Joint Life or individual private pensions.

lolly5648

My husband and I can both get our private pensions next year. Someone said that we should get joint life because that way the pension isnt lost if one of us dies. I know it will be at a slightly lower rate but we need the money. (I know about income drawdown and lump sums etc but we want to buy an annuity)

I wondered if anyone else had gone for joint life and if there are any disadvantages

monkeyspanner

I think annuity rates for joint life will be substantially lower than single life. You might be better off looking at life insurance on each life the proceeds of which could then be used to buy an additional annuity. Obviously the life insurance cost will become more expensive as you both age but you could lower the sum assured as the annuity rates will improve as you age.

It is also worth shopping round for the best annuity rates.