Is now the time to buy and annuity, with profits scheme?

Realers19

Hi,,
I caught part of a conversation on Moneybox regarding decisions relating to defined benefit schemes, especially those held in “with Profits”. Does anyone have an opinion? I am 55 and have about 72k in an L&G fund, to which I make no further contributions. I am currently employed and contributing to their defined benefit scheme (only 2 years in!) and plan to work for another 5-7 years. I guess the consideration is although an annuity now would not yield much of an income, with annuity rates at 6 year high and with profits schemes not as devastated as those exposed to equities- Yet! Is it time to take an annuity rather than transfer into the new scheme? If yes, then I would look to index link. Any opinions would be appreciated.

Thanks in advance – Realers19

dunstonh

I caught part of a conversation on Moneybox regarding decisions relating to defined benefit schemes, especially those held in “with Profits”. Does anyone have an opinion?

Defined benefits schemes have nothing to do with With Profits funds. Judging by your commments, I think you mean defined contributions.

There are many more options to income provision than annuity or with profits annuity. You need to consider those as well to get an informed choice.

Crystallising your pensions is a once only transaction. If you dont get it right, you are stuck with it for life with most of the options.