Retiring as a couple

For many couples, it’s not until retirement is looming, that they start to realise they have some big decisions to make – including when they want to retire, and what they expect to do when they have.

All too often, only one person has any idea what kind of pension will be available. A wife may have spent most of her working life at home bringing up children, so only the husband will have accumulated any kind of pension pot to add to the State pension.

When the annuity is in the husband’s name many wives wonder what happens if the husband dies and worry that any income dies too.

Many people believe that an annuity dies with the person who takes it out, but that isn’t necessarily the case. This means choosing an annuity isn’t just a decision that concerns the person with the pension plan.

It’s a very good idea for dependants to be involved in discussions about annuities. And LV= annuities advisers will be more than happy explain our joint annuities that provide for both of you whatever happens in the future.

Before you make any decisions, have a chat with an adviser. You’ve both got everything to gain.

Before you can decide this you’ll need to work out what kind of lifestyle you want in the future. You’ll need to assess the value of your assets, what kind of income you can expect, what kind of lifestyle you would like, where you would like to live – and whether or not one or both of you would like to carry on working either full or part time.

Many people find it easier to retire in stages, rather than suddenly from one day to the next. There is nothing to stop you working and drawing a pension income at the same time – although, of course, both incomes will be taxable.

A Joint Life annuity will pay you an income for the rest of your life. After you die it will also continue to pay an income to your spouse, civil partner, or a dependant, for the rest of their life as well.

These are referred to as 'Dependant’s Annuities' and can be set up to pay your dependant the same income that you receive or just a proportion of it.

A Joint Life annuity will pay a lower income because your annuity provider will take into account the additional payments that may have to be made to your dependant after you die.

With a Joint Life annuity you can still choose a guarantee period and it's possible that payments would be payable under both options at the same time. This is called ‘with overlap’.

You can also specify that the 'dependant’s annuity' should only begin after the Guarantee Period has expired. This is called ‘without overlap’ and probably won’t reduce your income by as much.

Talking to an LV= annuities adviser will help you decide the best way to arrange a Joint Life annuity that suits your needs.