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    • crazygal
    • By crazygal 6th Sep 17, 1:47 PM
    • 69Posts
    • 119Thanks
    crazygal
    Stupid question alert!!
    • #1
    • 6th Sep 17, 1:47 PM
    Stupid question alert!! 6th Sep 17 at 1:47 PM
    Please be gentle but my husband asked me a question yesterday and i couldn't answer it. He got his pension forecast (hes 40 years old, employed and pays into a private pension). The value of the fund is approx £50,000 at the moment and going forward it says he will get a pension of around £3000 per annum when he retires which is obviously not a great deal. He asked me why should he bother with a pension and why doesn't he just save the money in an ISA instead until he retires. He said the pension doesn't go to me if anything happened to him either and the cash would. What reason can i give him that a pension is a good idea versus saving the cash in an ISA/bank account?

    Thanks in advance and again apologies from a pension novice!
Page 2
    • atush
    • By atush 6th Sep 17, 7:32 PM
    • 16,246 Posts
    • 9,917 Thanks
    atush
    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.
    Originally posted by LHW99
    You could also end up with nothing if he bought an annuity w/o a survivors benefit
    • Malthusian
    • By Malthusian 7th Sep 17, 9:33 AM
    • 2,887 Posts
    • 4,127 Thanks
    Malthusian
    My guess is the documents gave an estimated figure for an annuity taken at retirement with no provision for a surviving spouses pension.
    Originally posted by westv
    Statutory illustrations must assume a 50% spouse's pension. Unless the pension provider knows that the member is unmarried, and he isn't.
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