Purchase annuity from Scottish Widows?

Channelman

I have an unclaimed 'SERPS equivalent' pension which was accrued
whilst I was working for a company which was not 'wholly
contracted out' of the government pension scheme.
I have already retired (aged 63) but not yet claimed this pension.
Under the present rules I have to buy an annuity with it but I suspect
that from April 2006 I may be able to take 25% as a tax free lump sum.
My question is (whether or I take the lump sum or not) should I 'shop
around' for the best annuity or will Scottish Widows 'clobber' me with a
transfer value reduction such that no one else would be able to compete?
The value (not the transfer value) quoted last July was nearly £29,000.
I realise that this will not be a large pension (about 1200 per year) but
I feel that I want to get some value out of it.
Thanks, Channelman

dunstonh

Under the present rules I have to buy an annuity with it but I suspect
that from April 2006 I may be able to take 25% as a tax free lump sum.

Correct.

My question is (whether or I take the lump sum or not ) should I 'shop
around' for the best annuity or will Scottish Windows 'clobber' me with a
transfer value reduction such that no one else would be able to compete?

They are not allowed to charge a penalty if you utilise the the open market option.

However, if you commence benefits or transfer prior to the selected retirement date, there is the potential for a charge to exist, regardless of what you do. However, in the case of Scot Wid, this is unlikely. A futher check should be if guaranteed annuity rates exist at any age. Scot Wid were one of the last to continue offering these. As late as 1995.

Channelman

Thanks for the speedy reply dunstonh.
I tried to remove this question and put it in the correct
section but you were 'just too damm quick'
Thanks again.