Annuities for Couples
If you are thinking about retirement and you have a partner or significant other then you will most likely look at retirement options which cover both of you. In many situations, a person likes to know that in the event of an unexpected death their significant other would be cared for and as a result chooses to take out a joint annuity which covers both parties equally.
There are many joint annuity options available on the market which are designed to ensure that in the event of unexpected death the other partner is covered and in many situations people choose to take out these options to ensure peace of mind.
What is the benefit of taking out an annuity as a couple?
Taking out an annuity as a couple is generally used to give each partner the peace of mind that their partner is financially covered in the event of an unexpected death. This can ensure that even if only one partner was the major breadwinner, both partners are equally entitled to an annuity income and therefore a reliable source of income for the remainder of their lives.
What are some disadvantages?
When it comes to partner annuities, it’s important to remember that they take into account both partner’s situations and in some cases this could mean that one partner will receive a significantly lower annuity income than they would if they had taken out an individual annuity. As annuities are based on health, age and other lifestyle factors, if one partner is significantly better off than the other then they could bring down the joint annuity income.
What do I need to take into consideration?
There are a number of things that you need to consider when you are dealing with annuities. Firstly, you need to understand your individual situations and how your own health and lifestyle habits might affect your income amount. For example, if you are a great deal older or unhealthier than your partner, then the fact that your partner is included on your annuity income will mean that you will receive a lower income. In this situation you may look at the benefits of an individual annuity and compare this as an alternative, to find where you could receive a higher income.