Buying a private pension to get a set income

alankearn

Would a 86 year old woman be able to buy a private pension to produce a set income for herself  then be past on to her  90 year old husband if she dies first

dunstonh

No.  The final age to contribute to a pension is 74 (caveat applies regarding rare quirks).

However, they could buy an annuity (not linked to a pension). They are called "purchased life annuity".  Not a mainstream product nowadays but any local IFA would be able to discuss and arrange them.

Marcon

dunstonh said:

No.  The final age to contribute to a pension is 74 (caveat applies regarding rare quirks).

However, they could buy an annuity (not linked to a pension). They are called "purchased life annuity".  Not a mainstream product nowadays but any local IFA would be able to discuss and arrange them.

Part of the income from a purchased life annuity (as opposed to an annuity bought with pension savings) is treated as a return of capital, so there is favourable tax treatment.

Whether there would be anything to pass on to her husband if she dies first would depend on the type of annuity she bought.

alankearn

dunstonh said:

No.  The final age to contribute to a pension is 74 (caveat applies regarding rare quirks).

However, they could buy an annuity (not linked to a pension). They are called "purchased life annuity".  Not a mainstream product nowadays but any local IFA would be able to discuss and arrange them.

I shoud have mentioned paid for with a lump sum of  50 thousand pounds

Marcon

See https://www.canadalife.co.uk/retirement/purchased-life-annuity/