Pensions

chris_pike

My husband is 65 in September and is due to take his pension with Abbey Life. Should he buy an annuity now or defer for acouple of years it was worth about 17k? Chris

bendix

Do you mean his pension pot is worth £17,000 or that it is sufficient to generate an income of £17,000 per annum by purchasing an annuity?

nw_man

bendix wrote: »

Do you mean his pension pot is worth £17,000 or that it is sufficient to generate an income of £17,000 per annum by purchasing an annuity?

It would sure be nice if it generated an annual income of £17000 !

As for the OP question....dont forget the open market option.

bendix

But that's the question. Without knowing the answer, it's impossible to provide. There is a fundamental difference between what to do with a pension pot of, say, £17000 and one that is worth, say, £250,000 which might be expected to generate around £17000 per annum based on the gentleman's age.

If it's the former, then the £17000 pension pot will only generate income of, say, £900-£1000 per annum. Deciding to defer it becomes a non-issue because it's likely that he would be defering for two years on the basis that the annuity might be - for argument's sake - a couple of quid extra a week.

The figures would be totally different with a pension pot worth £250k, of course.

chris_pike

The pension pot is 17K unfortunatley.

SeniorSam

Just noticed you posted twice and I have replied to your other post.

Sam