Do we go for Joint Life????

stagey_2

Have decided to take hubbies pensions plans this year he is 63 - have read up lots of info about buying from another provider other than Pru - if we go for a joint life I have to consider how I might be denying myself any government benefits in the future. I paid the married women's stamp until 1994 when I remarried and my govn pension is £64 per week. If I was on my own with the joint pension at some time in the future my total income would be in the region of £8800 with out it it would be about £4330 - not a lot I know! I appreciate any savings would determine if I was entitled to benefits also. So what to do - joint life or single life guaranteed for 10 years (probably) - I'm still working so is he but we wish to use some of the cash lump sum to pay off the mortgage in August and save what we would have been paying (I think! still considering options). By the way what happens after the 10 years guarantee income - do they recalculate? Also the Retirement Annuities are in 3 different pots - but I've added them together for checking out different rates totals £95113 - I was astonished as 2 of them have been paid up for about 17 years! anyway hopefully someone can assist me in making up my mind as I know once done - that's it! many thanks

EdInvestor

stagey wrote: »

Have decided to take hubbies pensions plans this year he is 63

If these are Retirement Annuity Contracts, have you checked whether they have Guaranteed Annuity Rates attached? These could be much higher than normal annuity rates.They could have restrictions though - such as only available at the normal retiremnet date (65?), not earlier, and not paying a spouse's pension.

Check this out first.Do nothing to any of the policies until you have the info, as it is easy to accidentally lose these valuable GARs. Come back here and tell us what you have found then we can look at the other issues.

In addition, how old are you and when will you get your state pension?

I paid the married women's stamp until 1994 when I remarried and my govn pension is £64 per week.

Is that based on your husband's contributions or your own?

By the way what happens after the 10 years guarantee income - do they recalculate?

After that, you get nothing after the annuitant dies.

dunstonh

Get an IFA to give you advice on this. Its a no cost option for you.

If the Pru turns out to be the best option they will pay the IFA. If another option pays more that provider will pay the IFA. If you dont use an IFA and do it yourself the terms are not improved and Pru will keep the money they would have paid the IFA for themselves.

Retired_I.F.A.

And get the IFA to explain drawdown in detail to you too.

stagey_2

Oh thanks - looking at the charts and taking the sums as a whole you can get better rates than the Pru offer - Pru don't say we can't go elsewhere. Where do I find an IFA that won't charge (silly ? maybe) given the pot isn't that big. I'm 63 but have continued working, and £64 is based on my own contribs (full stamp since 1994)- hubby is also 63 - the quotations we've had show joint life as well as single and guaranteed. Don't understand about 10 yr guarantees - but appreciate that if I don't have a joint life will get nothing if hubby dcd before me. Still need to know whether I'll lose out on gvment benefits tho. thank yu all for answering.

dunstonh

Where do I find an IFA that won't charge (silly ? maybe) given the pot isn't that big.

With annuities its often worth going commission basis as the commission is typically low (1-1.5% on average). It's also a bread and butter transaction for an IFA so no specialist knowledge above the norm is required.

stagey_2

EdInvestor wrote: »

If these are Retirement Annuity Contracts, have you checked whether they have Guaranteed Annuity Rates attached? These could be much higher than normal annuity rates.They could have restrictions though - such as only available at the normal retiremnet date (65?), not earlier, and not paying a spouse's pension.

Check this out first.Do nothing to any of the policies until you have the info, as it is easy to accidentally lose these valuable GARs. Come back here and tell us what you have found then we can look at the other issues.

In addition, how old are you and when will you get your state pension?



Is that based on your husband's contributions or your own?



After that, you get nothing after the annuitant dies.

thank you for your helpful reply - however I am having huge frustrations trying to get the Pru to answer the basic questions - and it's a call centre in India!! The quotations say Guaranteed Pension Annuity - Your Plan Retirement Annuity Contract - then all the different options are shown below. Would they have given those if 1) my husband couldn't take it until (2009) his elected year of retirement the quote is for June 2008 2) given the transfer value or each plan if weren't allowed to transfer. OR 3) could someone have pressed a button to run off quotations without knowing what they were about!!! Hargreaves say they will charge for actual advice. sincere thanks

dunstonh

however I am having huge frustrations trying to get the Pru to answer the basic questions - and it's a call centre in India!!

There may be things that Pru cannot answer. They are not authorised to offer opinion or advice or inform you of options available through other providers. So, if some of your questions need a non factual answer they will avoid answering.

Hargreaves say they will charge for actual advice.

Get a local IFA to sort it. HL are expensive for advice. A local IFA can do this on commission (the same commission Pru will keep if you do it yourself).

EdInvestor

stagey wrote: »

The quotations say Guaranteed Pension Annuity - Your Plan Retirement Annuity Contract - then all the different options are shown below.

What are the options?

Would they have given those if 1) my husband couldn't take it until (2009) his elected year of retirement the quote is for June 2008 2) given the transfer value or each plan if weren't allowed to transfer. OR 3) could someone have pressed a button to run off quotations without knowing what they were about!!!

I don;t think anyone can say without reading the documents, I do strongly suggest you find someone with the right qualifications to help you, you risk losing out badly if you don't, as it's clear there is a GAR on the pensions.

Hargreaves say they will charge for actual advice.

Everyone will charge for advice, but as mentioned the Pru (or whoever) will deduct the same fee anyway.More important is that you get a the right kind of advisor who understand the pension issues involved. You don't want an advisor who specialises in mortgages or flogging investment bonds, but someone with proper pension qualifications.

These two IFAs have always impressed me as having integrity and respecting the client's interests.For instance they both spoke up about the way Equitable Life was cheating its customers years before it collapsed - and were threatened with libel suits for their pains.They were shown to be right in the end of course.

www.williamburrows.co.uk.
www.alansteel.com

dunstonh

Ed is against people using smaller local firms. She prefers sending people to the big national firms. I think supporting your local economy is better.

There is no cost benefit using an online provider and indeed could cost you more (in the case of williamburrows which is also fee based).

Retired_I.F.A.

Go to a local IFA luv he wont charge you one penny just say you want advice on annuities and are happy for him to be paid via commission, take the paperwork you have with you and hubby of course.

The IFA will fill in a fact find asking you questions about your aims wants needs etc some you may find are irrelevent but they only serve to put himself in your shoes. That'll take an hour or so normally and you make an appointment to see him again.

By the second time you see him he will have looked into your paperwork in detail and have got together the best way foward for you to proceed. He has to by law. If that involves buying an annuity he will arrange that for you with the best rates he can get from the whole market place that suit your needs.

Then once thats done and you fully understand annuities get him to explain drawdown, it;s the modern alternative whereby the money remains invested and you draw an income from the fund. When you understand both then you decide which is best for you and if you understand but remain undecided follow his recomendation as i said by law he has to put himself in your shoes and advise whats best for you.

btw the g-teed term on an annuity quote means that should the annuitant die then the spouse gets the same full annuity for the remainder of the term of the g-tee then the % of the full annuity.