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Difference Amounts to buy annuity

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alzieboy
alzieboy Posts: 3 Newbie
in Pensions, annuities & retirement planning
Hi from a new boy

I have just received two sets of figures from my pension provider to purchase an annuity, the sum to buy the annuity with the provider is over £3000k more than the figure for the open market option. Would appreciate comments and any advice please.

Alzieboy
:mad:

Comments

  • dunstonh
    dunstonh Posts: 119,767 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    the sum to buy the annuity with the provider is over £3000k more than the figure for the open market option.

    That is one hell of a transfer penalty ;)

    Would appreciate comments and any advice please.

    The site is not FSA authorised to give advice. Comment and discussion only.

    There is a well known provider that is doing this but most dont. Only on early commencement does it tend to happen with others and typically in legacy plans from years ago.
    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.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Which provider is it?

    Is the money invested in the provider's With profits fund?

    Are you taking the pension earlier than the date specified in the contract as your retirment date?

    Are you planning to take an annuity or income drawdoen?
    Trying to keep it simple...;)
  • alzieboy
    alzieboy Posts: 3 Newbie
    EdInvestor wrote: »
    Which provider is it?

    Is the money invested in the provider's With profits fund?

    Are you taking the pension earlier than the date specified in the contract as your retirment date?

    Are you planning to take an annuity or income drawdoen?

    The provider is Royal London , with profits, pension being taken at 60 as contracted, taking annuity
  • dunstonh
    dunstonh Posts: 119,767 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Are you sure the contract says 60?

    Have you asked for the open market figure or a transfer value?
    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.
  • alzieboy
    alzieboy Posts: 3 Newbie
    dunstonh wrote: »
    Are you sure the contract says 60?

    Have you asked for the open market figure or a transfer value?
    Yes the retirment date is 60, and is not an early buy out
    Yesit was an open market figure,:o
  • Tighthead
    Tighthead Posts: 37 Forumite
    Sounds wrong to me. Pension providers are obliged to offer the Open Market Option, free of charge (I think) i.e. no difference between the amount available whether you stay at RL or go elsewhere. Do you have a Guaranteed Annuty Rate (GAR) with RL? Have you asked them to explain the discrepancy?
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