Half of couples risk leaving partner with no retirement income

More than half of couples (53 per cent) over the age of 40 have no plans in place to ensure that when one partner dies, their pension will continue to pay an income to the surviving partner, research from Prudential has found.

The research also found that:

21 per cent of women over 40 are expecting to rely solely on their partner’s income in retirement
41 per cent of couples have never discussed how they will turn their pension savings into a retirement income
13 per cent of couples over the age of 40 will have one partner reliant on the other partner’s pension
only 10 per cent plan to purchase a ‘joint life’ annuity – where a spouse or partner continues to receive a regular retirement income after the annuitant dies.

The findings reveal a sense of confusion amongst couples about the sources of income available in their retirement. One in seven (14 per cent) did not know what their main source of income would be once they’ve retired.

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.”

“Our research shows that even those couples who have discussed their retirement finances have still made decisions that could leave one of them without an income if they outlived their partner.”