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Annuity pension Question

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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.

Comments

  • ischofie1
    ischofie1 Posts: 215 Forumite
    Seventh Anniversary 100 Posts Combo Breaker
    If your wife dies 1st your pension will stay at 100% for as long as you live.
  • jem16
    jem16 Posts: 19,581 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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
    LHW99 Posts: 5,191 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    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
    dunstonh Posts: 119,571 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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.
    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.
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