As a comparison, if you were to buy the maximum PS25 per week at age 65 you would be spending PS22,500 to get an extra PS1,300 per annum, which is double the amount from a comparable joint life annuity
with index linking and a 50 per cent spouses pension.
Q I purchased a joint life annuity
which would pay a pension to my wife on my death.
You can acquire either a single life annuity (which provides life-long income for you alone) or a joint life annuity
(which provides annual income for as long as either you or your spouse/sibling are alive).
Many are attracted to them because they offer a higher rate than a joint life annuity
When you die, payments stop, unless you have chosen a joint life annuity
or a guaranteed payment period ?
Vince Smith-Hughes added: "You can choose a joint life annuity
which will pay an income to a spouse or dependent after your death and alternatively or as well as you can purchase a guarantee that the income will continue for a set period up to 10 years after the death of an annuitant.
In this article, the authors describe the structure of joint life annuity
products that are currently available and show that these products provide married couples with asset allocation options that are simply not achievable with single-life products.
A joint life annuity
, on the other hand, would see a spouse continue to receive an income.
If you are purchasing a joint life annuity
, even if the annuity holder is in good health, you can still receive an enhanced rate based your spouse's state of health.
BRG also explained the difference between a single life and joint life annuity
For example, a typical 65-year-old man with a main pension pot of pounds 50,000 and with a 62-year-old wife will receive pounds 3,156 per year with a joint life annuity
Or a joint life annuity
will continue to be paid ongoing to a partner.