Joint Life Annuity

A joint life annuity, or joint retirement income, provides an ongoing income stream for your spouse or partner should you die prematurely. Should you buy a joint life annuity?

Retirement income

Most couples choose to have a retirement income that benefits their surviving spouse or partner.

This option means that, should you die prematurely, a retirement income is paid to your surviving partner for the rest of his or her life. This type of arrangement is also known as a ‘partner’s pension’, and can be added to most annuities.

Any person of either sex might be eligible for a partners pension, although some insurance companies will insist that you can show that individual’s financial dependency on you if they are not your wife or husband.
 

Your spouse or partners retirement income

You can usually choose how much of your retirement income is to be paid to your partner when you die. This can be as high as 100%. Most couples, however, opt for an income between 1/3rd and 2/3rds of the annuitant’s income. The more you choose to be paid to your partner on your death, the lower your own income will be.

Financial dependency may need to be verified if, and when, the dependant’s retirement income comes into payment. The partner’s pension is also called a spouses pension, or a reversionary pension, because the retirement income reverts to your partner.

The age of your partner will affect your retirement income from a joint life annuity. The younger he or she is, the lower the income to you will be, because, should you die, the retirement income paid to your younger spouse will be for a longer period of time, i.e. until he or she dies.

To obtain your free, no obligation annuity quotes you can enquire online, or call us free on 0800 0124 374. One quick free phone call from you can make all the difference. We’re here Monday to Friday, 9 am to 6 pm.