Annuity

tenorhorn

I have recently taken voluntary redundancy and because of my age was able to draw my local government pension down. Many years ago I took out an FSAVC and I have a statement. I have been told that I do not need to draw it down yet and have been told that I can take a small lump sum from it and buy an annuity with the rest. My FSAVC was with my then employer HSBC. I have no idea what to do now. I want to take the small lump sum and invest the rest which I know I need an annuity for but who to chose and what to do for the best is a nightmare. The company the bank have put me in touch with want a fee of at least £250, which doesnt seem a lot but there is the either or option of course of a fee or a percentage. I do not know what to do now as I am sure I can get a better deal if I can work out how to get better advice without having to pay an extortionate amount to get it. My pot before taking the lump sum is approx £24,000. Any advice would be welcome. For added information, I took the larger lump sum on my LGPS scheme (rightly or wrongly, I wanted the funds so knew the exchange rate was not good but accepted that on the chin) and I intend to continue working but only part time, but this may or may not happen (enjoying the time off at the moment). To replace the sum I have given up on my LGPS scheme I want to cash in my pension with HSBC so that I am still at the level I was before I took the lump sum. I am so out of my depth on this one and I class myself as fairly intelligent and savvy but not in this area. I would appreciate help and advice. Would welcome some expertise on the FSAVC from you all.

jem16

tenorhorn wrote: »

I do not know what to do now as I am sure I can get a better deal if I can work out how to get better advice without having to pay an extortionate amount to get it.

The us of an IFA to purchase an annuity is a no-brainer option. The better deals are through IFAs only. If you don't use an IFA you will still pay exactly the same as the provider simply keeps the money themselves.

RosieBee_2

Hi,

yes an IFA is a definitely a very good option, but this doesnt mean you cannot research on your own and provide yourself with a good idea as to the type of income you can purchase with your pension pot.

looking on the internet i have found a few sites offering calculators which should provide u with an idea of what your £24,000 pension pot will be able to purchase.

i would say use more than one to get a fair idea. so heres the first, heres the second, heres the third and heres the fourth

annuity rates are pretty rough at the minute, so to get the most income looking around is definitely the best option.



Rosie Bee

xylophone

http://www.moneyadviceservice.org.uk/_assets/downloads/pdfs/your_money/a5_guides/your_retirement_options.pdf
Might be worth a read.