Wife, civil partnership, co-habiting partner - pension

DullGreyGuy

Cobbler_tone said:
Thank you. I like the idea of a PN1. I do work for a large organisation and have a good line into the employee consultation forum and HR VP. 

It seems the only way to be sure is get married or transfer the lot out, both could be perceived as being painful 
I'm sure people get married/civil partnership for less reason! 

Yes, because the "benefit" is broader than just the pension, though how much depends on your plans. 

Dizee123

We are in a similar position where we are living together and we realise that we are going to need to take some financial advice on the implications of what happens if one of us dies.  Over the years the rise in house prices and savings has moved us into IHT territory.

In our case there is very unequal pension provision (one has a government DB pension of £32K and is retired, and the other is still working with just over £100K in a DC pension - there is a difference in ages).  One concern is that a future divorce would result in a significant decrease in living standards.  Another concern is that if the DB pensioner dies the pension dies with them.

Dilemma! 

 

Cobbler_tone

Dizee123 said:

We are in a similar position where we are living together and we realise that we are going to need to take some financial advice on the implications of what happens if one of us dies.  Over the years the rise in house prices and savings has moved us into IHT territory.

In our case there is very unequal pension provision (one has a government DB pension of £32K and is retired, and the other is still working with just over £100K in a DC pension - there is a difference in ages).  One concern is that a future divorce would result in a significant decrease in living standards.  Another concern is that if the DB pensioner dies the pension dies with them.

Dilemma! 

 

I personally wouldn't get married if I was already considering the impact of a divorce in terms of unequal pension. although I feel the shared need to protect a DB pension.

I went through that 5 year horror (the D word) and similar in terms of imbalance but I'd say there was also an imbalance in accountability and effort. It cost me everything in terms of assets and paying eveything off, plus all the legal fees for both in full (I kept my clothes) in order to keep my pension fully intact.
Now I have a long term partner who owns our property. I have a better pension than her and we obviously both want the other to be OK should the worst happen to one of us. Getting married seems the best solution, although it isn't something I ever intended doing again. The plan is retirement at 55 for her and 58 for me. I'm pragmatic enough to know I want enough independently to fend for myself if needed and pile as much as I can afford into my scheme.