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Annuity Under £1000?
nilocmac
Posts: 511 Forumite
My wife recently passed away and I am in reciept of her pension fund. She was only 31 so it was not a large fund yet. She had £16000 non protected rights (which I can get in cash) and about £1000 protected rights. I have been told that you can not buy an annumity for much less than £5000. But there does not seem to be any other way to use this the protected rights money as I have been told it must be used to buy an annuity cannot be cashed in. If the other part had been less I may have been able to get the whole fund as it would have probably subject to trivality.
Any thoughts? Or is my wife's situation an annomally?
Any thoughts? Or is my wife's situation an annomally?
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Comments
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Very sorry to hear that
The provider is required to offer an annuity for the PR fund, even if no-one else is interested.Trying to keep it simple...
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Not any more they arent. That rule was abolished. I think before A day. Virgin stakeholder dont offer one and many SIPPs and some fund supermarkets dont either.
The majority of providers do though.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 -
If you have a personal pension, ask if that plan will accept a transfer.
Otherwise try asking Aegon and L&G if they will accept it. If not those two, try Scottish Equitable.
If you make the amount up to 5000 by not taking trivial commutation for all of it, L&G, Scottish Equitable and Standard Life may accept it.
If it's with Pearl, Zurich, Save & Prosper and St James's Place, ask the Pru to help. If it's with Invesco and Skandia Life ask L&G. Each should provide the same terms for this as for their own customers.
The handling of small pension pots is currently being reviewed because pots that are below the normal annuity purchase limits but above the combined trivial commutation limit are quite common. Waiting for a year might see some solution even if there isn't one now.0 -
It's with Nationwide0
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And have Nationwide told you they will not offer an annuity?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
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