Surviving spouse protected rights pension annuity (confused)

sussexlad2009

It seems to be the case that when you are least able to deal with complex life decisions, you are forced into them.

My wife passed away aged just 50 this August 2009.

I have since traced her pension and have been quoted a annuity based on its value.
The value is 19.3k and the annuity offered is £812.

Apparently if it was 17k I could have it as a lump sum which of course would be my preferred option as her death has meant I am out of pocket due to being off work etc.

I also hate it that her life has come down to pounds and pence, seems to trivialise matters :-(

However, she would want me to be safe so I am looking into it.

The company says I can get a quote from other pension providers.

I have no idea what to do, who to ask or if this deal is a good one or not.
£67 a month minus tax seems very low considering the actual value.

Please help.

Mike

yelf

how old are you - do you smoke or have any helath issues?

Youreally would need to see an ifa

sussexlad2009

yelf wrote: »

how old are you - do you smoke or have any helath issues?

Youreally would need to see an ifa

44, no and dormant sarcoidosis

EdInvestor

sussexlad2009 wrote: »

I have since traced her pension and have been quoted a annuity based on its value.

The value is 19.3k and the annuity offered is £812.

Apparently if it was 17k I could have it as a lump sum which of course would be my preferred option as her death has meant I am out of pocket due to being off work etc.

I suggest you query this.Death benefits are normally paid out in cash tax free outside the estate and are not subject to the triviality rules. There is often also an annuity option but it isn't normally compulsory.Ask to see the scheme rules.

Amanita_2

EdInvestor wrote: »

I suggest you query this.Death benefits are normally paid out in cash tax free outside the estate and are not subject to the triviality rules. There is often also an annuity option but it isn't normally compulsory.Ask to see the scheme rules.

The OP says these are protected rights funds. The option of a lump sum isn't allowable in this case.

Debt_Free_Chick

You have to use the pension fund value to buy an annuity.

There's a useful guide to whole process here

Although the guide is aimed at those retiring, you are now in this position, in that you need to buy an annuity with the fund value.

EdInvestor

Amanita wrote: »

The OP says these are protected rights funds. The option of a lump sum isn't allowable in this case.

Oops, missed that.