AJ Bell urges cohabiting couples to secure legal agreements for pension protection

AJ Bell has warned people in unmarried relationships that a properly drafted cohabitation agreement can safeguard pension and other assets from future legal disputes. Director of personal finance Laura Suter described the agreement as a "will for living together" that clarifies how finances, property and maintenance would be handled if the partnership ends. Although inexpensive templates are available online, she argued that professional legal input greatly reduces the risk of the agreement being questioned in court.

Family solicitor Hannah Saxe echoed the advice, noting that a clear agreement can save couples costly litigation and stress later on. The guidance comes as the UK Government reviews proposals to extend legal rights to cohabiting couples who have lived together for three years or share a child. If enacted, these changes could compel more couples to discuss and document their financial arrangements.