Annunity: preliminary take on

Blue_Parrot

There are so many helpful responses that I have clicked the thankyou button several times to thank you.

I am very glad I had out of date information off the internet, because the assumptions therefrom were upsetting me (as you could see). Thank to the responses here I have calmed down a great deal.

A response further up also made me look into my files regarding a small pension from a long-ago job. This is currently standing at just over £7000. It seems I can trivially commutate it. I presume this means I can have it as a lump sum (part taxable) and it's up to me where to put it. I'll ask the IFA when we meet.

Regarding the main topic, my partner's company pension with much larger pension pot, I can see now that I am supposed to regard Annuities as another type of Insurance, not a pension fund which is his to do with as he sees fit.

Is the age at death of one's own parents that relevant to one's own predicted longevity? This takes no account of accidents, terminal non-hereditary illness, lifestyle choices etc. My own mother died at 71, my father at 86, but my brother at 52 for instance.

atush

Blue_Parrot wrote: »

There are so many helpful responses that I have clicked the thankyou button several times to thank you.

I am very glad I had out of date information off the internet, because the assumptions therefrom were upsetting me (as you could see). Thank to the responses here I have calmed down a great deal.

A response further up also made me look into my files regarding a small pension from a long-ago job. This is currently standing at just over £7000. It seems I can trivially commutate it. I presume this means I can have it as a lump sum (part taxable) and it's up to me where to put it. I'll ask the IFA when we meet.

Regarding the main topic, my partner's company pension with much larger pension pot, I can see now that I am supposed to regard Annuities as another type of Insurance, not a pension fund which is his to do with as he sees fit.

Is the age at death of one's own parents that relevant to one's own predicted longevity? This takes no account of accidents, terminal non-hereditary illness, lifestyle choices etc. My own mother died at 71, my father at 86, but my brother at 52 for instance.

trivality commutation will deoend on how much you have elsewhere saved as a pension.

Your partner pension can be counted on if you marry/stay together but you can't get spouse's pension after death w/o that little piece of paper- get married.

The age of one's parents at death has a great impact on your own LE UNLESS they died of a preventable accident. Most terminal illesses have lifestyle and genetic factors/components although random gene mutations mean this isn't 100%. also many people who died of cancer like a parent, might be alive if the treatments available now were available back then (even a decade ago). this (increase in medical interventions.treatment) are one of the main reason's for rising LE.

Blue_Parrot

trivality commutation will deoend on how much you have elsewhere saved as a pension.

Does that include State Pension? It doesn't look like it from here.

Your partner pension can be counted on if you marry/stay together but you can't get spouse's pension after death w/o that little piece of paper- get married

We are married, I just used the word "partner" as an alternative to "other half" or "spouse".

"can be counted on"? Sorry to appear dense, but surely that is not "counted on" i.e., included in any Trivial Commutation for my own tiny previous work pension?

I am very appreciative of these responses to this thread. Thank you.

atush

Blue_Parrot wrote: »

Does that include State Pension? It doesn't look like it from here.

We are married, I just used the word "partner" as an alternative to "other half" or "spouse".

"can be counted on"? Sorry to appear dense, but surely that is not "counted on" i.e., included in any Trivial Commutation for my own tiny previous work pension?

I am very appreciative of these responses to this thread. Thank you.

No, it doesn't include the state pension.

When doing a pension review/calculation you need to take the Married couples finances as a whole and include all pensions, savings, living expenses etc. And would affect your choices re:annuity if you want a spouses pension on death of the annuitant.

Blue_Parrot

atush wrote: »

No, it doesn't include the state pension.

When doing a pension review/calculation you need to take the Married couples finances as a whole and include all pensions, savings, living expenses etc. And would affect your choices re:annuity if you want a spouses pension on death of the annuitant.

I really hope you don't mean that the IFA will attempt to conduct a review of joint finances, atush.

I've been round that attempt before. Are you an IFA btw?

atush

Gosh no. I was a sero-epidemiologist followed by a stay at home mom, then I worked part time in and out of the home and I volunteer. I do all sorts really, but I am no IFA and I don't have one either.

Are you using an IFA? you really have to take the family finances as a whole unless you are thinking your marriage won't last long as that would change everything. So I would not pay an IFA either fee or commission basis w/o revealing the state of the family as a whole.

By eonsion calculations I meant puttting both pwoples savings, pensions, investments, proerties and Living expenses into the frame. Along with any differing family health issues.

Despite living a much better and healthier lifestyle than my parents who died in their 50-60s, I think my husband will either outlast me or die around the same age as his parents lived 85-95 and he has no health risk factors like smoking, drinking etc. So we aren't going to go for a spousal pension option as we dont think he will die first (and although I hold equal property/assets he has more in pensions than I do). This is the sort of thing that helps you make decisions,along with knowing the total pension foracst for both parties incl state and private pensions plus living expenses (which are cheaper pp for 2 than for 2x1 for instance).

mania112

I find it odd that you have booked an appointment with an IFA (which presumably is costing you money) and yet you come on here to get your questions answered?

Why not wait, write the questions down and let your IFA do what he's getting paid to do?

Blue_Parrot

Hi mania112

The IFA is a woman (why presume that it is a man?)

The IFA appointment is at her request, not ours

The IFA firm never sends invoices, therefore all their income from our business is on commission.

Fourthly, I have to educate myself before asking (stupid) questions of her - or any other professional, such as bank managers, accountants, doctors, dentists etcetera. That's me.

Thanks for replying.

jem16

Blue_Parrot wrote: »

Hi mania112

The IFA is a woman (why presume that it is a man?)

I would imagine that it is simply easier to write he than he//she all the time. The majority are male so easier to pick on he.

The IFA appointment is at her request, not ours

Any reason why? Is it part of an ongoing servicing arrangement or just an "out of the blue" appointment?

The IFA firm never sends invoices, therefore all their income from our business is on commission.

Is commission the best option for you? Have you looked into fee basis?

Fourthly, I have to educate myself before asking (stupid) questions of her - or any other professional, such as bank managers, accountants, doctors, dentists etcetera. That's me.

Thanks for replying.

That's fair enough. You should always be prepared.

casey_junior

atush wrote: »

The rest has been pointed out to you- you don't have to buy an annuity when you retire if you don't want to )

What are the options for a pension pot of c£50k?