How should couples plan for retirement and the surviving partner?
Plan for the couple and for either survivor. A combined asset total does not establish which income continues, who can access money or how long support is needed.
Prepare three budgets: both partners alive and each partner surviving alone. Calculate net income and identify funding for each shortfall.
Work out what each partner needs
Shared costs rarely halve after a death. Rates, levies, security and maintenance may change little; medical cover and paid help can cost more per person. The survivor may also move closer to family or into care.
Ask each partner which costs they would keep, change or stop. An affordable budget must reflect the survivor’s own preferences.
If partners retire at different times, model the transition from salary and pension to retirement capital, including employer benefits that end.
Follow every income after a death
Record each pension’s payment, escalation and death benefits. Single-life and joint-life annuities can produce different survivor incomes; a guarantee period and a spouse’s pension serve different purposes. Joint-life cover may buy less starting income for the same premium, increasing the capital needed to meet the couple’s budget, while reducing the survivor’s separate funding gap.
For a living annuity, consider who is nominated, the benefit options available and the income the remaining capital could support. An investment balance does not establish a sustainable monthly income by itself. ClearGauge’s comparison of living and guaranteed annuities explains the underlying trade-offs.
Keep these contractual benefits separate from assets passing through an estate. Estate administration and benefit claims can create a delay between a death and the survivor receiving usable money. The Master’s guidance on deceased estates describes the administration process; the timing in an individual estate depends on its circumstances.
Recalculate the survivor’s tax
Income that shifts into one person’s hands can produce a different tax bill even when the gross household payment changes little. The deceased’s personal rebates do not pass to the survivor. Recalculate the survivor’s own age-related rebates, taxable pension income and investment income using the current SARS individual tax tables.
Medical credits also change with the people covered and who pays. In 2026/27 the basic scheme credit for two qualifying beneficiaries is R752 a month; for one it is R376. A survivor retaining cover only for themselves would therefore have R376 less monthly credit, alongside the change in contribution. Additional medical credits require their own calculation. SARS explains the basic credits. Use the resulting net income in the survivor budget.
Check who receives a retirement fund death benefit
For benefits governed by section 37C of the Pension Funds Act, trustees must investigate dependants and nominees and allocate the benefit equitably. A nomination guides them but does not bind them to the nominated percentages. The Pension Funds Adjudicator discusses death-benefit investigations.
Update nominations and tell the fund about people who depend on you. Identify which expected payments depend on a trustee allocation and which arise from an annuity contract; they need different assumptions about beneficiaries and timing.
Test an uneven survivor outcome
Illustrative figures only: Ayesha and Daniel spend R38,000 a month and receive R42,000 after tax. Assume their pension arrangements pay different amounts to the surviving spouse:
| Household situation | Monthly income after tax | Monthly spending | Surplus or shortfall |
|---|---|---|---|
| Both partners alive | R42,000 | R38,000 | R4,000 surplus |
| Ayesha is the survivor | R34,000 | R32,000 | R2,000 surplus |
| Daniel is the survivor | R26,000 | R32,000 | R6,000 shortfall |
Daniel’s R6,000 monthly gap requires R72,000 a year from another source, allowing for inflation and a long retirement. Also test higher medical costs per person; the lower-income survivor may need more than the R32,000 spending shown.
They could compare stronger spouse benefits, a different annuity allocation, a lower future housing cost or additional capital reserved for Daniel. Each option has a cost. A larger spouse pension, for example, may reduce the initial joint income. Compare actual quotations before deciding.
Make access and understanding part of the plan
Both partners should be able to explain where their income comes from and how to contact the relevant providers. Record ownership, beneficiary nominations, regular payments and the location of original documents. Check how these interact with the wills and the marriage arrangements.
Discuss accessible money for the period immediately after a death. Determine the amount from essential bills and likely payment delays, and confirm with the bank and legal adviser how the proposed arrangement would work. An account login or knowledge of a password does not establish legal authority.
Confirm the legal and provider arrangements
Use the pension quotations and Master’s estate guidance to prepare questions about payment timing. Ask the administrator to confirm contractual death benefits and an attorney or fiduciary specialist to check wills, ownership and estate access. The household budget can expose a gap; it cannot determine a disputed beneficiary’s legal entitlement.
Your next step
Obtain pension quotations and test both survivor budgets after tax, higher medical costs and payment delays; if the numbers still work, proceed with the reviewed income plan; if not, adjust while you still can.