New research has highlighted the risks couples are taking when they fail to make sufficient financial plans for the future.
According to the study, which was carried out by Prudential, only 46% of couples over the age of 40 have arrangements in place to ensure that when one partner dies, the other will continue to receive a retirement income.
Unsurprisingly, it is women over the age of 40 who are expected to be most at risk, with 21% saying they will be dependent on their partner for a retirement income, compared to just 5% of men who say the same.
The Prudential study found that 53% of couples aged over 40 have made no arrangements to ensure that when one partner dies, their pension will continue to pay an income to the surviving partner. More than a quarter (28%) of couples have yet to discuss the impact on pension arrangements of one partner’s death, while 19% have at least made a will but no other financial plans.
Vince Smith-Hughes, retirement expert at Prudential, said: “For couples looking to enjoy a comfortable retirement, organising and agreeing their income options should be a priority – long-term financial planning can be even more important than managing day-to-day-finances.
“Having open and frequent conversations as a couple about your retirement planning is definitely an important first step. However, making the right decisions on the best retirement income options – including what happens when one partner dies – can be daunting. That’s why seeking advice from a retirement specialist or financial adviser is just as important.”
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Contact our family law solicitors based in Edinburgh, Scotland, to find out how we can help you make financial plans for retirement – click here to contact us or telephone 0131 202 7516.
