In brief
Couples mode runs a single projection for two people simultaneously — independent tax calculations per partner, shared spending, and a modelled transition when the first partner dies.
In plain English
A joint projection is more accurate than two separate individual projections because many household costs are shared rather than doubled. Running two separate models also misses the tax benefits that come from having two sets of allowances.
Couples mode tracks each partner's assets and income independently, calculates tax separately for each, and applies shared spending correctly throughout. When the first partner's life expectancy is reached, the model adjusts income, spending, and assets automatically — the survivor's projection continues from that point.
How FutureClear models it
Partner profiles and asset ownership
Each couple scenario is built on two profiles. Each asset in the asset register carries an owner field: Partner 1, Partner 2, or Joint. FutureClear tracks each partner's SIPP, ISA, and GIA separately for tax purposes throughout the simulation.
Joint assets — typically the primary residence or shared cash savings — are attributed to the household rather than to either individual.
Spending
Spending events in couple mode carry a type:
- Household spending (fixed): Applies the same amount regardless of how many partners are alive. Used for costs that do not change with household size — rent or mortgage payments, for example.
- Per-person spending: Multiplied by the number of living partners. When both partners are alive, the amount doubles. When one partner dies, it halves.
Most couples use a combination: a household base amount plus per-person discretionary spending.
Life expectancies and the death transition
Life expectancies for each partner are set per scenario. The simulation runs to the later of the two.
When the first partner's life expectancy is reached:
- Their income sources (employment, SIPP drawdown, State Pension where applicable) cease.
- Their per-person spending share is removed.
- Their remaining assets stay in the projection and continue under the survivor's management.
- The survivor's assets and income continue as normal.
The year of the first death typically appears as a step-change in income in the cashflow table, which may require higher withdrawals from assets to cover remaining spending.
Independent tax allowances
FutureClear applies separate tax calculations for each partner each year. Each person has their own:
- Personal Allowance: £12,570. Combined threshold: £25,140 before income tax applies to either partner.
- CGT Annual Allowance: £3,000 per person. Combined: up to £6,000 of capital gains per year before CGT applies.
- Dividend Allowance: £500 per person. Combined: up to £1,000 of dividends per year within the allowance.
- ISA Allowance: £20,000 per person. Combined: up to £40,000 per year across both ISAs.
FutureClear applies Marriage Allowance automatically where eligibility conditions are met — if one partner's income falls below their Personal Allowance while the other is a basic rate taxpayer, up to £1,260 of unused allowance is transferred, reducing the higher earner's tax by £252 per year.
Pension inheritance
If a partner dies before age 75, their drawdown pot can be inherited by the survivor free of income tax. After age 75, the survivor pays income tax at their marginal rate on withdrawals from the inherited fund. Pension funds passing to a surviving spouse or civil partner are currently outside the deceased's estate for Inheritance Tax purposes, though this will change: from April 2027, unspent pension funds will fall within the deceased's estate for IHT under changes enacted in Finance Act 2024. FutureClear does not currently model IHT on pension death benefits — for users with large SIPP balances expecting to pass them on, the post-death asset values in the projection are an upper bound. The engine models the death transition and the remaining asset values continue in the projection for the surviving partner.
Withdrawal order in couple mode
Withdrawal order applies across both partners' assets. Configurable split methods determine which partner's accounts are drawn first when a shortfall arises.
Single-mode scenarios alongside couple mode
Single-mode scenarios can coexist with couple mode scenarios in the same account. Adding a partner profile does not affect existing single scenarios.
Assumptions and limitations
- Each partner must have their own separately entered assets. Entering combined totals into one person's asset register produces incorrect tax calculations.
- The model does not simulate one partner becoming incapacitated, only death. Health-related spending changes must be modelled manually as life events.
- DB pension survivor fractions (e.g. a 50% spouse's pension continuing after death) must be modelled as a separate income event on the surviving partner's profile — the model does not infer these automatically from a DB pension entry.
- Marriage Allowance eligibility is assessed against the modelled income each year. If the income projections change, the allowance may apply in some years and not others.