Can I transfer Pension Fund to my wife ?

Ginger_Red
Ginger_Red Posts: 66 Forumite
in Pensions, annuities & retirement planning
I suspect I know the answer to this, but it's worth a try...

I have a SIPP fund which will probably eat up my age allowance when I come to retire in 25 years time.

My short question is: is there any way I can transfer some of my pension fund into a fund in my wife's name to make use of her age allowance as well as mine ?

I've only ever had tax relief at the basic level, but I suspect the answer will be No anyway !

Comments

  • dunstonh
    dunstonh Posts: 116,252 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    My short question is: is there any way I can transfer some of my pension fund into a fund in my wife's name to make use of her age allowance as well as mine ?

    Not yet but it has been something raised as a possible thing to come in future by the Conservatives.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • bendix
    bendix Posts: 5,499 Forumite
    Ginger_Red wrote: »
    I suspect I know the answer to this, but it's worth a try...

    I have a SIPP fund which will probably eat up my age allowance when I come to retire in 25 years time.

    My short question is: is there any way I can transfer some of my pension fund into a fund in my wife's name to make use of her age allowance as well as mine ?

    I've only ever had tax relief at the basic level, but I suspect the answer will be No anyway !

    You could try dying. That would fix it.
  • Ginger_Red
    Ginger_Red Posts: 66 Forumite
    bendix wrote: »
    You could try dying. That would fix it.

    Why didn't I think of that ?

    You know how it is - the obvious answer is always staring you in the face.

    I'll bear dunstonh's option in mind as well though.
  • bendix
    bendix Posts: 5,499 Forumite
    dunstonh's answers, while essentially correct, are always far too theoretical.

    I like to think my answers are more practical. I'm more a 'this will get you the results you need NOW', kinda guy.

    But, it's your call . . . .
  • hugheskevi
    hugheskevi Posts: 3,820 Forumite
    First Anniversary Name Dropper First Post Car Insurance Carver!
    There is the less dramatic, but more drawn out process of divorce that could be considered too.

    Agree to a pensions-sharing-on-divorce, and later have a reconciliation :D

    I'm sure there are some HMRC regs preventing this in some way, and it is not as altruistic as suicide, but hey.

    On a more serious note, with 25 years to go that should be ample time for your wife to build up a fund that will use up her age allowance - even if she is a non-tax payer she can still get basic rate tax relief on gross contributions up to £3,600 p/a. Not as simple as moving everything in one go, but planned correctly over time the results are hopefully similar.
  • amc1
    amc1 Posts: 1,318 Forumite
    First Anniversary
    I have a similar question. I have a money purchase defined-contribution pension. When I retire, can I use my pension pot to buy an annuity for my wife ?
  • exil
    exil Posts: 1,194 Forumite
    You can get a joint annuity. It is expensive compared to a single life one - as it will have to pay out for longer.
  • Ginger_Red
    Ginger_Red Posts: 66 Forumite
    hugheskevi wrote: »
    On a more serious note, with 25 years to go that should be ample time for your wife to build up a fund that will use up her age allowance - even if she is a non-tax payer she can still get basic rate tax relief on gross contributions up to £3,600 p/a. Not as simple as moving everything in one go, but planned correctly over time the results are hopefully similar.

    True. Although as a nurse she will get a final-salary pension which should take her up to her age allowance if the state pension is still around then. It will still leave her well short of the point at which she starts to lose her age allowance, but while she's in that £10k-£20k bracket already, I'd rather she put her money into a S&S ISA.

    Trouble is, it's very difficult to make predictions 25 years ahead...
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