December 21 Equalisation Deadline

xander30

With the legislation for pension equalisation changes taking place on 21 December 2012 I have to make a decision whether to take my private pension now before the deadline, or when I am 65 in 2014 and risk the probable reduction in my annuity, however if I share my annuity with my wife it seems to me that it shouldn't make any difference worrying about this deadline?
If I am correct then adding my wife for 50% share would make a difference but if I were to put her on for 100% share it shouldn't make any difference whether I took the annuity before or after the deadline. Or am I being naive?

dunstonh

however if I share my annuity with my wife it seems to me that it shouldn't make any difference worrying about this deadline?

Depends on the ratio of the share. 100% spouse would make no difference theoretically.

It should also be noted that the reduction is not going to be that great and for many providers, a 2-3 month delay would see the annuity rate recover what it lost. You have over 12 months.

For example, ignoring enhanced rates and haggling, a 65 year old male can get 5.49% annuity rate but female is 5.24%. Unisex will fall somewhere between those two. So, you are looking at about 0.1% difference in the rate. Hence why a couple of months down the road will see you getting better annuity rates due to age (ignoring market changes on rates).

Guidance issued to us was to not to recommend taking benefits early to anyone who would normally take benefits after March 2013. There is an element of crystal ball in there but the reasoning is sound.

xander30

Thank you dunstonh for your time. I had been told something similar but it's good to get a second opinion.