WEDDING NEWS

After the excitement of receiving a wedding invite, thoughts might turn to big-day gifting; what do you buy the couple who lives together and has everything? Money might feel impersonal, but Susan Hope, retirement expert at Scottish Widows advises on financial gifts for newlyweds.

“Couples often look forward to receiving an abundance of beautiful gifts from friends, family and loved ones as part of their wedding day celebrations," says Susan. "But there are equally, and in some ways even more valuable, financial gifts that can be given and discussed between soon-to-be-wed couples too. Having clear and open conversations about money ahead of tying the knot is really important. It’ll ensure you’re both on the same financial page and can work towards shared goals once you are married.”  

1. Top up your loved one’s pension
“While I’m particularly partial to sparkly gifts and jewellery…I also confess to loving pensions. Saving into a spouse’s pension via a lump sum or monthly payments, also known as third party contributions, is a helpful, but often overlooked, financial planning tool. Not only can it maximise tax relief for those who have used up their allowance, but it can also provide a helping hand to your spouse if they haven’t been able to build up their own retirement savings. 

“Currently, you can contribute up to £2,880 per tax year into a non-working person’s pension, and this contribution receives basic 20% tax relief, making the total amount in the pension £3,600. Doing this is especially useful for women who need to take time out of work to have children or care for relatives, as it can help to plug gaps in pension contributions while their earning power is limited. Remember, your spouse won’t be able to access these funds until they reach the age of 55 (rising to 57 from 2028).

2. Save on tax together 
“Getting hitched can mean that you are eligible for extra tax savings. The Marriage Allowance can enable eligible married couples and civil partners to save up to £252 of tax per tax year, depending on your income. This tax saving happens when one spouse has an income lower than the level needed to make full use of their tax-free personal allowance (£12,570 for 2024/25). 

“In the gift giving spirit, should you or your spouse be eligible, the spouse with the unused personal allowance can elect to transfer £1,260 of their allowance to their partner, offering a tax saving of just over £200. It’s a small win but can continue to help further strengthen your financial and martial future.

3. Think about you and your beloved's future 
“Ensuring you both have a clear picture of each other’s pension savings, know how to track down any lost pots you’ve built up in working life, and have a view on how you’d like to spend retirement together is key. This year’s Pay Your Pension Some Attention campaign offers tons of information and guidance on how you can both discuss your future financial hopes and set in place plans to achieve them. 

“While it’s far from romantic, thinking about what might happen to your pension if you pass away is really important. An expression of wish document tells your pension provider who you want your pension savings to go to if you pass away before retirement. 

“For married couples and civil partners with a final salary scheme, a surviving spouse will typically receive survivor benefits based on the final salary pension which has been built up by their partner. Each provider will have their own rules on spouse payouts, and while thinking about this part of life isn’t the happiest, it could mean you’re setting your beloved spouse up with a valuable financial gift if something does happen.

4. Give a gift to yourself 
“Going down the aisle with your eyes wide open to each other’s financial health is important. This will ensure you head off into the sunset together understanding the state of your joint and individual finances – and should avoid any nasty or surprising money shocks down the line! While having a joint account is very common among married couples, ensure you build your own emergency pot, in your name, to retain your financial independence. 


5. Set a “Money date”
“With all the wedding planning out of the way, having to make even MORE plans may not sound appealing. However, making time to regularly talk about and check in on your finances as a married couple is really important. This needn’t be a formal event and can be light-hearted or dare I say it… fun! By agreeing to a date you are saying, “I respect you and our marriage, and I am committed to us and our financial wellbeing, now and in the future”. As well as being on neutral territory, changing up the scenery can really do wonders in shifting how you both respond to the conversation.”