Your Pension Rights
I am getting married, what happens to my pension?
When you get married it doesn't normally affect your pension because you can carry on exactly as normal and your own pension belongs to you; you pay into it. So it really is business as usual. However, if you get divorced, then it can have implications because some of that pension may be passed to your spouse.
I am getting divorced, what happens to my pension?
When you get divorced, the pension normally forms part of the divorced settlement. Typically this could 50/50 but it does vary. Another option is if you want to hold onto your pension to actually exchange some money elsewhere in your settlement, as perhaps part of the house, or investments in lieu of the pension.
I am in a civil partnership, what are my pension rights?
Civil partnership rights are very similar to marriage rights. That's good news, as it effectively means that should you pass away, then your pension can pass to your surviving partner. It also means that on separation, it could be part of a separation settlement.
I am married, what happens to my pension if I die?
The basic state pension dies with you, so unfortunately that can't be passed to your surviving spouse. However, if you paid an additional voluntary contribution, then sometimes that can pass to a spouse. Personal pensions work quite differently. When you retire, you often convert your pension to an income through what's called an annuity. When you buy an annuity, you have an option as to how much of that pension you want to pass to your spouse when you die. The more that you want to pass across to them, the lower income you're going to start with because obviously it's going to cost the life company more money in the longer term.
I am not married, what happens to my pension if I die?
As with everyone else, you lose the entitlement to the basic state pension, so that dies with you. If you have a personal pension, and although you can, in theory, leave it to possibly other relatives, or children or grandchildren if they're around, it's very complex, potentially quite expensive, and not for most people. So, in most cases, the personal pension would die with you, too.
Do men and women get equal rights with their pensions?
At the moment, pension rights are the same for men and women with one simple exception. Women can retire at age 60 where-as men it's 65 but this is going to change in 2020 when it's 65 for both. Now, if you have a personal pension and you convert that pension to an encumbered annuity when you die. At the moment, women tend to get slightly poorer rates because they're likely to live longer. It's going to cost the annuity quite a more money they're going to have to pay out for longer. Other than that, it's equal treatment for both.
