Pension with Aviva.

[markbe]

Hi all,

Are there any pension annuity experts out there?

I have a pension with GAR's with Aviva which matures soon.

To add my wife on at 50% they want to reduce my pension by 31%.

Yet when I check their Annuity calculator it reduces it by 17.5%!!

Are they having me over? Or am I missing something.

Mark.

[Simpo Two]

I'd give 'em a call. There's probably a simple explanation.

[sidicks]

markbe said:

Hi all,

Are there any pension annuity experts out there?

I have a pension with GAR's with Aviva which matures soon.

To add my wife on at 50% they want to reduce my pension by 31%.

Yet when I check their Annuity calculator it reduces it by 17.5%!!

Are they having me over? Or am I missing something.

Mark.

I expect that the guaranteed pension is only for a single life pension - if you want to have a spouse's benefit attached then you no longer obtain the guaranteed annuity terms, hence the larger difference?

[Helicopter123]

sidicks said:

markbe said:

Hi all,

Are there any pension annuity experts out there?

I have a pension with GAR's with Aviva which matures soon.

To add my wife on at 50% they want to reduce my pension by 31%.

Yet when I check their Annuity calculator it reduces it by 17.5%!!

Are they having me over? Or am I missing something.

Mark.

I expect that the guaranteed pension is only for a single life pension - if you want to have a spouse's benefit attached then you no longer obtain the guaranteed annuity terms, hence the larger difference?

This. It's fairly common with GARs

[otherman]

sidicks said:

I expect that the guaranteed pension is only for a single life pension - if you want to have a spouse's benefit attached then you no longer obtain the guaranteed annuity terms, hence the larger difference?

Correct. One quote is to pay the pension on the life of one person. The other is to pay on the longer of two lives, one being a woman who is statisticallly likely to live longer. It's just an actuarial calculation.

[sidicks]

otherman said:

Correct. One quote is to pay the pension on the life of one person. The other is to pay on the longer of two lives, one being a woman who is statisticallly likely to live longer. It's just an actuarial calculation.

No, you've missed the point - I'm suggesting that the first quote is to pay out on a single life only but on significantly preferential terms due to the guaranteed rate in the contract, the other is to pay out on joint lives, based on standard market terms.

I believe there's a more significant difference than the basic actuarial adjustment you are referring to - this would normally be around a 10% difference.

[markbe]

sidicks said:

No, you've missed the point - I'm suggesting that the first quote is to pay out on a single life only but on significantly preferential terms due to the guaranteed rate in the contract, the other is to pay out on joint lives, based on standard market terms.

I believe there's a more significant difference than the basic actuarial adjustment you are referring to - this would normally be around a 10% difference.

Hi Sidicks,

Fig's are; for me........... 100%
50% wife 3yrs younger.....80.6%
50% wife 13yrs younger....69%

These are on offer today, I just wont to be sure these are the norm.

Mark.

[sidicks]

markbe said:

Hi Sidicks,

Fig's are; for me........... 100%
50% wife 3yrs younger.....80.6%
50% wife 13yrs younger....69%

These are on offer today, I just wont to be sure these are the norm.

Mark.

I don't have access to any data to verify the above, but the figures don't seem unreasonable.