Exchanging partner’s pension for extra old-age pension
If you have a partner when you retire, we will assume by default that you want to provide a partner's pension for them.
By default, the variable partner's pension payable after your death is set at 70% of your old-age pension.
When you retire, you can choose:
a lower partner's pension; or
no partner's pension.
If you do not have a partner on your pension commencement date, only an old-age pension will be purchased automatically.
If you do have a partner on your pension commencement date, you can decide together to choose a lower partner's pension or no partner's pension.
Whether this is the right choice depends on your personal circumstances. For example, your partner may have their own pension or sufficient income from other sources.
Your partner must always agree if you choose a lower partner's pension or no partner's pension in exchange for a higher old-age pension.
What options are available?
You can choose a lower partner's pension.
Instead of a partner's pension equal to 70% of your old-age pension, you can choose:
50% of your old-age pension;
25% of your old-age pension; or
no partner's pension at all.
This choice can have significant consequences if you die after your pension has started. In that case, your partner will receive a lower partner's pension or no partner's pension at all.
For that reason, we recommend that you carefully consider this choice, discuss it with your partner and seek advice from a financial adviser if necessary.
Please note: exchanging partner's pension for a higher old-age pension is a one-time choice. Once you have made this choice, it cannot be reversed.
If you have a partner registered with the pension fund, your partner must agree to this choice. Your partner does this by co-signing the pension application.
Would you like more information or would you like to know exactly what our pension plan offers you? Please read to the Pension Regulations.
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