Joint annuity

Jim’s story – 65 years old

Jim is looking to retire soon and is looking at the best options for him and his wife. He’s a few years older than her and wants to make sure his pension pot will provide for her should he die first.

Jim’s full story

At Jim is looking to retire in a little over a year’s time. He and his wife Carly have always been a team when it comes to money, and Jim wants to make sure continues to provide for her should he die first.

When Jim retires he’ll take his 25% tax-free lump sum of £17,500 and use the rest to buy a joint annuity. Jim considered leaving his pension pot invested so that if he passes away earlier than expected there would be a lump sum to leave to his beneficiaries. However, Jim decided not to do this as he wanted to have a guaranteed income.

Jim knows that with a joint annuity his monthly income of £190 could be significantly lower than he would get from an annuity just for himself. He feels he’s made the right choice as he can enjoy the security of knowing that Carly will continue to get a regular income should she be left without him.

Jim’s plan is to ensure of his annuity income when he’s gone, so she’ll have around £95 a month to live on in addition to her State Pension when she becomes eligible.

Please click here to read the assumptions we’ve made

Scroll down to see Jim’s figures

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