PensionsDec 23 2015

Santa’s retirement options all wrapped up

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Santa’s retirement options all wrapped up

Partnership has considered what retirement options Santa Claus has when he reaches his sixty-seventh birthday in 2018 and how his financial ‘elf’ adviser can help him make the choice that is right for him.

Santa’s adviser recognises that during a lifetime working in a stressful logistics role, he has developed some unhealthy habits and minor ailments.

“Although unwelcome, his adviser knows these can have a positive impact on his income in his retirement,” a spokesperson for the firm said.

Santa has a defined benefit scheme which was closed. He has worked hard to build up a defined contribution pension pot of £64,189 which will have to last him and his wife throughout a potentially long retirement.

Visiting the seven million households with children in the UK means that he quaffs a substantial amount of alcohol and eats many mince pies as he delivers all the gifts. His weight is above that recommended for a man of his height.

Clambering in and out of the chimney with a heavy sack has left him with back trouble and a chronic cough, plus the amount of travel means that deep vein thrombosis is a potential issue.

Meanwhile, Mrs Claus has had a lifetime of caring for reindeer and finds that the cold of the North Pole aggravates her arthritis. She is therefore looking forward to retiring to Christchurch in Dorset, which is arguably the ‘oldest’ town in the UK, where a third of people are aged over 65.

Jim Boyd, corporate affairs director at Partnership, explained that Mr Claus’ case may be extraordinary, but there are a great many people who find that the career they enjoyed and getting older has left them with a variety of minor medical conditions.

“Without proper financial advice many people might overlook the fact that these conditions might result in a far greater guaranteed income for life.”

Partnership said it was able to offer Mr Claus a joint-life enhanced annuity, with 50 per cent spousal benefit, which pays £3,736 per year guaranteed for life.

“The longevity calculations caused our actuaries a bit of a headache,” Mr Boyd said. “But we are confident that we can offer him substantially more than he might have received if he had spoken to a different insurer and provide him with the peace of mind that this income will be paid for life.

“Speaking to their financial ‘elf’ adviser to find out how to make the most of their pension pot is likely to mean that the Claus will have a happier new year than they may otherwise had.”