13 October 2010
A recent investigation by Prudential has highlighted that 52% of
adults aged over 40 are at risk of losing death benefits if they
should die because they have not chosen a pension that continues to
be paid to their partner when they die.
The study shows that 39% of couples do not have arrangements set
up to ensure that a pension benefit is paid to their partner upon
the death of the member, whilst a further 13% do not know what
happens to the pension benefit should their partner die.
A single life annuity will provide a pension benefit to the
member of the policy for their life only and should they die,
payments will cease, whereas a joint life annuity will make a
provision for a husband, wife or civil partner should the member
die. The member will select the level of continuing pension when
they choose which pension option they wish to receive at
retirement.
To assist people with their pension annuity decision, we have
setup an annuity planner which can be accessed by clicking
here
Gemma Goodman from The Annuity Bureau said:
"It's vitally important that couples understand what their
annuity options are, particularly what sort of income it will pay
and whether it pays a single life or joint life income. I'd also
suggest people seek help when making a decision about what sort of
annuity to buy. We know that a lot of women have smaller pension
pots than men and so it may well be that one option for a man is to
buy a joint life annuity which continues to pay an income to his
wife or partner on his death."
"Equally, men and women should find out about enhanced annuities
which pay a higher income to people who have certain health issues.
All of this underlines the importance of shopping around for the
most suitable annuity for individuals and couples, rather than
simply choosing the highest rate on offer."
To read the full Prudential press release click here
If you wish to speak to one of our advisors about the different
options available at retirement, they can be contacted by calling
our helpline 0845 601 2923.
