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Buying a private pension to get a set income
alankearn
Posts: 128 Forumite
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
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Comments
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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 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.2 -
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.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.
Whether there would be anything to pass on to her husband if she dies first would depend on the type of annuity she bought.Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0 -
I shoud have mentioned paid for with a lump sum of 50 thousand poundsdunstonh 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.
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Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0
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