Posted on October 16th, 2010 | Categories - Pensions
More than half of over-forties yet to retire could lose their pension if their partner dies according to a survey carried out by pension provider Prudential.
The firm surveyed over 1000 adults and found that less than a fifth of participants had talked about the difference between joint or single life annuities with their other half. It also concluded that almost 40% of couples have failed to make sure that their pension income will continue to be paid out in case of the death of their partner.
About 13% of those polled said they did not know what would happen to their pension income if their partner were to die.
Head of pensions development at Prudential Vince Smith-Hughes said: “Talking about money can be difficult enough for many couples but clearly talking about death and money is a step too far for millions. But it’s time to speak up if more than half of all working couples aged 40-plus do not have arrangements in place to ensure pension income will continue after the death of one of them“.
He added: “Losing some or all of your income in retirement is a terrible risk to take and couples should think carefully about what happens in the event of one partner’s death, and seek advice where appropriate to ensure this eventuality is taken into account”.