Will your partner have an income after your death
Recent research by Prudential has found that few people have made sure that their partner will have a pension income if they die.
More than half of couples over 40 have not made sure that a pension will be payable to their partner in the event of their death. Only 1 in 10 are planning to buy an annuity (a pension payable for life) that will continue in payment to their partner after their death.
This issue is of particular relevance to women as 1 in 5 women are planning to rely entirely on their partner for an income in retirement, compared with only 1 in 20 men.
Check what will happen when you die
If you have a private or workplace pension, check your paperwork to see what will happen to your pension pot in the event of your death. Sometimes a lump sum may be payable, or a pension, or both, depending on the type of scheme.
Have your personal circumstances changed? If you have divorced, married or had children, you should inform your pension scheme. You may also wish to fill in a new 'nomination of beneficiary' form to let the scheme know to whom they should pay the death benefits. The form is not legally binding (if it were, then any lump sum benefits would be included in your estate and would be taxable) but the scheme should take your wishes into account if it needs to decide who should get the money.
Don't forget about any old schemes that you are no longer paying into. Make sure that you advise them of any changes of address or changes in your personal circumstances.
Finally, make sure that your partner knows where to find your pension paperwork as they will need it if you die.
To read more about death benefits on our website, click here.
To read more about state pension death benefits on our website, click here.
If you have any questions about pension tracing or any other aspect of pension saving, please contact us using one of the following methods.