Joint life 50%, 3% escalation, no guarantee - meaning please

Can someone explain the following
Joint life 50%, 3% escalation, no guarantee
Single life, 3% escalation, 5 year guarantee
Single life, level, no guarantee

Thinking single - until I die
Joint - transfers to partner
escalation - grows during my life by 3%
guarantee ??

Any help appreciated


  • rjmachin
    rjmachin Forumite Posts: 319
    Sixth Anniversary 100 Posts Name Dropper
    edited 15 August at 12:28PM
    I believe the below is correct.  If not, someone will be along to correct me:

    Joint life 50% = If you die, your partner will get 50% of your monthly annuity/pension
    Single Life = If you die, your annuity/pension will stop (after the guarantee period if one is applicable)
    3% escalation = Your annuity/pension will increase by 3% each year
    5 year guarantee = If you die, the annuity/pension will continue to be paid until the guarantee is up
  • dunstonh
    dunstonh Forumite Posts: 114,276
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Joint life 50%, 3% escalation, no guarantee
    It means the annuity drops to 50% on the named beneficiary (could be any spouse depending on options or provider selected - it is not consistent).   3% annual indexation on the payments and no guarantee period (i.e. if you die after 1 month, then the annuity will drop by 50%.  If the beneficiary dies in month 2, the annuity stops altogether)

    Single life, 3% escalation, 5 year guarantee
    Indexation same as above.  Single life means on your life only.   5 year guarantee means a minimum of 5 years income will be paid.  i.e. if you die in month 3, a further 57 income payments will be made.

    Single life, level, no guarantee
    level means no indexation.   no guarantee means it ends when you die.

    I take it you haven't got onto other annuity options yet like value protect, with or without proportion or with or without overlap?     

    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.
Meet your Ambassadors


  • All Categories
  • 338.8K Banking & Borrowing
  • 248.6K Reduce Debt & Boost Income
  • 447.6K Spending & Discounts
  • 230.7K Work, Benefits & Business
  • 600.9K Mortgages, Homes & Bills
  • 171.1K Life & Family
  • 244K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards