Spouse's Benefits and Annuities

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A single life annuity is an income for just one person. This will provide the greatest level of income. But if you're married or have a partner you might want to consider building in some sort of spouse's pension within your annuity. Doing so will reduce the initial income, but it does ensure that your spouse or partner will have an income in the event of your death.

You can opt for any percentage spouse's pension you want up to a maximum of 100%.

e.g. 
A 100% spouse's pension would mean that in the event of death of the annuitant (the person whose money buy's the annuity)  the income would continue at the same level for a spouse or partner.

A 50% spouse's pension would mean that the income would halve in the event of the annuitants death.

The drawback to including a spouse's pension would be that the initial level of income would be lower, and the greater the percentage the lower the income.

One other key point to consider is that if your spouse were to die before you then you would have received a lower income, and they will not benefit from it.

There are three other options which provide some protection for a spouse, rather than choosing a spouse's pension, all of which have their advantages and disadvantages. Opting for:

Value protection which provides a return of fund before age 75,  less payments made and after deducting tax at a rate of 35%. See more details about Value Protection

A guarantee period, which means that an annuity will be paid for a minimum period of time, ususally 5 or 10 years. Find out more about guarantee periods. 

Income Drawdown - this is not an annuity but a product that allows funds to be taken to be taken from a pension and used as an income. The remaining funds remain invested so if it grows by more than the amount withdrawn the fund should grow in value. Find out more about income drawdown.

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If you can't find the information you're looking for on the website, or you to know more or have a question, or just want to chat through some details about your pension then please feel free to contact us, without obligation. Either contact us online or call 0800 011 2713 .

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