Recent research by Prudential indicates that many retirees are not making provision in their annuity for their partner. Many annuity contracts default to single life and especially those that have guaranteed annuity rates.
More than half of adults aged 40-plus and who are not yet retired are at risk of losing all or part of their private pension income if one partner dies because they are failing to make any pension provision for each other, research from Prudential shows.
Prudential has launched an online guide for couples at www.pru.co.uk/couplesconversations which provides a decade by decade countdown on the financial issues they may need to tackle.
Vince Smith-Hughes from Prudential said, “You can choose a joint life annuity which will pay an income to a spouse or dependent after your death and alternatively or as well as you can purchase a guarantee that the income will continue for a set period up to 10 years after the death of an annuitant.
We asked independent financial adviser (IFA) Adam benson to comment on the research by Prudential, Adam said, “When dealing with married couples as an IFA I always recommend that couples protect each other financially where they can. Quite often people go for the larger income on single annuities, which is often the default option, forgetting about their partner. This is why it is important to get independent financial advice, an adviser will always make a recomendation to protect the partner in the event of death, and of course we never know which will die first”.
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