Stupid question alert!!
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He has nominated me as the beneficiary but he's read it that the pension just stops if anything happens to him and I get nothing
Where on earth did he get that idea?
To not understand pensions is fine, to make stuff up and say you're going to make yourself poorer on the grounds of stuff you've made up is another thing.0 -
He didn't make it up that was his understanding (probably incorrectly) of the documents he had infront of him. Like I said I think we will be better seeing an ifa face to face and having things explained in laymans terms to us that way our understanding can be (vastly) improved0
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It sounds like sending your husband to see an IFA would be money well spent.0
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He has nominated me as the beneficiary but he's read it that the pension just stops if anything happens to him and I get nothing0
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Re your husband's workplace pension - see below re increasing contributions.
http://www.thepensionsregulator.gov.uk/en/employers/phasing-increase-of-automatic-enrolment-contribution
https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief
Which workplace pension scheme is he in?
And the private scheme?
He is sure that he has nominated you as his beneficiary on both?
What are your own pension arrangements?
Have you both obtained state pension statements?
https://www.gov.uk/check-state-pension0 -
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My guess is the documents gave an estimated figure for an annuity taken at retirement with no provision for a surviving spouses pension. If that's the case ignore it.
My thoughts exactly.
I have a small pot with the Pru. that I haven't paid into for several years. It is worth around 50k but guarantees to pay me an annual pension of a little over 4k at age 65.
Sounded good to me, but on reading the small print this assumes that I purchase a flat rate single life annuity.
So if I die before retiring, the fund could would pass to my nominated beneficiary, but if I was to purchase the annuity then obviously it would not. My wife is 10 yrs younger so obviously that annuity would be a non starter.
Regards
James0 -
sunnyjim1234 wrote: »My wife is 10 yrs younger so obviously that annuity would be a non starter.
Not necessarily. How about taking the annuity and using part of it to pay contributions to a whole-of-life insurance policy that will pay out to your wife when you snuff it? You'd reconsider nearer the time, of course, but you can keep the idea in mind. You'd want a WOL policy that had fixed contributions.
Or you could back up your future Pru pension by contributing now to a pension for your wife. The thing is to diversify.Free the dunston one next time too.0 -
Not necessarily. How about taking the annuity and using part of it to pay contributions to a whole-of-life insurance policy that will pay out too your wife when you snuff it? You'd reconsider nearer the time, of course, but you can keep the idea in mind. You'd want a WOL policy that had fixed contributions.
Or you could back up your future Pru pension by contributing now to a pension for your wife. The thing is to diversify.
Thank you for that suggestion, I will certainly keep it in mind.
I am due to start drawdown in a few months time and have been thinking about drawing down an extra amount to pay £2880 into a pension for her in order to benefit from her personal allowance in the future.
Many Thanks
James0 -
A remaining DC pension pot goes to his nominated beneficiary on his death, full stop. You would only get nothing if he has drawn down and spent the lot first, in which case he wouldn't be getting anything either from that point on.
You could also end up with nothing if he bought an annuity w/o a survivors benefit0
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