Has Anyone Heard Of Action In Retirement (Peterborough), please

Lucyeff wrote: »

Thanks for your replies. That has put my mind at rest - I did tell my Mum I was concerned, but she says she has it all in the bag. I mentioned about the tax implications and she says it's tax free.

If I'm completely honest, I have no idea about pensions at all. My Mum is up on it - she has explained it to me and I will hold my hands up and say it was complete gobbledegook. It's something to do with her and Dad's annuity and getting the best deal. She really seems to know what she's talking about, but I do worry because she said it was a company who 'just came up' on her laptop! She does know about her finances but maybe not so much about how dodgy the internets can be...:eek:

She did say actually that she sorted Dad's out through another firm a few weeks ago.

She has had some money issues and has managed somehow to overcome them, it's a long story but I'm not sure my Dad would cope with finding out something bad had happened to their pensions because of a dodgy firm. That was my main worry.

I really, really appreciate your replies on this!

Lucy

Your Mum sounds a bit like me. I had 'money issues' way way back (local bailiffs and debt-collectors had no need of a map to find their way to our house LOL) but that was years ago and I started to learn. In an earlier marriage as well, it was all very different from now, DH has a completely different attitude to money. I've always worked, made some good decisions but some not-so-good. We can all learn.

If you want an annuity the most sensible thing to do is to go to an IFA and ask him/her to search the market for the best deal for you, don't just take whatever you're offered first time, and this sounds to be what Lucy's mum has done.

I think the most important thing with the Prudential Income Choice Annuity (ICA) is to understand the risks associated with the product.

Declared "smoothed" returns on the product have been strong to date over a short period, but like dunstonh says there is always the risk of a change of strategy by the Pru. Their guys still talk about their With-Profits fund as their crown jewel, but a lot can change in a short space of time.

The ICA does have the option to transfer into a conventional annuity, but this can currently only be done via the Pru, and their annuities are not exactly the most competitive on the market at the moment.

It's also important to consider that even if the performance is strong in the medium to long-term, the income is likely to go up and down year on year. You've got to be prepared for the fluctuations in income, and budget accordingly.

My personal opinion is that the ICA or any WP Annuity should "fit" with the overall retirement income strategy. I think they generally fit best alongside other sources of retirement income like a conventional annuity, occupational scheme benefits etc. I'm less of a fan when all the pension eggs are placed in a single With-Profits basket.

Again, this is a personal preference but I think it is better that With-Profits annuities are sold on an advised basis, rather than non-advised through a firm like AIR. This is not so much to do with people not being able to make their own minds up, but more a case that it's better to speak to someone who is (definitely) qualified and (probably) more experienced before committing to a With-Profits investment. I think it makes a big difference if the person you are speaking to has been around the block and seen the good times and the bad, as they are more likely to give you a more measured picture than someone following a sales script who may not have any industry qualifications.

Anyway, glad the OP got everything sorted, and hope it all works out for the best.