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Pension annuity rate
![[Deleted User]](https://us-noi.v-cdn.net/6031891/uploads/defaultavatar/nFA7H6UNOO0N5.jpg)
[Deleted User]
Posts: 0 Newbie


My pension provider has informed me that my pension fund has a guaranteed annuity rate of 9.25%. Would this be considered as a good rate when compared to other rates on the open market. I don't know whether to accept this rate or look for what may be a better rate. Does anyone have any experience of what annuity rates could be achieved? I know this may vary depending on age, health etc, but what would be a typical rate on the open market?
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Are you having a Laugh?0
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[quote=[Deleted User];discussion/3513397]what would be a typical rate on the open market?[/QUOTE]
Unless you're very old or in very bad health, half to a third of what you've been quoted.
It sounds like you are very lucky and should bite their hands off.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
casey_junior wrote: »Are you having a Laugh?0
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You are very very lucky indeed.0
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Probably only applies to you the annuitant. In which case the annuity would cease on your demise, leaving nothing for a spouse/partner.0
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Probably only applies to you the annuitant. In which case the annuity would cease on your demise, leaving nothing for a spouse/partner.0
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[quote=[Deleted User];47263845] If I include my partner or have any payment guarantees, the rate drops significantly.[/QUOTE]
How significant is that change for adding partner and/or escalating annuity?
If you do go for the GAR offer (and I can't see you being able to beat it) you'll need to ensure some of the up-front pension gets saved to cover later years when inflation has eroded the value of your pension.
This can be done via ongoing contributions to another pension, which can have tax advantages, but only if the tax situation is favourable. For instance, if your partner is likely to be a non tax payer, you could recycle some of the initial excess into a fresh pension for them.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »This can be done via ongoing contributions to another pension, which can have tax advantages, but only if the tax situation is favourable. For instance, if your partner is likely to be a non tax payer, you could recycle some of the initial excess into a fresh pension for them.
Its called churning - typically advised by IFAs to increase/continue their income stream at your expense.0 -
gadgetmind wrote: »How significant is that change for adding partner and/or escalating annuity?
If you do go for the GAR offer (and I can't see you being able to beat it) you'll need to ensure some of the up-front pension gets saved to cover later years when inflation has eroded the value of your pension.
This can be done via ongoing contributions to another pension, which can have tax advantages, but only if the tax situation is favourable. For instance, if your partner is likely to be a non tax payer, you could recycle some of the initial excess into a fresh pension for them.0
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