Stupid question alert!!

Options
2

Comments

  • Malthusian
    Malthusian Posts: 10,941 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Options
    crazygal wrote: »
    He has nominated me as the beneficiary but he's read it that the pension just stops if anything happens to him and I get nothing

    Where on earth did he get that idea?

    To not understand pensions is fine, to make stuff up and say you're going to make yourself poorer on the grounds of stuff you've made up is another thing.
  • crazygal_2
    crazygal_2 Posts: 72 Forumite
    Options
    He didn't make it up that was his understanding (probably incorrectly) of the documents he had infront of him. Like I said I think we will be better seeing an ifa face to face and having things explained in laymans terms to us that way our understanding can be (vastly) improved
  • steampowered
    steampowered Posts: 6,176 Forumite
    First Anniversary Name Dropper First Post
    Options
    It sounds like sending your husband to see an IFA would be money well spent.
  • LHW99
    LHW99 Posts: 4,217 Forumite
    First Anniversary Name Dropper First Post
    Options
    He has nominated me as the beneficiary but he's read it that the pension just stops if anything happens to him and I get nothing
    A remaining DC pension pot goes to his nominated beneficiary on his death, full stop. You would only get nothing if he has drawn down and spent the lot first, in which case he wouldn't be getting anything either from that point on.
  • xylophone
    xylophone Posts: 44,418 Forumite
    Name Dropper First Anniversary First Post
    Options
    Re your husband's workplace pension - see below re increasing contributions.

    http://www.thepensionsregulator.gov.uk/en/employers/phasing-increase-of-automatic-enrolment-contribution

    https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

    Which workplace pension scheme is he in?

    And the private scheme?

    He is sure that he has nominated you as his beneficiary on both?

    What are your own pension arrangements?

    Have you both obtained state pension statements?

    https://www.gov.uk/check-state-pension
  • westv
    westv Posts: 6,084 Forumite
    Name Dropper First Post First Anniversary
    Options
    crazygal wrote: »
    He didn't make it up that was his understanding (probably incorrectly) of the documents he had infront of him.

    My guess is the documents gave an estimated figure for an annuity taken at retirement with no provision for a surviving spouses pension. If that's the case ignore it.
  • sunnyjim1234
    sunnyjim1234 Posts: 41 Forumite
    Options
    westv wrote: »
    My guess is the documents gave an estimated figure for an annuity taken at retirement with no provision for a surviving spouses pension. If that's the case ignore it.

    My thoughts exactly.
    I have a small pot with the Pru. that I haven't paid into for several years. It is worth around 50k but guarantees to pay me an annual pension of a little over 4k at age 65.
    Sounded good to me, but on reading the small print this assumes that I purchase a flat rate single life annuity.
    So if I die before retiring, the fund could would pass to my nominated beneficiary, but if I was to purchase the annuity then obviously it would not. My wife is 10 yrs younger so obviously that annuity would be a non starter.
    Regards
    James
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    edited 6 September 2017 at 7:45PM
    Options
    sunnyjim1234 wrote: »
    My wife is 10 yrs younger so obviously that annuity would be a non starter.

    Not necessarily. How about taking the annuity and using part of it to pay contributions to a whole-of-life insurance policy that will pay out to your wife when you snuff it? You'd reconsider nearer the time, of course, but you can keep the idea in mind. You'd want a WOL policy that had fixed contributions.

    Or you could back up your future Pru pension by contributing now to a pension for your wife. The thing is to diversify.
    Free the dunston one next time too.
  • sunnyjim1234
    sunnyjim1234 Posts: 41 Forumite
    Options
    kidmugsy wrote: »
    Not necessarily. How about taking the annuity and using part of it to pay contributions to a whole-of-life insurance policy that will pay out too your wife when you snuff it? You'd reconsider nearer the time, of course, but you can keep the idea in mind. You'd want a WOL policy that had fixed contributions.

    Or you could back up your future Pru pension by contributing now to a pension for your wife. The thing is to diversify.

    Thank you for that suggestion, I will certainly keep it in mind.
    I am due to start drawdown in a few months time and have been thinking about drawing down an extra amount to pay £2880 into a pension for her in order to benefit from her personal allowance in the future.
    Many Thanks
    James
  • atush
    atush Posts: 18,726 Forumite
    Name Dropper First Anniversary First Post
    Options
    LHW99 wrote: »
    A remaining DC pension pot goes to his nominated beneficiary on his death, full stop. You would only get nothing if he has drawn down and spent the lot first, in which case he wouldn't be getting anything either from that point on.

    You could also end up with nothing if he bought an annuity w/o a survivors benefit
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards