Your financial checklist (for a CWOK couple)
Here’s a tailored checklist for couples without kids to turn your “two incomes” into a genuine advantage:
Short-term (next 12 months)
- Set up a joint budget (or shared budget) for household expenses + discretionary.
- Build an emergency fund: aim for 3-6 months of combined income accessible.
- Review your insurance cover: life, income protection, serious illness, even without children.
- Agree on the “extra income” channel: how much goes to savings/investment vs lifestyle.
Medium-term (1 – 5 years)
- Maximise pension or retirement savings: your two incomes give you flexibility to put more now.
- Tax-optimise wherever possible (especially relevant in Ireland).
- Consider property goals or investment plans: if you’re thinking of buying, saving a deposit early matters.
- Avoid lifestyle inflation eating all your gains.
Long-term (5 + years)
- Keep revisiting your goal: will you have kids? Maybe later? Don’t assume “no kids forever” or “one day we’ll have kids”. Plan for both.
- Review your asset allocation, investment strategy and make sure you’re on track for retirement funding.
- Estate & succession planning: you’re a team, you need plans for old age, inheritance, healthcare, etc.
Protection Matters Even When You’re a Couple Without Kids
A lot of couples without kids think, “Ah, we don’t need life insurance yet, we don’t have kids.” But here’s the truth: your income still matters, even without children. You and your partner likely rely on each other to cover the mortgage or rent, shared bills, car loans, holidays, and everything that makes your life run smoothly.
If one income suddenly disappears due to illness or an unexpected loss, the financial strain can hit just as hard, sometimes even harder, because you may not have the safety nets that families are pushed to build.
Protection isn’t just about children; it’s about safeguarding the lifestyle and stability you’ve built together.
The three must-have protection policies:
Income Protection
Your income is your biggest asset. If illness or injury stops you from working, income protection replaces part of your salary. Without kids, you may have lower expenses, but you still need money to pay:
- Rent or mortgage
- Loans
- Car payments
- Utilities
- Day-to-day living costs
Losing one income in a two-income household often causes more financial shock than you’d think.
Serious Illness Cover
If one of you is diagnosed with a serious illness (cancer, stroke, heart disease), a lump-sum payout helps cover:
- Medical costs
- Income gaps
- Time off work
- Home adaptations
- Treatment abroad
Without kids, couples often rely heavily on each other. A serious illness can hit hard.
Life Insurance
Even without dependents, life cover can:
- Clear a mortgage
- Help your partner stay financially stable
- Pay off shared debts
- Prevent your partner from inheriting tax problems (more on this below)
Many couples only realise this when it’s too late. Protection has nothing to do with having children; it’s about looking out for each other and safeguarding the long-term plans you’re building together. Whether it’s your home, your shared lifestyle, or your future goals, the right cover ensures that one unexpected event doesn’t unravel everything you’ve worked for.
The Big Tax Trap for Unmarried Couples
This is a big one, and most child-free couples in Ireland have no idea. If you and your partner are not married or in a civil partnership, the law treats you as strangers for inheritance tax purposes. That means if one of you passes away, the surviving partner gets almost no tax-free allowance and can face a significant tax bill on property, savings, or even a life insurance payout.
That means:
- You only get a €20,000 inheritance tax threshold (as of 2025)
- Everything above that is taxed at 33%
For example, if your partner leaves you €300,000 in assets, you still only get a €20,000 tax-free threshold. The remaining €280,000 is taxed at 33%, meaning a tax bill of €92,400.
That’s almost one hundred thousand euros you’d have to come up with. And if the inheritance is mostly tied up in your home, you may be forced to sell the property just to pay the tax bill.
This applies to:
- Property
- Savings
- Investments
- Life insurance payouts
How to avoid inheritance tax on life insurance payout
Cohabitant couples can avoid this trap, but only if the policy is set up correctly.
The solution: Life Insurance on a “Life of Another” basis
This means:
- Each of you takes out a policy on the other person’s life
- Each person pays the premium for the policy they own
– Result: The payout does not count as inheritance
– Tax bill: €0
This can save a partner from a devastating tax bill during an already heartbreaking time. Most cohabiting couples do NOT know this, but it is crucial.
If you want to know more, check out these detailed guides:
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