Tiny annuities query

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EdInvestor
EdInvestor Posts: 15,749 Forumite
in Pensions, annuities & retirement planning
What's the smallest pension annuity you can buy and which providers offer very small annuities on an open market basis? Not bothered about the rate.
Trying to keep it simple...;)

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  • dunstonh
    dunstonh Posts: 116,372 Forumite
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    I did a £3000 annuity for someone last year.
    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
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    dunstonh wrote:
    I did a £3000 annuity for someone last year.


    Well that's a good start :)

    And the provider was......?
    Trying to keep it simple...;)
  • dunstonh
    dunstonh Posts: 116,372 Forumite
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    Standard Life. I took at look at the file and it was actually 2004 I did it. Their current minimum is £5000.

    There are ways round this though. Rather than do an open market option, you can do a transfer to any of the major insurers (L&G and NU for example). 30 dys after it arrives at the new provider, you request crystallisation and take the 25% from them with the remainder buying the annuity with them. There would be no lower limit in effect at that point.

    I have done that with L&G in the past.
    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
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    Like it. ;) Thanks for the info.
    Trying to keep it simple...;)
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