributions, which can be useful if one partner earns significantly more. If this sounds like it might work for you, speak to your pension scheme and they will talk you through this.
For our pension schemes, as we receive contributions directly from employers, it isn't possible for spouse’s or partners to pay into our pensions on someone else’s behalf. But, you could think about your finances as a whole and redistribute income and money so that you can both continue saving into your own pensions.
Survivor benefits
Some pensions offer survivor benefits, meaning your partner may receive a portion of your pension if you pass away. For some pensions, this is built in and will happen automatically. For others you will need to choose this option. If you do choose this, your pension will be less. You often need to choose this at the time you access your pension. Think carefully about your spouse or partner’s life expectancy, as if they do not outlive you, the spouse or partner’s pension will not be paid out.
It can be a good idea to check if your pension includes death benefits or a lump sum payout for your spouse.
Tax benefits
Married couples may benefit from tax advantages, such as the Marriage Allowance, which lets one partner transfer part of their tax-free allowance to the other. This is the best place to find out more - Marriage Allowance: How it works - GOV.UK.
Retirement planning together
Every few years, it can be worthwhile sitting down together and looking at both your pensions. Spend a bit of time getting updates from all your pensions, and then consider how much you’ll need as a couple for a comfortable retirement. The Retirement Living Standards suggest a couple needs £43,100 per year for a moderate retirement lifestyle.
If you’re on track for the retirement income you want, keep going. If you are slightly behind, you still have time to save more.
Updating beneficiaries
There can often be money due from pensions when you die. To make sure this goes to the people you want it to go to, check your pension provider has up-to-date beneficiary details.
For our pensions, you can do this online at PensionsOnline.
