How it works
Joint Life annuities are a good option for couples where one partner has no pension or less pension savings than the other. You can choose for a percentage of your income to continue to be paid to your partner in the event of your death. This could be the full amount, but if you feel your partner would be able to manage on a lower income, you could opt for 50% or two thirds, for example.
Some joint life annuities allow you to pass on income to a dependant until they reach a certain age (usually 18 or 21). This could be a good option for older parents or guardians who expect to retire while their children are still young.
What’s the catch?
A joint life annuity means your provider will usually have to make payments for longer, so these annuities can be more expensive. And the more you want your partner to receive after your death, the more expensive it gets. Because of this, joint life annuities are usually only worth it if one of you has no pension, or a very small pension pot.
If you don’t mind receiving a lower income and want to be sure your partner or dependants are financially secure after you die, or don’t want to feel as though your pension savings will be “wasted” once you’ve passed on, a joint annuity is worth thinking about.
The annuity specialists we work with can compare rates from different providers, and help you weigh up whether you’d get better value from a joint life or individual annuity. Compare Annuity is able to give you a full, unbiased view of the annuity marketplace. The annuity specialists we connect you with can advise you on the most suitable products to meet your needs.