The impact of bereavement on finances remains a source of uncertainty for many over-55s, new research from Key shows.
According to the equity release adviser, one in three (31%) married or cohabiting couples have never discussed what will happen to their household income if one of them dies and 62% have never taken any legal or financial advice on estate planning. Just shy of a fifth (18%) have no financial plans if one of them dies, with nearly one in 10 (9%) over-55s fearing they will have to move house if their partner dies.
The main reason for having to move house is not being able to afford bills and upkeep with 45% of those saying they would have to move because of a lack of income, while 12% say they would not be able to afford the mortgage.
The study also highlighted a widespread lack of knowledge about their partner’s pension and what benefits they will receive when their partner dies. A quarter (25%) will receive nothing because their partner does not have a pension or they are not the named beneficiary. Just over half (54%) know they are the named beneficiary on their partner’s pension, but just 46% believe they and their partner are equally well-prepared for retirement.
Will Hale, CEO at Key, said: “Talking about death is clearly an uncomfortable subject and when you add money into the conversation it becomes even more uncomfortable. However, bereavement is sadly inevitable for all of us and being prepared financially with intentions made clear in a will can be some comfort, particularly when so many people believe they could be forced to move home as a result.
“Accessing property wealth can be a vital lifeline for remaining partners to stay in their home and support their later life aspirations.”
Hale urged people to talk about the financial impact on bereavement and seek financial advice.
