pension advice please

fairypoppins

Thank you so much everybody. We have alot to think about.

Doshmedico- can we ask for it all back now? Will we get it all or will we be penalised. If we could we would want to reinvest the 75%, which is £30,000.

I am a bit confused!

fairypoppins

James

The forms from the Pru include one that mentions a higher rate for illness such as diabetes.

jamesd

Doshmedico, the amounts here aren't large enough to be affected by the anti-recycling rules. Minimum where real care is needed is £17,500 lump sum recycled, 1% of the lifetime pension pot limit.

fairypoppins, good that they mention it and no harm asking them for a quote but it's very unlikely that they will be the ones offering the highest payout if you do go for the annuity option.

You might want to give Hargreaves Lansdown a call. They are helpful and can do most of what you need, maybe a restricted range of annuity providers, though, so they may not be sufficient for that part of the job. Plenty good enough to get some alternative quotes. They are friendly and helpful and offer the option to take a pension pot transfer, pay out the 25% and leave the rest invested instead of forcing you to buy an annuity. It's possible to get better deals than them on cost, though, unless you're experienced investors who want to use the fairly wide range of investments that they offer. Take care with their fully advised IFA service, that's quite expensive as such services go and you can probably get a better deal than using their advisers.

I use HL myself but I do make use of their fairly wide range of investment choices and still may transfer out due to costs eventually.

fairypoppins

Thanks James.

Can you clarify what you meant by your second paragraph pls, not sure what you were answering.

We are considering going with the Pru's quotation, letting them know of my husbands condition. Taking the 25% - starting the monthly payments immediately and putting them into an ISA! Can anyone see any problem with that ? Remembering we have two other pensions...etc.

fairypoppins

How can I tell that my Pru quotation is a good deal ?

dunstonh

How can I tell that my Pru quotation is a good deal ?

It wont be. On non enhanced cases they havent been coming out top for a while and for enhanced cases they are usually easily beaten by the dedicated enhanced annuity providers.

tarting the monthly payments immediately and putting them into an ISA! Can anyone see any problem with that ?

Yes. You are taking the money out of a totally tax free environment to put into a taxable one (income is taxable). You reduce the death benefits and buy an annuity at a lower rate than you would if he was older. If you dont need the income you shouldnt take it in most cases.

EdInvestor

https://www.fsa.gov.uk/tables

You can compare annuity rates in the Pension Annuities section of this site.

We are considering going with the Pru's quotation, letting them know of my husbands condition. Taking the 25% - starting the monthly payments immediately and putting them into an ISA! Can anyone see any problem with that ? Remembering we have two other pensions...etc.

The annuity income will be taxed.You can achieve the same result without paying the tax by going the drawdown route, and nor will you lose the capital, which you will with an annuity. With a drawdown, the remainder of the fund at death can be paid out to the beneficiaries minus 35% tax.If there are health issues this should be considered.

dunstonh

www.fsa.gov.uk/tables

You can compare annuity rates in the Pension Annuities section of this site.

Not for enhanced terms you cannot. They are very much based on underwriting decisions and a bit of haggling. Plus, the FSA tables dont include many of the options and make assumptions. Its useful as a guide only for clean health but you should never rely on it to pick a provider. One of the important options missed off is value protect, which may be suitable if the OP decides to go down the annuity route.

whiteflag_3

Yes. You are taking the money out of a totally tax free environment to put into a taxable one (income is taxable). You reduce the death benefits and buy an annuity at a lower rate than you would if he was older. If you dont need the income you shouldnt take it in most cases

Dunstonh please either remove your signature or start posting more balanced responses. Also in this thread there are a number of times you have come very close to giving "advice".

If you dont need the income you shouldnt take it in most cases

On what basis? Simply not true in my opinion (btw my opinion is based on running cashflow models for both scenarios)

Bendix is 100% correct when he said

You have a lot of responsibility on this forum - people take your views seriously. Simply dismissing questions with a factually correct but unhelpful 'no' is abnegating the responsibility you brought upon yourself by naming yourself as an IFA

dunstonh

Typical trolling from whiteflag. Quick to criticise but providing no information or help. Only posts to create an argument .

I'm sorry if my views are consistent with the industry and regulatory stance on this. Views which were again recently covered in the media.

http://www.citywire.co.uk/adviser/-/features/q-and-a-tax-and-pensions/content.aspx?ID=369355