Only a third of mid-retirees know details of their partner’s pension

Research by Aviva and Age UK has found that mid-retirees are navigating retirement without the financial support or guidance they may need as they get older.

The report showed that almost two thirds (64%) of mid-retirees admit they have not spoken with family or friends about managing their financial affairs, should they become unable to do so independently, with 81% saying they don’t have a lasting power of attorney in place.

Nearly four in ten (39%) have not yet considered how they will manage their finances as they grow older, particularly into their 80s or 90s. Whereas only a little over a third (36%) know all the details of their partner’s pension and more than four in five (84%) in a couple have not checked to see if their partner has nominated them as a beneficiary for their pension.

Emma Douglas, Wealth Policy Director at Aviva, said “Our findings suggest that mid-retirees might be in danger of drifting into later-life retirement without a clear financial plan, which could leave them vulnerable, especially in the event of cognitive decline or the loss of a partner.

“While there is no one-size-fits-all solution, taking the time to understand your household’s retirement income and what would happen if you or your partner’s circumstances change, is crucial to better financial planning. Openly discussing your plans and wishes with family helps to ensure everyone feels informed and reassured that everything is in place.”

Caroline Abrahams, Charity Director at Age UK, said “Having a broad understanding of your household finances, including pensions, can make a huge difference to couples as they age.  Being able to plan ahead can improve people’s ability to take sensible spending decisions while helping prepare for the worst – for example the extra costs of ill-health and even bereavement.

“Dealing with the ‘sadmin’ following a bereavement can be extremely distressing, however this difficulty can be reduced if both partners are aware of their spouse’s finances. In particular, many women can find themselves significantly worse off once their husband dies, especially as household incomes often fall significantly, so hopefully an open discussion about money and pensions can be hugely beneficial.

“We would encourage everyone to plan ahead, including looking at taking out a lasting power of attorney and budgeting for some of the costs that can arise in later life.”