Taxation benefits for married couples

Married couples receive financial benefits when both partners have savings in place, claim financial experts.

MDM Associates has said there are possible higher tax allowances on pensions and potential inheritance tax advantages from joint savings.

Lisanne Mealing, director for MDM Associates, said: “With investing in pensions, you’re losing out on some pretty good tax allowances if you only fund on one [partner's] side and not the other.”

She added that in terms of income payments, “it’s easier to have the income split in retirement; because, again, you’re going to pay less tax… You’re taking full advantage”.

Ms Mealing also said that women’s income is usually spent on household items, incidentals and holidays whereas the husband’s earnings will be used for financial planning.

However, a recent report from the Fawcett Society warned that women are likely to struggle financially for a longer period following a divorce than a man, as women are less likely to have savings in place.

Tags: director, financial planning, earnings, retirement, Taxation benefits, good tax allowances, pensions