MSE News: Annuities code to protect retirees begins

"A new code of conduct for annuity providers has been launched today ..."
Read the full story:

Annuities code to protect retirees begins

OfficialStamp.gif

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

Comments

  • stinktankcynic
    stinktankcynic Forumite Posts: 151 Forumite
    The only code we need, is to remove the annuity element altogether, the pot is paid out to you over a period of 10-15 years. If you die earlier the balance is paid.
    I see no real reason to have annuities, an outdated money generator for the insurance industry. The employer contribution is the only carrot to stop people avoiding money purchase schemes. Also, why on earth can you not have all the cash, especially if you have a full state pension and are above means tests?
    The reason, the insurance industry loses, means testing is coming and the government don't want you to be rich.
  • GhIFA
    GhIFA Forumite Posts: 619 Forumite
    The only code we need, is to remove the annuity element altogether, the pot is paid out to you over a period of 10-15 years. If you die earlier the balance is paid.
    I see no real reason to have annuities, an outdated money generator for the insurance industry. The employer contribution is the only carrot to stop people avoiding money purchase schemes. Also, why on earth can you not have all the cash, especially if you have a full state pension and are above means tests?
    The reason, the insurance industry loses, means testing is coming and the government don't want you to be rich.

    And what happens if you live for more than 10-15 years? Who supports you then?

    Value protected annuities allow a lump sum to be paid after your death.

    Why can you not have all the cash? You can if you have secure pension income of more than £20k pa. But you seem to be advocating the idea that anyone can take all their fund - again, who supports those who don't have any discipline and drain the fund and spend it at the earliest opportunity with no other income?

    Annuities aren't perfect, but they are a lot better than the system you are suggesting.
    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.
  • SallyG
    SallyG Forumite Posts: 850 Forumite
    "Value protected annuities allow a lump sum to be paid after your death."
    Does that lump sum payout still depend on your dying before age 75 ....and is it taxed at 55%?
  • GhIFA
    GhIFA Forumite Posts: 619 Forumite
    SallyG wrote: »
    "Value protected annuities allow a lump sum to be paid after your death."
    Does that lump sum payout still depend on your dying before age 75 ....and is it taxed at 55%?

    Yes, it is taxed at 55%
    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.
  • sandsy
    sandsy Forumite Posts: 1,692
    Part of the Furniture 1,000 Posts Name Dropper
    Forumite
    an outdated money generator for the insurance industry.
    the insurance industry loses.

    So which one is it then? Nowt like hedging your bets, hey?! Much like an annuity really :)
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 338.7K Banking & Borrowing
  • 248.6K Reduce Debt & Boost Income
  • 447.5K Spending & Discounts
  • 230.6K Work, Benefits & Business
  • 600.7K Mortgages, Homes & Bills
  • 171K Life & Family
  • 243.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards