Prudential Reports Pensions Death Risk for Unprepared CouplesBy Prudential, PRNE
Thursday, October 28, 2010
LONDON, October 29, 2010 - Prudential has conducted new research* that reveals more than half of UK
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.
The study reveals 39 per cent of couples do not have arrangements in
place to ensure that pension income continues to be paid after the death of
one partner, and another 13 per cent do not know what will happen to their
retirement income (www.pru.co.uk/) and other investments if their
Only 48 per cent have made arrangements to ensure that pension income
will continue to be paid and it is men who are more likely than women to have
made sure that happens. The study found 56 per cent of men have put
arrangements in place compared with 43 per cent of women.
Prudential has launched an online guide for couples at
pru.co.uk/couplesconversations which provides a decade by decade countdown on
the financial issues they may need to tackle.
Vince Smith-Hughes, head of pensions (
www.pru.co.uk/pensions_annuities/prudential_pensions/) development at
Prudential, said: "Talking about money can be difficult enough for many
couples but clearly talking about death and money is a step too far for
"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.
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."
Vince Smith-Hughes added: "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.
"For those still not yet retired it is also worth ensuring that whoever
administers your pension scheme has written instructions to ensure the wishes
of the member for disbursement of the pension fund upon death are known."
But Prudential's research shows just 31 per cent of non-retired UK adults
aged 40-plus have discussed with their partners what happens to pensions and
other assets in the event of one of them dying.
And only 4 per cent have talked with their partners about the difference
between joint life and single life annuities - which stop paying when the
purchaser dies - and joint life annuities which continue to pay after the
death of one partner.
Prudential's online guide covers topics such as making a will, discussing
pensions and how much to save, talking about when to retire, working out
retirement income, reviewing total savings, researching annuity options and
when to buy, checking National Insurance contributions, talking about housing
options, leaving an inheritance, and agreeing on long term care.
Notes to Editors
*Survey conducted by Research Plus between 6-14 July 2010 among 1,172 UK
adults aged 40+ currently living with their spouse or partner. The research
used an online methodology.
"Prudential" is a trading name of The Prudential Assurance Company
Limited, which is registered in England and Wales. This name is also used by
other companies within the Prudential Group, which between them provide a
range of financial products including annuities, life assurance, investment
bonds (www.pru.co.uk/investments/bonds/), pensions, a tax calculator
and pension guide for those planning to retire (
www.pru.co.uk/pensions_annuities/). Registered Office at Laurence
Pountney Hill, London EC4R 0HH. Registered number 15454. Authorised and
regulated by the Financial Services Authority.
PR Contact: Jonathan Akerman PR Manager Prudential 3 Sheldon Square London W2 6PR +44(0)20-7150-3177 www.pru.co.uk
PR Contact: Jonathan Akerman, PR Manager, Prudential, 3 Sheldon Square, London, W2 6PR, +44(0)20-7150-3177
Tags: London, October 29, Prudential, United Kingdom