Pension arrangement in UK
Let your partner know of your pension arrangement.
07:53 02 January 2014
If one is to live comfortably in their retirement, it is important to prepare for everything and anything. There comes a time when you have to prepare for the inevitable loss of your partner. So how do you make sure that they are taken care of in the event of your demise?
Most women over 40 depend solely on their partner’s income in retirement. Studies have shown that only 5 per cent of men depend on their partner’s UK pension. Many Britons do not know where pensions/retirement incomes go when their partner passes away. You heard it right; the impact of pension arrangement on partner’s death is still not widely discussed.
Numbers do not lie and if the figures of Britons, who are clueless about what to do about their partner’s pension in the event of their demise, are anything to go by then it is an uphill battle.
The fights to secure the retirement income can be very harrowing and daunting at best. UK pensions are in danger from being unclaimed and it is very easy to notice why. Rarely will couples sit down and talk about what will happen next if the one of them should happen to pass.
The lack of communication between spouses regarding the distribution of UK pensions is contributing greatly to the pension black hole experienced in the nation.
The very first step in ensuring that the UK pension matter is handled at the household level is to encourage communication between spouses and partners.
But that is only half the battle as one has to make the right decisions in order to safeguard their UK pension. Most people often find it tricky to change the pensions into income. There are a variety of options to change it and it is at your discretion to select the one that suits you best. One option that most pensioners find appealing is the joint life annuity, which ensures the payments continue to flow to your spouse even when you kick the bucket.
If you are going to make a decision regarding how your UK pension should be handled, it is important that you seek advice from an expert first.