Decision time for annuity

[Deleted User]

jamesd wrote: »

Given the numbers the annual option looks best. You can probably live on 0% credit cards or other borrowing or savings for long enough to make the year of delay acceptable.

Thank you James for your reply. Yes - I'd agree with you that the annual option appears to be the better one and I'm inclined to lean towards it. Having said that, there is only about £100 pa difference between them - not a significant amount. However, there is also the risk with the annual option that it may not pay anything in the year I die, although when I asked the provider whether they will pay pro-rata in the final year, they said yes - but I will want this agreement in writing b4 I accept the annual annuity. The worst case scenario is of course dying in the 12th month of the annual cycle. At least with the monthly option I would have received 11 annuity payments. I know this won't make any difference to me personally (after I'm gone), but as we all need to be money savvies, I would not feel I'd be making myself any favours or indeed my dependants, if I overlook this fact. I need to do some more thinking/discussing with an IFA b4 making a final decision. I have about 5 weeks left to let the provider know.

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If 9.25% minus 8.658% = £100 then the pot is £16,892

For £100 you may as well have the money monthly.