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Trustee Proposed Section 32 Buyout Plan

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Comments

  • kaswan
    kaswan Posts: 5 Forumite
    edited 10 April 2013 at 11:01PM
    Update:
    Took your advice and consulted an IFA. We have had an initial free consultation and he is now seeking the required information about all our pension pots. He had suggested income drawdown which were keen on but the defined contribution from my husband's last employer has to be an annuity. We are now thinking about buying a £75,000 annuity and putting the remainder, about £45,000 in drawdown. If we did this we would not take an income from drawdown at this stage.

    What do you think would be reasonable fees to pay an IFA for this? We had been quoted between 2-4% when we discussed drawdown. I assume a straightforward annuity would be less than this. Is that correct?
  • dunstonh
    dunstonh Posts: 121,388 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Drawdown is a higher risk transaction and a bit more work than an annuity. However, 2-4% seems fine on a small pot.
    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.
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