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Pension Annuity
Comments
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After all that they will probably say there isnt any
However, it is worth checking as this is a once only transaction. Once you have done it, it is cast in stone. You must get it right first time. Plus SM do have plans with guarantees so it is a possibility.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
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:rotfl: Cricky dunstonh you put a smiley, by the way thanks for the advice, worth a try. No worries I would not dream of holding anybody responsible for their views on this website like some, and yes I am a long term lurker on here. :rotfl: :hello: :j :rolleyes:0
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I am a female about to retire. I have had a number of jobs over the years and at two different periods, I was a) self employed and b) for a short while a company director (of my own company). I contributed to a self employed and a director's pension scheme with Abbey Life (I was not contracted out of the state scheme). There are thus now two pension pots in Abbey Life. These are now worth £23,000 (for self employment period) and £9,600 (for brief spell as company director). These amounts can be used in various ways: to buy a pension from AL, with or without taking lump sums, Open Market Transfer Value (or defer). AL will pay an annual pension of £1368 on the £23,000 pot and £555 on the £9,600 pot.
I know nothing about pension schemes really. Are the Abbey Life rates comparable to the rest of the market? I have heard that no one really wants to take on small pots and maybe I should I try to roll up both and get an Open market transfer for them. I was thinking of deferring taking the pension (I can afford to do this) while I sought further advice. I have not had good experience from advisors in the past. Can anyone advise on who might be suitable?0 -
I should add that the letters from Abbey Life say I have to let them know, in writing, by my retirement date if I am intend to defer taking my pension. Otherwise they will automatically activate it with them. Also I have to give date I plan to take it if I do defer it. It is not clear from the letters if once deferred, I can defer it again. I don't know yet when I want to take it as I am still working. Is all this forcing me to decide now actually legal?0
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For future note usignuolo, please create your own thread when asking an unrelated question. Thread hijacking is considered rude and it can make following a thread difficult if multiple conversations are going on at the same time.Are the Abbey Life rates comparable to the rest of the market?
Not usually.I have heard that no one really wants to take on small pots
That is correct. However, small pots tends to be those under £10,000 after 25% TFC has been taken.maybe I should I try to roll up both and get an Open market transfer for them
OMO may not be available with all providers. Transfer with immediate commencement may be required (effectively the same thing but different paperwork requirements). When there is more than one source then many annuity providers require you to use transfer rather than OMO. However, that is no longer a 100% as some of the providers have moved on that front. Although there still can be pros and cons against using transfer or OMO.Can anyone advise on who might be suitable?
only one answer to that. Any IFA. https://www.unbiased.co.uk is the UK database for IFAs. You can post code search to find a local one.I have to give date I plan to take it if I do defer it. It is not clear from the letters if once deferred, I can defer it again.
Just give another year or two. Abbeys plans dont hold a penalty if you take them in an interim year. You could stick it to age 75 if you wanted.Is all this forcing me to decide now actually legal?
Yes. You selected your retirement age on the application when they were set up. You have now hit that age so they need some action to be taken. Deferment seems the obvious one. Although I wouldnt be surprised if transfer is recommended as Abbey Plans are usually easily improved upon by modern options.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
You can get an idea of what is available elsewhere by inputting your info in the pension annuity section here:
https://www.fsa.gov.uk/tablesTrying to keep it simple...0 -
Sorry I did not mean to hijack - I thought I was carrying on a theme on pensions apologies.
Usignuolo0 -
Just to add that I now read that Abbey is unusual in imposing a default pension on you without the choice if you do not defer - a dentist is taking it to the FSA as they had not retired at the time a default pension was imposed. They are claiming they should not have had a default option pension imposed on them as there are a number of factors to consider before making a final decision. The article I read said quite a few other providers just allow the plan to roll forward if no decision is taken at retirement age.
I will now start a new thread for the rest of my questions.0 -
Just landed. You say you could put your money into a savings pot and still have the same income and be able to leave the capital to your beneficiaries.
Apart from the fact that interest rates may fall, if you are in good health you could always buy a life insurance policy for the amount of your pension pot from your annuity. This would let you leave it to your beneficiaries.
Financial planning doesn't end just because you've retired!0
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