Pensions: have you talked to your partner about retirement?

theguardian.com:

As part of a couple you may be used to arranging everyday finances jointly, but when it comes to long-term planning, do you know where you stand?

Pension planning tends to be something we do as individuals, but when one partner dies, it could have a big impact on the other’s finances. Cohabiting couples, in particular, can face a raw deal on private pension inheritance rights. Even if you’re married, or in a civil partnership, a partner may receive less than expected.

There are no longer rates specifically for married couples – the full state pension is £179.60 a week and the exact amount is based on your national insurance contribution record.

However, you may be entitled to extra payments if your spouse or civil partner dies. There were changes to the rules in April 2016 and the amount depends on whether you, and/or your partner, reached state pension age before or after that date.

Steve Webb, a former pensions minister and partner at the consultants LCP, says: “The most generous arrangements apply where the spouse who died came under the old system, as the new state pension has very limited scope for inheriting.”

If you reached state pension age before 6 April 2016 you fall under the old pension system. Its rules state that a surviving spouse can inherit at least 50% of your “additional” state pension, also known as state second pension. If your partner also retired under the old system, he or she can use your national insurance record to boost their basic state pension after your death.

If you’re under the new system, and getting more than the flat rate pension, then 50% of this extra money – the “protected payment” – can be inherited by a spouse or civil partner. If you’re cohabiting, you cannot claim any of a partner’s