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Is it now the time to take my annuity?
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hullenedgers
Posts: 5 Forumite
I have just retired at 60 and have 3 funds totalling over £300,000 none of these are now being contributed to . The main one a Aviva Cash Plus replacement policy worth around £230000 which may well have guarantees attached, £60000 in an Aviva stakeholder and almost £40000 in an old Guardian scheme.
I have been speaking to a financial advising company (Gateway) who are looking into annuity payments with Partnership Assurance who I have never heard of!
Annuity rates seem very poor and I don`t have to take my annuity immediately and cannot seem to get accurate information about the Cash Plus Plan from either Aviva or Gateway who have been speaking to them on my behalf.
My natural thoughts would be to hold off and eventually try to get a good deal with everything with Aviva who seem to be up with the best on annuity rates.
With only one chance to get a pension I am scared of not getting the best deal.
Any thoughts greatly appreciated!
I have been speaking to a financial advising company (Gateway) who are looking into annuity payments with Partnership Assurance who I have never heard of!
Annuity rates seem very poor and I don`t have to take my annuity immediately and cannot seem to get accurate information about the Cash Plus Plan from either Aviva or Gateway who have been speaking to them on my behalf.
My natural thoughts would be to hold off and eventually try to get a good deal with everything with Aviva who seem to be up with the best on annuity rates.
With only one chance to get a pension I am scared of not getting the best deal.
Any thoughts greatly appreciated!
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Comments
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Do you have health issues? I only ask as this may well indicate why the adviser is suggesting Partnership - they specialise in enhanced annuities, which can give a better rate than the open market.
As to whether now is the right time to annuitise - well, it will depend largely on your circumstances, and I will assume that this has been considered by the advisers you are speaking to.I am an IFA. Any comments made on this forum are provided for information only and should not be construed as advice. Should you need advice on a specific area then please consult a local IFA.0 -
who are looking into annuity payments with Partnership Assurance who I have never heard of!
Partnership were the first to offer annuities based on health conditions and they are the biggest. chances are you havent heard of many of the main annuity providers as you are unlikely to have purchased an annuity before. It doesnt make them any less than names that you have heard of.Annuity rates seem very poor and I don`t have to take my annuity immediately and cannot seem to get accurate information about the Cash Plus Plan from either Aviva or Gateway who have been speaking to them on my behalf.
Are you actually getting advice or just using them to facilitate figures? I have come across these cash plus plans before and there is nothing there that any IFA should have a problem understanding or dealing with. However, an administration service rather than adviser may well do as they can be non-standard with automatic transitional relief.
Annuity rates have increased more times this year already than the number of increases over the whole of last year. Indeed, gender neutral rates are already higher than than male rates prior to the changeover in December. Historically they are low but they are not at the lowest point. They could go lower in future. They could go higher. You are not likely to see 2008 levels in the near future. However, predicting these things is near impossible. Plus, you have to factor in the cost of delay (i.e. not getting the income for x months versus the increase in annuity rate and finding where the breakeven point is).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.0 -
hullenedgers wrote: »I have just retired at 60 and have 3 funds totalling over £300,000 ...
With only one chance to get a pension I am scared of not getting the best deal.
You needn't take just one annuity. There's nothing to stop you taking (say) a level annuity with one fund, a with-profits annuity with a second fund, and putting the third into income drawdown. (The latter could be transferred into an annuity later, if you wanted.)
Or transfer the lot into one or more SIPPs, and do a phased drawdown so that each year for five years (say) you cash in one fifth of the fund(s) so that that £60k (approx) gives you £15k of tax-free lump sum and the remaining £45k either buys you an annuity of your choice, or is invested to provide "income withdrawal".Free the dunston one next time too.0 -
hullenedgers wrote: »I have just retired at 60 and have 3 funds totalling over £300,000 none of these are now being contributed to . The main one a Aviva Cash Plus replacement policy worth around £230000 which may well have guarantees attached, £60000 in an Aviva stakeholder and almost £40000 in an old Guardian scheme.
I have been speaking to a financial advising company (Gateway) who are looking into annuity payments with Partnership Assurance who I have never heard of!
Annuity rates seem very poor and I don`t have to take my annuity immediately and cannot seem to get accurate information about the Cash Plus Plan from either Aviva or Gateway who have been speaking to them on my behalf.
My natural thoughts would be to hold off and eventually try to get a good deal with everything with Aviva who seem to be up with the best on annuity rates.
With only one chance to get a pension I am scared of not getting the best deal.
Any thoughts greatly appreciated!
Thought I would chip in it might be of use to you.
Having turned my pension pot into an annuity on the 21st December last year just before the rule change. I took the annuity offered by Partnership with it offering £69.48 per annum more than the second highest, Aviva which beat Just Retirement by £1.80 It all adds up over a lifetime, all relevant to what you were talking about I think, but you’re pension pot is a lot bigger than mine was so I would of thought it there would be a bigger gap.
The second point I would like to make is I watch using the comparison websites as a guide only (but they are about right) to see if the annuity providers are paying more or less after the rule change, comparing the best then and the best now they have dropped the yearly payout by £92.64 but you’re pot is a lot bigger, it all adds up.
Bare in mind your pension pot might be worth more now due to the rise of the FTSE since December. Taking that into consideration when I crunch my numbers the payout is about the same as I get now.
One last point I have found is if you get a quote say of five providers at once, the top provider this time might not be the highest if you ask for another quote in a months time.
Food for thought. Watch out there are Sharks about.
Just Landed0
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