Six simple ways couples can make the most of their money
1. Start with shared goals
Setting out what you want to achieve together is the foundation for any successful financial plan. This includes short‑term priorities such as building an emergency fund, saving for a first home, or planning for a family. It also encompasses long‑term ambitions like moving up the property ladder, retiring comfortably, or shaping your estate plans.
When both partners feel aligned in their ambitions and how to achieve them together, it becomes much easier to make confident, consistent decisions. It’s invaluable to block out some time every week or every month (whichever is right for you) to make sure you’re on the same page.
2. Be open about your finances
Financial transparency builds both trust and clarity. Sharing details of income, savings, debt, spending habits and your approach to risk helps you create a plan that reflects your true situation. It also reduces the chance of surprises later on and ensures both partners feel equally involved and invested.
When it comes to managing money, each couple is different, and what works for someone else might not work for you. Try out different things and see what feels right for your situation. Some couples like to keep their accounts separate; some like to have one joint account; some have a shared account for joint expenses, while keeping their own individual accounts.
3. Make the most of your pensions
Pensions are still a powerful way to save tax‑efficiently. You can usually access your pension from age 55, rising to 57 from April 2028. Each tax year, you can usually get tax relief on your pension contributions up to 100% of your earnings or £60,000 – whichever is lower. This is known as the annual allowance. Any unused part of this allowance can be carried forward for three years if you’re eligible.
If one person is a higher-rate taxpayer, prioritising contributions could increase the combined tax relief you receive. Using both allowances means unlocking two sets of advantages, creating a compounding effect that can significantly increase your retirement savings over time.
4. Use your individual savings account allowances as a team
Individuals in the UK can save or invest up to £20,000 each tax year across individual savings accounts (ISAs). Together, a couple can put up to £40,000 a year into their ISAs. This creates a valuable tax‑free savings and an investment pool that can be accessed flexibly, helping you build long‑term resilience and opportunity.
5. Reduce tax through spousal transfers
For investments held outside ISAs or pensions, tax‑free spousal transfers (which apply equally to married couples and civil partners) allow couples to balance income or capital gains between them. This could help you make use of both partners’ allowances and ensure investment growth is taxed at the lower‑rate partner’s level where possible.
You could also consider making use of the marriage allowance. This allows someone earning less than £12,570 to transfer up to £1,257 to their spouse, potentially saving up to £252 a year in tax.
6. Plan ahead for inheritance tax
Transfers between spouses and civil partners are generally exempt from inheritance tax (IHT). With thoughtful planning, many couples can pass on up to £1 million tax‑free by combining their allowances and the residence nil‑rate band. This ensures more of your wealth goes to the people and causes you care about.
Building a stronger future together
Working as a team doesn’t just make financial planning easier – it can unlock opportunities that wouldn’t be possible alone. Whether you’re just starting out or looking to refine your long‑term plans, the right guidance can help you make the most of the allowances already available and set up a smoother, more secure financial future.
If you’d like to review your financial plan to make sure your money is working harder for you, our advisers are here to help. Reach out to your usual Rathbones contact or fill out our enquiry form below.
