Bereavement is sadly a part of life but being prepared financially and legally can help to ease the process when going through such a difficult time. However, data released suggests that almost two-thirds (62%) of over-55s have never sought any financial or legal advice on estate planning.
Unsure of future plans
The report shows that many of those in the over-55 age bracket could be left in the dark when it comes to the loss of their partner or spouse.
31% of married or co-habiting couples who participated in the research have never discussed what will happen to their household income if one of them dies. Almost a fifth (18%) of couples aged 55 and over admitted to not having any financial plans in place should one of them pass away.
Confusion over assets
The report seems to suggest a lack of understanding was present when it came to knowing what would happen to assets following the death of a partner.
When it came to pensions, only just over half (54%) knew if they were the named beneficiary or not on their partner’s. However, a quarter of respondents are set to receive nothing from a partner’s pension pot, either because their partner doesn’t have one or they’re not a named beneficiary.
There also seemed to be concern over living arrangements if a partner were to pass away. Two thirds (67%) of those surveyed own their home outright with no mortgage. However, the data revealed that almost one in 10 couples (9%) believe they would have to move if their partner died. There were two main reasons for this: struggling to pay for bills and maintenance, and not being able to afford the mortgage, with 45% and 12% citing these reasons respectively.
Regional differences
The survey highlighted area differences when it came to preparedness.
Those living in the Northeast were most likely to have plans in place, as the data showed 80% of participants as having reached out for professional estate planning advice.
Those in the East of England and London were next most likely, with 70% and 71% of respondents respectively having sought financial advice.
Of the data, Duncan Edwards, Estate Planning Adviser here at Brunsdon Financial, said: “These figures reveal a definite gap in understanding around the necessity of estate planning. We appreciate planning what happens to your assets and how your loved ones are taken care of after you’re gone is a sensitive topic. We’re proud to work closely with our clients to ensure their wishes are met following their death.”
How we could help
There could be many reasons for the lack of planning amongst over-55s. Estate planning can seem overwhelming and not knowing where to start could be a contributing factor. However, we recognise the benefits of being prepared in the event of yours or your partner’s death.
Estate planning can help you have control over what happens to your assets when you pass away, as well as provide valuable security for your loved ones and peace of mind.
