Younger partner - effect on pension

burgesst

Hi, I am lucky enough to have a partner who is 12 years younger than me. I assume this will have an effect on any joint annuities or equivalent, as the payments would need to last correspondingly longer. How do I work out what the effect would be ?

Marcon

burgesst said:

Hi, I am lucky enough to have a partner who is 12 years younger than me. I assume this will have an effect on any joint annuities or equivalent, as the payments would need to last correspondingly longer. How do I work out what the effect would be ?

There's no 'one formula', I'm afraid - you'd need to check with the annuity provider if you are using your fund to buy an annuity. There are a number of variations (not just 'payable for life') - eg different types of guarantee/minimum payment periods.

DB schemes may or may not have a provision to pay a reduced spouse/civil partner pension where the partner is more than x years younger. Again, you'd need to check with the scheme if that applies to any of your pension provision.

Emmia

And of course, some may only pay out to a legally married spouse/civil partner...

I presume from the use of "partner" you're not married/CP

westv

You can get a ballpark annuity rate using either the HL annuity calculator or the Money Helper annuity calculator.

DullGreyGuy

burgesst said:

Hi, I am lucky enough to have a partner who is 12 years younger than me. I assume this will have an effect on any joint annuities or equivalent, as the payments would need to last correspondingly longer. How do I work out what the effect would be ?

Not sure thats "lucky" but that aside...

Are these annuities you already have or annuities you plan to buy in the future? Are they coming from a DC or DB pension? 

If you go to an annuity provider to buy an annuity and name your partner as a second life beneficiary then their age will impact the quote you get. Clearly the higher the percentage you want them to get on your death the larger the impact but this may be partially offset if you have a long guarantee period and depending on each of your sexes (a 10 year guarantee and if you are female and they're your boy toy then that would eradicate most the 12 year age gap).

If its a more traditional pension or coming from a DB scheme via a buyout then it'd have no impact on you however a "partner" who is not a spouse/civil partner may not be entitled to any second life benefits by not being in a legal marriage/civil partnership. 

burgesst

Emmia said:

And of course, some may only pay out to a legally married spouse/civil partner...

I presume from the use of "partner" you're not married/CP

Hopefully soon 😊

burgesst

westv said:

You can get a ballpark annuity rate using either the HL annuity calculator or the Money Helper annuity calculator.

Thanks, that's helpful. I was looking for calculators that can do joint life without you having to give them your phone number!

westv

burgesst said:

westv said:

You can get a ballpark annuity rate using either the HL annuity calculator or the Money Helper annuity calculator.

Thanks, that's helpful. I was looking for calculators that can do joint life without you having to give them your phone number!

Make one up.

DE_612183

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