We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Annuity Purchase
roysterer
Posts: 127 Forumite
This may seem a daft question but:-
When the time comes to buy an annuity at retirement, and you choose to buy from a different Provider than the company you invested your Pension with.
Do you get Penalised for transfering your fund to the NEW provider?
as you would if you transfered your Pension fund to a different provider during contributions prior, to retirement.
When the time comes to buy an annuity at retirement, and you choose to buy from a different Provider than the company you invested your Pension with.
Do you get Penalised for transfering your fund to the NEW provider?
as you would if you transfered your Pension fund to a different provider during contributions prior, to retirement.
0
Comments
-
Depends what you mean by "penalised", what you're transferring out of, and when yo're transferring.
"Normally" no - you wouldn't be penalised. Your provider will know your NRD / SRD. However if you're invested in with-profits and you're taking early retirement, then it's highly likely you'd get a market value reduction applied.0 -
This may seem a daft question but:-
When the time comes to buy an annuity at retirement, and you choose to buy from a different Provider than the company you invested your Pension with.
Do you get Penalised for transfering your fund to the NEW provider?
as you would if you transfered your Pension fund to a different provider during contributions prior, to retirement.
If you are retiring at the date specified in the policy then no, there are no penalties. If you retire before or in some cases after the originally chosen retirement date then penalties may apply.
(If you have the benefit of a guaranteed annuity rate on your pension plan then you will lose it if you move away - but you would of course spot this ( I hope) before making the transfer)0 -
Do you get Penalised for transfering your fund to the NEW provider?
as you would if you transfered your Pension fund to a different provider during contributions prior, to retirement.
The introduction of stakeholder pensions 10 years ago ended this practice in most cases, although you can still get problems (eg MVAs) with legacy WP pensions.Be very careful about the terminology used, that you 'take benefits' or 'crystallise' the pension, as opposed to transferring it.
Some companies impose a penalty if you move into drawdown rather than taking an annuity, which is outrageous.Trying to keep it simple...
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.8K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.6K Spending & Discounts
- 247.7K Work, Benefits & Business
- 604.6K Mortgages, Homes & Bills
- 178.7K Life & Family
- 262.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards