Three pension conversations worth having with your loved ones

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Talk of the cost-of-living crisis and high inflation rates may have died down recently, but the impact they had on people’s finances is still a reality for many. Things are more expensive now than they were a few years ago, and that might mean you’ll find it harder to get by. But when times are tough, it can be more important than ever to talk about money. 

It can feel uncomfortable, but research shows that people who talk about money make better and less risky financial decisions, have stronger personal relationships and feel less stressed or anxious and more in control. 

With your pension, there’s lots to talk about

When having conversations about money, your pension shouldn’t be forgotten about. In fact, your pension could end up being one of the biggest financial assets you own when you reach retirement, so it should be a big part of the discussion.

Despite this, half of those aged 55 and over haven’t talked about the sort of lifestyle they want in retirement with a partner or loved one, and another 53% haven’t had a conversation about whether they’re on track to afford it when they retire.

Conversations about your pension are important to have at any age. So, to help get you started, here are three pension conversations we think are worth having with your loved ones.

1. How much to save for the retirement you want

It’s important to have conversations about your retirement goals and timelines, especially with your partner. Saving and planning for retirement as a couple can have a lot of benefits and can look quite different to doing it as a single person.

It’s a good idea to talk about whether you plan to retire at the same time, and what you’d like your lifestyle to look like. This will tell you where the similarities and differences are in your hopes and expectations around things like day-to-day spending, travel and hobbies. In turn, that will help you both understand how much you need to save and if you’re on track for the future you’re hoping for.

The Retirement Living Standards can help you get a picture of how much you might need in retirement based on your expectations. Then use our pension calculator to work out if you’re on track.

2. Tracking down any old pensions

You, your partner and your loved ones could have built up a number of pension plans from the jobs you’ve had in your lifetime. There are more than 2.8 million pension plans considered ‘lost’ in the UK, showing it’s easier than you think to lose track of your old pension plans.

It’s important to keep track of all your pensions and how much you’ve saved so far. So opening up a conversation about your past jobs and the pensions you had with previous employers can encourage you to track them down. 

Need help finding a lost pension? We’ve partnered with Raindrop to make it easy to find your lost pension plans for free. All you need to do is tell us a few things about your old plans – like when they were set up and who you were working for at the time – then you can leave the hard work to us. Your pension assistant will track down your pensions for you and we’ll keep you up to date along the way.

Find your pensions for free

3. Passing on your pension

No matter your age, it’s good to talk openly with your loved ones about who you want your pension savings to go to when you die. 

Your pension savings don’t currently fall into the value of your ‘estate’, which means you can’t usually specify in your will who you want to pass them to when you die. Although, the government recently announced that this is set to change in April 2027, meaning your pension plan could form part of your estate in the future.

Instead, you can nominate beneficiaries on your pension plan, and your pension provider will take them into account when they decide who to pass your pension savings to. 

However, often people will nominate their pension beneficiaries at one point in time but won’t update them as things change. And, when you die, if there’s any uncertainty about who you would want your pension savings should go to, your pension provider can reach out to your friends and family to ask for their opinions. So the more first-hand information they have from you, the better.

We’ve answered some commonly asked questions about passing on pensions and nominating beneficiaries in What happens to my pension savings when I die? Your questions: answered if you want to know more.

The information here is based on our understanding in November 2024 and should not be taken as financial advice.

A pension is an investment. Its value can go down as well as up and you may get back less than was paid in.

Standard Life accepts no responsibility for information on external websites. These are provided for general information.