Many people in long-term relationships could face debt troubles during retirement by failing to prepare for all eventualities after their working live…
Many people in long-term relationships could face debt troubles during retirement by failing to prepare for all eventualities after their working lives come to an end, new research has indicated.
The study, carried out by Prudential, found 52 per cent of UK adults aged over 40 and who are not yet retired risk losing all or part of their private pension income if one partner dies.
This is because the couples have not made any pension provisions for the other.
It was discovered 39 per cent of those with a spouse or partner do not have any arrangements in place that will ensure pension income carries on being paid after their lover passes away.
Moreover, a further 13 per cent admitted they do not know what will happen to this money and other investments should they lose their partner.
The investigation revealed less than half of those surveyed (48 per cent) have taken the time to arrange for their pension income to continue being received.
And it appears men are the more likely to take these steps, as 56 per cent of males have prepared for this possibility, compared with 43 per cent of women.
Furthermore, it was found just 31 per cent of non-retired UK adults over the age of 40 have talked to their spouse about what happens to assets in the event of death, while only four per cent have discussed the difference between joint life and single life annuities.
A recent study by LV= found 40 per cent of over-50s who are still in employment would have to lessen their pension contributions to cover debts if interest rates were hiked.
By James Francis