Protected options for potential transfer?

martinwh

I do not think you will regret that decision. I do not think IFAs should be able to sell these types of complicated products without making people fully aware of all the terms and conditions. Best wishes

soperman

Just one other thing that we haven't picked up on this. Does your Pru policy provide you with a guaranteed pension and/or any cash lump sum in the event of your wife's death prior to taking retirement benefits?

dm999

Yes, good point it provides a spouses pension in that scenario.

soperman wrote: »

Just one other thing that we haven't picked up on this. Does your Pru policy provide you with a guaranteed pension and/or any cash lump sum in the event of your wife's death prior to taking retirement benefits?

jamesd

You're cynical and almost certainly right in this case.

It's worth considering what the guarantees of the Pru policy are and how they compare to others or income drawdown (which can use just about any mixture of investments to hit any desired risk target, including all cash or all UK government bonds with fixed maturity dates and government-guaranteed values). Drawdown provides a 100% spousal pension at no extra cost and that can be of significant value. Also has provisions via a "scheme pension" to take out higher than standard annuity values if there's anything health-wise that affects life expectancy, a bit like an enhanced or impaired life annuity.

Just in case nobody has explained it, if you want very low risk in a drawdown arrangement you can do things like buying gilts that have maturity dates every year for as long as your money allows. the maturing gilts plus the income from the unmatured ones combine to provide the income. The maturity values are guaranteed by the government so your income is also guaranteed at the outset. The income levels won't be great compared to other options or a mixture but it's doable.

dm999

Thanks jamesd, that's useful information and certainly something that we'll consider looking at in the future. Much appreciate your comments.