Pension annuity

plumbers

Hi

I have a pension that was taken out in 1987 and is a section 226 personal retirement account. My question is does the policy have a guaranteed annuity rate. In the policy documents it states that appropriate immediate annuity rate used in this quotation will apply at the pension age.

If any one can help it will be most appreciated

Many thanks

plumbers

mania112

S226 (more commonly known as a Retirement Annuity Contract) will quite often contain Guaranteed Annuity Rates.

This, of course, is especially valuable now as we're experience low Annuity rates.

Only way to be sure is to either speak to an IFA, or simply call the provider.

atush

or even look at your previous paperwork.

Do get back when you know.

plumbers

Hi

Have spoken to provider and they are not much help I was hoping someone might know what ; The appropriate immediate annuity rate used in this quotation shall apply at pension age ; means. I dont really want to go to an IFA if possible.

Thanks in advance for any suggestions.

plumbers

dunstonh

Have spoken to provider and they are not much help I was hoping someone might know what ; The appropriate immediate annuity rate used in this quotation shall apply at pension age ; means. I dont really want to go to an IFA if possible.

You either ask the provider or get an IFA to do it for you. No-one here can answer your question as we dont have product details.

GhIFA

plumbers wrote: »

Hi

Have spoken to provider and they are not much help I was hoping someone might know what ; The appropriate immediate annuity rate used in this quotation shall apply at pension age ; means. I dont really want to go to an IFA if possible.

Thanks in advance for any suggestions.

plumbers

Rather than ask them specifically what this phrase means, just ask if there are Guaranteed Annuity Rates, or any other Guarantees that apply. If the person you speak to can't answer, then you need to escalate to someone more senior who can.

We can't tell you, we don't know any of the details of your plan.

xylophone

appropriate immediate annuity rate used in this quotation will apply at the pension age.

Is there an amount or rate actually set out in the quotation?

plumbers

Hi

Thanks for replying

In the quotation it says that if the fund value for instance is £144,481 it will provide a pension of £17,022 or a tax free lump sum of £40,000 and a pension of 12,309. It gives other figures for differing fund values but they are all about 11.8% of the fund value.

Thank you in advance if you can throw any light on this.

bigadaj

That's your answer so guarantee is valuable, your probably getting three times the open market rate so don't give it up. The lump sum conversion or commutation rate is about the same so assuming all things being equal take the pension without a lump sum.

GhIFA

Double check with the provider. Also, the assumption has been made that you are taking this plan at the age stated at the outset. If you are not (taking it early for example) be VERY careful - any guarantee may only apply at the selected retirement age.

kidmugsy

It's quite possible that the guaranteed annuity rate applies only to one sort of annuity. For example it may apply only to a single life annuity. Suppose, for instance, you want an annuity with an attached widow's annuity. Then a good idea can be to take the annuity that's on offer (because the rate is so good) and then spend some of the extra income on life insurance to provide for your widow.