To think spouses get each others' pensions by default?

[VikkiSponge]

My husband has written instructions to the effect that his children (some we have together, some from a previous marriage) should receive his pension when he dies, not me. He tells me I'm unreasonable to expect to receive it and that it would not be tax efficient. AIBU?

He can nominate whoever he wants. I think if he doesn't nominate then the automatic person is spouse.

My DH has just had a letter asking for confirmation so they can update their records. I know I always used to be the nominee, even premarriage. No idea now.

DH and I can nominate who we want. 95% of mine is going to DH, the remaining 5% to my Adult Nephew.

Are you talking about a pension or lump sum?

You need to first start by telling us what kind of pensions you have!

But even then, why rely on some random on the internet giving you an opinion on something really important to your future - when they don’t have your scheme booklet in front of them?!!

How can you plan your retirement if you don’t know? Please, read your scheme details!

If it’s a DC pension, or an AVC part of a DB pension, they can nominate anyone they want, and that person will get the entire sum. It will also be inheritance tax free if the personal leaving it dies under 75.

If they’ve already converted a DC pension to an annuity and retired, there’ll either be nothing to leave, or a reduced spousal payment (spouse only) according to the terms they signed for that annuity.

If it’s a DB pension, there’ll be a nomination form. It’s not binding - it’s for the trustees to decide. But it’s pretty much considered binding.

With a DB pension, it’s rare that a spouse would get the entire pension benefit. There’s usually a spousal benefit. For example, my husband gets 50% of what I would have got. He gets that at 65 (my scheme retirement age) and he can request it from age 60, subject to an actuarial reduction.

But my husband actually already receives a spousal pension from his late first wife’s NHS pension - and has done since he was 40, when she died.

That’s why nobody here can tell you exactly what you and your husband’s schemes pay out, not least because you’ve not even told us what type of pension they are!

It’s really easy to contact the pension department and ask.

Whereas with mine, you can only nominate a spouse, financial dependent or financial interdependent.

Which is why people need to adult and actually read their scheme rules! (as you clearly have!)

@Testina TBH the plan is that there won't be much left when I croak anyway, I am going to spend it all!😆

My mum has made sure we get pension not partner, but then he's a partner later in life. I think it's different if it's a partner later in life (when you've each built your own finances etc) or blended families etc. DH's and my pension etc will transfer to each other and not children, but they're both of ours and we've built everything we have together since very early adulthood.

Depends.

I have left personal pension (not massive) and death in service payout 80% to DH and 20% to DD. I view it as my contribution to a wedding or house deposit for DD if I die young. My DH would probably have done this anyway but he’s a bit rubbish with accounts/admin so this ensures it. He has his own pensions, think I’m the beneficiary but I wouldn’t care if he left it to DD as I have my own. My works pension I think goes to him so I’ve left it at that.

where there are children from previous relationships, I think what your dh has done is fair. If the money all went to you, his children from the other relationships stand to get nothing, whereas your shared children may benefit.

if his dc were all shared, I would be surprised he had done this, but I would want all my dc to be treated the same following my death and this is the only way he can ensure this.

that it would not be tax efficient

I would want to know a lot more than that. For example, There is no tax paid on inheritance between parried people.

Almost all pension schemes are written in trust, with the pension trustees technically in charge of what happens. This means that any payout is outside the dead person's estate for tax purposes, so that tax is not relevant.

The big question is whether you will be reasonably comfortably provided for without his pension. If you already have good provision of your own then maybe fair enough. Even then, I would expect to have a discussion between you to agree what to leave to whom.