Annuity pension Question

markbe

Good morning all,


I am about to take my annuity pension which gives my wife 50% when I die.


However my wife asked last night, if she dies first, does my pension revert to me only,
ie, increases back up to what it would have been without her on at 50%.


Mb.

ischofie1

If your wife dies 1st your pension will stay at 100% for as long as you live.

jem16

markbe wrote: »

However my wife asked last night, if she dies first, does my pension revert to me only,
ie, increases back up to what it would have been without her on at 50%.


Mb.

No it does not change. Once the annuity is purchased that is it.

LHW99

My understanding is that once the annuity is purchased, its more like an insurance policy - it continues to pay out for the circumstances selected at the beginning, so if you wife dies first, you continue to get the same amount, no more.
You're effectively "insuring" against the possibility of you dying first - if that doesn't happen, its not the annuity provider's problem.

dunstonh

One assumes you are using an IFA to get the annuity (as IFAs get the best rates unless it is a guaranteed annuity rate). Ask the IFA to quote 100% spouse as well as 50% spouse as since G Day (the day gender was no longer allowed to be considered) the price difference between 50% and 100% became a lot smaller. There are also a number of revised annuity options since the pension freedoms came in. Most are only available on the open market option. Not when you buy direct from existing provider.