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Annuity
Comments
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If your wife has no earned income you could still contribute £2880 per annum to a pension for her and the provider would reclaim tax relief of £720.0
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Could you buy your wife some extra state pension by buying some NICs?Free the dunston one next time too.0
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Not an uncommon situation but all the spousal option does is have the pension pay out after your death until theirs. Probably much more cost effective to take out life assurance instead and pay for that from the higher annuity income.
The £720 a year from making pension contributions then taking the money out a few weeks later is a great deal that your wife should be exploiting. You may be able to as well. It's worth less than £720 if personal allowance is not available but it's still a gain.0 -
May I add this pension is with Aviva.
Does this change anybody's opinion?
Also if you use their Annuity calculator and it states the reduction will only be 17.5% not 31%!!
Have to say, not very happy.
Mb.0 -
A GAR is a great asset and is something to be happy about. Compare what you have been offered with current annuity rates and be grateful.
It's what you bought so why should you expect something more?
The annuity calculator is based on current annuity rates so isn't a fair comparison of the cost of adding a spouse.0 -
Also if you use their Annuity calculator and it states the reduction will only be 17.5% not 31%!!
That is because new business is based on open market option rates and has to be gender neutral. Guaranteed annuity rates are not open market rates but were rates put in place when the policy was written. They also can still factor in gender differences because it was written before they couldnt.
provider is irrelevant.May I add this pension is with Aviva.
Does this change anybody's opinion?
You have no grounds to be unhappy. You have a guaranteed annuity rate that is above market rates. They are honouring the terms you both agreed at the point of sale. Everything seems to be exactly as it should be.Have to say, not very happy.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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