Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • williegofar
    • By williegofar 9th Jun 17, 2:08 PM
    • 196Posts
    • 108Thanks
    williegofar
    Simple question about annuities
    • #1
    • 9th Jun 17, 2:08 PM
    Simple question about annuities 9th Jun 17 at 2:08 PM
    Hi,
    This is an embarrassingly dumb question about annuities. I will be 55 in 18 months. I'm aware that at that time I can transfer my pension 'pot' into an annuity. But my question is when does this start paying out?

    I've tried a couple of annuity calculators online; although they show different figures relating to the age you are when you purchase the annuity, they don't say when they start paying out, i.e. immediately or when you reach state pension age, or whatever.

    As I say, embarrassingly dumb question, but I would be very grateful for any replies.
    Thanks.
Page 1
    • Linton
    • By Linton 9th Jun 17, 2:23 PM
    • 8,199 Posts
    • 8,057 Thanks
    Linton
    • #2
    • 9th Jun 17, 2:23 PM
    • #2
    • 9th Jun 17, 2:23 PM
    Normally you purchase an annuity to start immediately.
    • williegofar
    • By williegofar 9th Jun 17, 2:45 PM
    • 196 Posts
    • 108 Thanks
    williegofar
    • #3
    • 9th Jun 17, 2:45 PM
    • #3
    • 9th Jun 17, 2:45 PM
    Thanks a lot for that.

    I'm your classic 'head in the sand' regarding pensions. I'm about to be made redundant after working for the same company for a long long time. The amount of money in my pensions (final salary scheme for the first 16 years) amazes me. I'm astonished to discover that I could actually probably retire now.

    Anyway, thanks again.
    • AnotherJoe
    • By AnotherJoe 9th Jun 17, 4:10 PM
    • 7,235 Posts
    • 7,745 Thanks
    AnotherJoe
    • #4
    • 9th Jun 17, 4:10 PM
    • #4
    • 9th Jun 17, 4:10 PM
    Unless there are special circumstances such as very poor health, buying an annuity at age 55 is most likely a very poor financial option compared to the alternatives.
    • williegofar
    • By williegofar 9th Jun 17, 4:44 PM
    • 196 Posts
    • 108 Thanks
    williegofar
    • #5
    • 9th Jun 17, 4:44 PM
    • #5
    • 9th Jun 17, 4:44 PM
    Thanks.

    I am very much a novice at this, but I will be getting myself a financial adviser before I make any decisions.
    • bostonerimus
    • By bostonerimus 9th Jun 17, 5:47 PM
    • 862 Posts
    • 436 Thanks
    bostonerimus
    • #6
    • 9th Jun 17, 5:47 PM
    • #6
    • 9th Jun 17, 5:47 PM
    Annuity rates are very low right now so your money won't buy much lifetime income. Before you do anything look at the alternatives like flexible drawdown and make sure you understand exactly what you are buying and why.
    Misanthrope in search of similar for mutual loathing
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,207Posts Today

6,839Users online

Martin's Twitter
  • Shana tova umetuka - a sweet Jewish New Year to all celebrating. I won't be online the rest of t'week, as I take the time to be with family

  • Dear Steve. Please note doing a poll to ask people's opinion does not in itself imply an opinion! https://t.co/UGvWlMURxy

  • Luciana is on the advisory board of @mmhpi (we have MPs from most parties) https://t.co/n99NAxGAAQ

  • Follow Martin