Retirement income planning for a couple?

zygurat789

nicknameless wrote: »

Wow thanks everyone for the comments and suggestions.

Looks like it would be simpler to tie the knot then! I will see how the financial implications work to persuade her of that.

Zygarut789 - interesting point. Have just checked and my nominated partner (needn't be my wife) would get 50% of my final salary pension if I die after retirement.

One thing I'm not clear on - if I built additional pension in my name with 40% tax relief, and this would be transferable 100% to my partner (soon to be wife perhaps if need be :rotfl:) should I die, why would there be an incentive to build up additional pension in her name instead? If I died she gets the benefit of 40% tax relief in accumulating this pot vs 20% in her name, and if I live the drawdown would still only be taxed at 20% (so no difference to if it had been in my future wife's name).

You mean she loses 50% of your income but still has most of the fixed costs of your life and the only expenses she loses are food, soap and a few clothes. Since her income will not be so large she may find she is a bit short - do a budget.

nicknameless

zygurat789 wrote: »

You mean she loses 50% of your income but still has most of the fixed costs of your life and the only expenses she loses are food, soap and a few clothes. Since her income will not be so large she may find she is a bit short - do a budget.

Thanks - I understand that. The last part of my question was trying to ascertain what advantage if any building up additional pension in her name with basic rate tax relief, would have over building up in my name with higher rate relief, if as suggested by jamesd that my partner (or hypothetical wife) can inherit my pension pot.

Linton

nicknameless wrote: »

Thanks - I understand that. The last part of my question was trying to ascertain what advantage if any building up additional pension in her name with basic rate tax relief, would have over building up in my name with higher rate relief, if as suggested by jamesd that my partner (or hypothetical wife) can inherit my pension pot.

If you did not get married, but parted on bad terms, your partner may not get anything from your pension. However an additional pension in her own name would give her some protection.

From a purely financial point of view the cheapest solution to protect your partner is for you to get married and the money to get 40% relief in your pension.

nicknameless

Thanks again all. Will look for a SIPP provider where I can have a cheap equivalent of our ISA investment portfolio.

Have proposed tonight on the basis of pension provision and have been told to rethink the romantic content of the situation, which I shall attempt. Nearly 24 years together and whatever 'romance' is seems to still be required - go figure. I told her destitution was a less romantic notion but that didn't do the trick. Must be losing my charm :rotfl:

gadgetmind

My proposal included the phrase, "with that proviso that all legal formalities by concluded by April 5th."

Bennifred

:rotfl: Men! :rotfl:

Linton

nicknameless wrote: »

Thanks again all. Will look for a SIPP provider where I can have a cheap equivalent of our ISA investment portfolio.

Have proposed tonight on the basis of pension provision and have been told to rethink the romantic content of the situation, which I shall attempt. Nearly 24 years together and whatever 'romance' is seems to still be required - go figure. I told her destitution was a less romantic notion but that didn't do the trick. Must be losing my charm :rotfl:

Perhaps you didnt explain the 40% tax relief aspect clearly enough. May be a few Excel spreadsheets and a powerpoint presentation would do the trick.

nicknameless

Linton wrote: »

Perhaps you didnt explain the 40% tax relief aspect clearly enough. May be a few Excel spreadsheets and a powerpoint presentation would do the trick.

That's an idea. I shall present on one knee :T

xylophone

I shall present on one knee

Add the carats and you might be accepted.:D

atush

I have to say, the if youa re that committed to each other, and have been together that ling, just get married. You don't have to tell anyone, or take each others name etc. IT could be your fun little secret.


It just means that you can have some superb tax advantages and can transfer assets between you (so that you can take advantage of her lower/no tax rate).

Why not?

Now, how do we get her to agree? You could propose getting married on some romantic tropical island? (ie a fun holiday?)

Tell her you would be lost w/o her and don't want to ever see her suffer financially?