Three in four adults don’t know what their spouse’s pension is worth: New survey reveals that almost half of married couples haven’t spoken about their retirement plans
- According to insurer LV=, 60 percent won’t plan retirement finances with spouse
- Those with assets between £100,000 and £500,000 more likely aware of value
- Many people, 78 per cent not aware of benefits of planning retirement together
More than three quarters – 78 per cent – of married people have no idea what their spouse’s pensions are worth, research reveals.
Nearly half (47 per cent) of working husbands and wives haven’t even spoken to their other half about their retirement plans, insurer LV= found.
And 85 per cent are not aware of the tax efficiencies of planning retirement together, the pensions and retirement specialist said.
More than three quarters – 78 per cent – of married people have no idea what their spouse’s pensions are worth, research reveals (stock image)
Those with assets between £100,000 and £500,000 excluding property were more likely to be aware of the value of their spouse’s pension.
But the majority (60 per cent) did not intend to plan their retirement finances with their spouse and 78 per cent were not aware of the benefits of planning retirement together.
The findings are based on a survey of over 4,000 people across the UK.
Clive Bolton, managing director of savings and retirement at LV= said: ‘LV=’s research indicates that millions of married people are not talking to their partners about their pensions and retirement plans.
‘That’s a mistake because couples who jointly plan their retirement can be much better off when they stop working.
‘Most people have a good idea of what their house is worth, and the same attitude should apply to their retirement funds.
Those with assets between £100,000 and £500,000 excluding property were more likely to be aware of the value of their spouse’s pension (stock image)
‘After a lifetime of saving, the value of a retirement fund can be worth as much as a property, so it’s important that people know how much their retirement savings are worth and the potential death benefits they offer.’
In its tips for married couples, LV= says a higher earning spouse could pay additional funds into their partner’s pension, so that the contributions attract tax relief.
It also recommends avoiding unnecessary large withdrawals from a pension fund as drawing too much too quickly can lead to large tax bills.
And it says it is important that each partner knows who to contact about the other’s pensions in the event of their death.
Pensions also have death and inheritance tax benefits. They do not normally form part of the estate for inheritance tax purposes and on death before the age of 75 they can usually be paid out tax-free.