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Your Long-Term Financial Stability

With the uncertainties surrounding the economy, it’s an ideal time to be thinking about financial stability. So, if we want to provide those we love with security, it’s best to think long-term.

The pandemic and the current increase in the costs of living show all too clearly that good health, and even life itself cannot be taken for granted.

When both partners’ income and assets are vital for the household’s financial security, it will inevitably mean financial difficulty for the survivor should either of them pass away. 

With the right financial planning you can minimise the problems for your loved ones; here are a few reminders of the essentials:

Write your will

Without a will, your assets will be distributed according to intestacy rules. This would mean if you have surviving children, grandchildren, or great-grandchildren, your partner will inherit your personal property and only the first £270,000 and then half of the remainder of your estate.  This could mean them losing their home.

Writing your will should therefore be a priority, especially if you’re not married or in a civil partnership.  Common-law partners have no automatic legal right to inherit anything at all. 

Getting help on the financial side of will writing could mean avoiding tax problems for all concerned.

Look at your pension

Your pension may be one of the largest assets you own. Many people are surprised that it is not covered by their will. 

Instead, you will need to make your wishes are clear to your pension provider to let your partner access the money within your pension. 

You should also think about how you will take your pension. You could take an annuity; in return for your pension pot, an annuity can provide a guaranteed income for the rest of your life. A joint annuity is designed for couples and will provide an income so long as either partner lives – but the income provided will be lower.

A drawdown arrangement might offer a more rewarding alternative and provide greater flexibility to allow a surviving partner to make the financial arrangements they need.

It is a good idea to seek independent advice to ensure your pension can go on providing for your loved ones.

Folkes Worton are here to help on 01384 376964
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