Retirement planning can be a complex task, but when you’re planning as a couple, it can be an even tougher process.
However, this doesn’t need to be the case.
When you approach your finances in the right way, you can build your wealth together in the right way, so you can both enjoy your retirement in the way you’ve always imagined.
Let’s look at what to consider when retirement planning as a couple.
1. Expert financial advice
When building any type of financial plan, expert advice can be a highly beneficial component in designing the right steps – especially when retirement planning as a couple.
Your financial adviser can conduct a full assessment of your income, which might include your collective assets as well as any individual accounts you own. This can give your expert a clear picture of your financial situation as a couple.
They can then learn about your shared future goals and what you want to achieve when you retire. With tailored advice that’s directly suited to your unique situation, you’ll have the right recommendations to build your wealth effectively.
2. Your pension allowances
You can also consider how your annual pension allowances might impact your wealth, and what you can do regarding them.
The current annual pension allowance for the 2023/2024 tax year is £60,000, meaning you can save tax efficiently into your pension up to this amount.
If you’re retirement planning as a couple, this means you essentially have a combined pension allowance of £120,000, which you can make the most of each year.
Your adviser can help you know when and how much to contribute to your pensions, so you both fully utilise your allowances and maximise your savings for the future.
This can help you collectively build a significant sum of money over time, which can be put towards your goals when you both retire.
3. Investing in the right way
There are a range of investment options that can help you grow your wealth towards retirement, and you and your partner can consider a few to benefit your finances.
Your adviser can help you find appropriate investments to ensure the most suitable way to allocate your assets – from pensions and Individual Savings Accounts (ISAs) to property investments.
As discussed above, you can both invest in a pension to make the most of your allowances. When it comes to the type of investments made, your adviser can help you choose the right risk levels for your money.
These risk levels can depend on your individual finances if that proves a more beneficial option.
Your adviser can also offer you a range of diversified portfolios so you can find a suitable investment for your financial situation.
4. Tracking your wealth
As a couple, you’re likely to have several accounts between you that hold your wealth. This is why you should consider ways to effectively monitor them.
For instance, you can access online wealth-building tools with a modern wealth management service. You can manage all your accounts from one central platform, so you have full visibility of your wealth and investments at all times.
Depending on your ages, you and your partner might be ready to retire at different times. Your adviser can help you use these tools to plan out your future contributions and align them with when you’re each likely to retire. This way, you can adjust your investments and allocate your assets more effectively.
Retirement planning need not be any more difficult when planning as a couple. In fact, it can prove highly beneficial when you have the right steps in place to collectively build your wealth.
If you’re unsure of how to structure your approach, speak to a financial adviser who can help you design the right plan to meet both of your financial requirements.
Please note, the value of your investments can go down as well as up.