Wasted Pension

[Runemaster]

Hi
I am in a dilemma regarding my pension going to waste and would be grateful for some input. I am about to receive my pension which is fine, I have worked many years doing long hours in an extremely dangerous and stressed job. However it is a feature of my pension that when I die, half goes to someone I am either married to, or in a civil partnership with. I have a DF who I cannot marry, as she is in receipt of a widows pension, who was high up in a certain medical organization, and if she remarries or co habits loses her pension. When I die my pension just goes back to the government, it's a five figure sum per annum. My dilemma is should I marry someone or enter a civil partnership so they receive my pension after I pass? I wouldn't do anything illegal I have very high ethics.

But surely this is the same for every 'single' person on retirement?

The insurance company is 'gambling' on the fact that you die before you have taken out what you put in. (or govt etc).

Exactly. There is nothing unusual in this situation surely!

Is this “ask odd questions about pensions” day?

But surely this is the same for every 'single' person on retirement?

No different pension arrangements have different types.

Rules not types!

OP I asked who you would marry bearing in mind you already have a fiancé. Your last post sounds like you are leaving the thread, so are you done with this discussion now?

Can you release equity in a pension?

I understand your predicament OP .
My exDH felt / feels the same !

He looked at every way I could still get the widows pension from his scheme when he eventually passes ( hopefully a long way away )
But it just wasn’t possible and we did consider staying married in name only for this reason ...
however it gave us other issues re inheritance etc and other assets when one passed while still married (Scottish Law )
So reluctantly we divorced and my entitlement had gone ...

He felt like you that he didn’t want it just going back into the scheme when he had contributed so much ....

It's odd that they won't let you transfer it out as trustees are usually desperate to discharge liability. Plus there's a statutory entitlement to let you do so. Unless you're within 12 months of your normal retirement age? But usually trustees will waive this, especially if your own circumstances show it's in your best interests to transfer out.

Are you in the Judicial Pension Scheme by any chance?

To be honest, if you’re on a old style civil service pension you’re going to be set and I wouldn’t be complaining about any widow entitlement being lost. You’ll have a better pension than most people can dream off.

DH and I are in the middle of switching our final salary pensions to a SIPP, mostly so we have an inheritable pot for our D.C., but also because our transfer values are such right now that we’ll be able to take more out without running down the pot than the DB pensions will pay out (though obviously the stock market might crash and so on...).

Can you definitely not transfer to a SIPP- as in, have you specifically asked this question? Many advisers won’t advise it as most people are better off staying in their DB scheme, but some people could be better off switching. I know some schemes don’t let you, but most do, so if you haven’t specifically asked, it might be worth doing so.

But the amount that the pension pays out is higher because they assume some people will die without leaving a widow(er). If everyone marries a random then the money is spread more thinly. The point of pensions is partly an exercise in spreading risk. The more people do this the more or will drive down annuity rates and make pensions unsustainable.

I would wait. I mean your df may die before you and you never know you may meet someone else or at least you could marry someone then who would benefit if you do wish