New analysis from the Royal London shows that if you are cohabiting with your partner rather than in a civil partnership or marriage, you are missing out on various tax breaks.
The analysis shows that more over 65s are cohabiting than ever before, with the amount of people living together without tying the knot trebling over the last 13 years.
Helen Morrissey of the Royal London, said: “With each passing year more and more people are choosing to live together as couples, and it is amongst those over pension age where the growth has been the most dramatic.
“But individuals need to be aware that there are many tax breaks and state pension advantages which apply only to married couples.”
Inheritance Tax Breaks and Pension Benefits you’re not getting
If you are married or in a civil partnership, you can pass on your wealth to your surviving spouse free of inheritance and can transfer any portion of unused inheritance tax threshold to your spouse.
You can also pass on your family home up to a £1m without IHT penalty if you are married.
Also, windows or widowers have rights to inherit their spouse’s pension. For example, the surviving partner could see their pension boosted by £2,500 per year, which is a significant sum.
None of this applies to you if you are cohabiting.
Surprisingly, the Royal London has concluded that it is the over 65s that are most affected as they tend not to remarry once widowed or divorced. It is amazing what a good financial adviser can discover.
Get Financial Advice now
Although you should always marry for love, if you are over 65 there is some merit of marrying for tax and pension benefits. This can be a significant sum and save all kinds of headaches and problems that cohabiting couples face.
To get an idea of how much you could benefit from marrying, click here and complete the Call Back Service form. You and your partner could be missing out on potentially hundreds of thousands of pounds.
Source: Daily Mail