Couples urged to discuss annuities together

Research from an insurance firm has found that couples approaching retirement need to consider how their partners would support themselves during and after bereavement.

The insurance, pensions and investments firm NFU Mutual claimed that women would be particularly affected, possibly facing nine years on the breadline.

Shelagh Hamer, pension specialist at NFU Mutual, said: “All too often, the forms are signed without considering how one might get by without the other.”

She warned that single life annuities left many women at risk of having no income from their husband’s private pension fund and that joint life annuities were more likely to provide a happier income for married women.

She said: “It’s a sad fact that many spouses, typically women, have little or no private pension provision and rely on their partner’s retirement income to get by.”

Ms Hamer said that on average, women marry earlier than men and live for longer.

Women who do not secure their own pensions, or help to ensure their partner chooses the right annuity option, could face a typical nine years of widowhood dependent on state benefits and, statistically, a meagre private pension, claimed NFU Mutual.

She said: “It’s particularly important women are aware of these pitfalls as many will have sacrificed their career and the chance to build their own pension pot to raise a family.

“Once the pension is taken, the annuity can’t be altered so it’s vital that couples take the time to make the right decision.”

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