Retiring as a couple

Agree what the budget needs to cover

Start with common expenses such as housing, energy and food. Then include individual commitments and activities. Two people may have different expectations about travel, supporting relatives, continuing work or spending time at home. Putting these in numbers makes the conversation more concrete.

Separate essential costs from spending that could change. Decide how irregular costs will appear in the budget so they are not forgotten simply because they do not happen every month. Both people should be able to understand the assumptions.

Make a timeline for each person

List each pension, its owner, the earliest access date and the expected income or pot value. Add the date each person expects to stop or reduce work. The new State Pension is based on an individual's National Insurance record; one person's forecast is not a forecast for the household.

Obtain both State Pension forecasts and check the conditions attached to the estimates. Different ages can produce several stages: both working, one working, both retired, one State Pension in payment and eventually two. A budget may work in one stage and fall short in another.

An example of changing household income

Illustrative, not advice: a couple wants £32,000 annual income before tax. Existing pension income is £10,000, leaving £22,000 to find. If one State Pension later adds £12,000, the gap falls to £10,000. A second payment of £10,000 beginning three years after that would close this simplified gross-income gap.

This example assumes unchanged spending and income, and does not calculate either person's tax. It does not say whether the household's assets can sustain the earlier withdrawals. Our income gap calculator models one State Pension start date, so separate dates need a separate worksheet.

Consider what continues after a death

Ask each pension scheme what it would pay to a surviving spouse, civil partner or other dependant. Check annuity terms rather than assuming every annuity continues to a partner. Keep beneficiary nominations current and understand that the scheme's rules determine how benefits are paid.

Do not assume both State Pensions continue in full. Some inherited State Pension payments are possible under specific rules, but the survivor's position needs checking. Housing and utility bills also do not simply halve when one person dies. A separate survivor budget helps reveal this mismatch.

Keep an accessible record of providers and important documents. Knowing where information is held can matter as much as agreeing the headline retirement date.