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
    • Arthog
    • By Arthog 11th Jul 17, 10:58 AM
    • 144Posts
    • 187Thanks
    Arthog
    Cashing in a small Annuity
    • #1
    • 11th Jul 17, 10:58 AM
    Cashing in a small Annuity 11th Jul 17 at 10:58 AM
    I have an Annuity with capital of under £5000. Legally I can cash it in. What is the best way of going about it?
    According to the newspapers, many of the ompanies are not willing to allow it, so in my contacts with them I need to pre-empt their refusal or blocking tactics!
Page 1
    • greenglide
    • By greenglide 11th Jul 17, 11:08 AM
    • 2,716 Posts
    • 1,720 Thanks
    greenglide
    • #2
    • 11th Jul 17, 11:08 AM
    • #2
    • 11th Jul 17, 11:08 AM
    You cannot "cash in" an annuity.

    Do you really have an annuity (an annuity does not have a "capital") or do you actually have a pension fund which you want to drawdown?

    Are you receiving payments from this?
    • AnotherJoe
    • By AnotherJoe 11th Jul 17, 11:25 AM
    • 6,853 Posts
    • 7,278 Thanks
    AnotherJoe
    • #3
    • 11th Jul 17, 11:25 AM
    • #3
    • 11th Jul 17, 11:25 AM
    I have an annuity with capital of under £5000.
    Originally posted by Arthog
    Does not compute.

    Either you have an annuity, or you have capital of £5k in some form.
    • xylophone
    • By xylophone 11th Jul 17, 12:19 PM
    • 21,989 Posts
    • 12,686 Thanks
    xylophone
    • #4
    • 11th Jul 17, 12:19 PM
    • #4
    • 11th Jul 17, 12:19 PM
    http://www.thisismoney.co.uk/money/article-4030492/Does-annuity-small-print-says-sell-one-example-experts-say-ll-more.html

    http://www.thisismoney.co.uk/money/pensions/article-3871820/Secret-law-says-cash-annuity-surprise-surprise-insurers-refusing-pay-up.html
    • AnotherJoe
    • By AnotherJoe 11th Jul 17, 1:19 PM
    • 6,853 Posts
    • 7,278 Thanks
    AnotherJoe
    • #5
    • 11th Jul 17, 1:19 PM
    • #5
    • 11th Jul 17, 1:19 PM
    Both those articles seem to me to be misleading and contradictory

    They talk about your "pot" but you don't have a pot once you have an annuity.

    They also variously talk about the £10k rule saying you can cash in your pot (that you don't have) if it's less than £10k or you can cash in your annuity if the payment is less than £10k.

    The OP talks as if he has a definite sum, but that's not possible. He may once have had a lump sum but that went when he bought an annuity (if he did)

    I'm suspecting the OP does not have an annuity, but has a lump sum with a provider that doesn't provide drawdown. But until more info is forthcoming not much more to be said.
  • jamesd
    • #6
    • 11th Jul 17, 1:28 PM
    • #6
    • 11th Jul 17, 1:28 PM
    Do you really already have an annuity that is paying you regular income? Or do you just have a pension pot that allows buying an annuity as one of many possible choices? Annuities don't normally have a pot value so it seems unlikely that you actually have an annuity at the moment.

    If you have a pension pot worth five thousand Pounds you can simply ask for it to be paid to you or transferred to a pension which offers this feature. No fuss or strife required.
    • Arthog
    • By Arthog 11th Jul 17, 5:12 PM
    • 144 Posts
    • 187 Thanks
    Arthog
    • #7
    • 11th Jul 17, 5:12 PM
    • #7
    • 11th Jul 17, 5:12 PM
    Thanks for the replies.


    It is called a Retirement Annuity, yet I am informed annually of the value of the units I hold, currently £4,900. It's with a Canadian company and I'm wondering whether the terms differ. The documents say 'There is no cash-in value at any time', but that was before the law changed in the UK
    After reading your posts, the best thing for me to do is to contact the company to find out the exact details.
    Many thanks.
  • jamesd
    • #8
    • 12th Jul 17, 11:57 AM
    • #8
    • 12th Jul 17, 11:57 AM
    Seems like a retirement annuity contract, a common sort of thing there. It's governed by Canadian law, not UK, so you can pretty much ignore anything you read about what UK law requires or allows. Given the contract term it's unlikely that you will have a choice but no harm in asking.
    • AnotherJoe
    • By AnotherJoe 12th Jul 17, 12:02 PM
    • 6,853 Posts
    • 7,278 Thanks
    AnotherJoe
    • #9
    • 12th Jul 17, 12:02 PM
    • #9
    • 12th Jul 17, 12:02 PM
    Thanks for the replies.

    It is called a Retirement Annuity, yet I am informed annually of the value of the units I hold, currently £4,900. It's with a Canadian company and I'm wondering whether the terms differ. The documents say 'There is no cash-in value at any time', but that was before the law changed in the UK
    After reading your posts, the best thing for me to do is to contact the company to find out the exact details.
    Many thanks.
    Originally posted by Arthog
    In what way do you think the law changed in the UK regards annuities ?
    Are you receiving payments from this scheme ?
    • Malthusian
    • By Malthusian 12th Jul 17, 12:46 PM
    • 2,393 Posts
    • 3,315 Thanks
    Malthusian
    It's governed by Canadian law, not UK
    Originally posted by jamesd
    Not necessarily. The OP may have a UK pension from Sun Life Financial Of Canada's UK subsidiary or Canada Life's.

    The OP has still not drip-fed enough information for us to give a useful answer.
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

1,002Posts Today

6,754Users online

Martin's Twitter
  • Byebye! I'm about to stop work & twitter, to instead spend glorious time with Mrs & mini MSE. Wishing u a lovely summer. See u in 10 days.

  • WARNING Did you start Uni in or after 2012? The interest's rising to 6.1%; yet it doesnt work like you think. See https://t.co/IQ8f0Vyetu RT

  • RT @JanaBeee: @MartinSLewis Boris is the anomaly (coffee), the others are versions of normal (beer). Lots of same candidates = vote share d?

  • Follow Martin