Annuity purchase problem!

Sarahloo_2

I am 47 and retiring due to ill health, I have been approved for my post office pension so this is all settled. However I have 2 small funds with Aviva. There total value is just a shade under £20k. Apparently I can take 25% as a lump sum but no more because I am not going to die in the next 12 months. The remainder just under £15k has to buy an annuity I believe. I understand that annuities are really bad at the moment which is rather annoying. Given that this pot is only a small amount compared to my PO pension and I could survive without it is it worth my while letting it sit with Aviva a bit longer? Pensions seem to be a bit of a lottery! Has anybody got any advice for me? Do I have any other options? Also I live outside the eu now, does that make any difference? Many thanks

Sarahloo_2

Having read a bit more I discover investment draw down, is this an alternative to an annuity and am I right in thinking it maybe a better option or me?

dunstonh

Apparently I can take 25% as a lump sum but no more because I am not going to die in the next 12 months. The remainder just under £15k has to buy an annuity I believe.

Annuity is one of the options but not the only one (although given the tiny fund value, probably the likely one)

I understand that annuities are really bad at the moment which is rather annoying.

The fact you are aged 47 is going to be the main problem. Have Aviva authorised early commencement?

Pensions seem to be a bit of a lottery!

in what way?

Also I live outside the eu now, does that make any difference?

Yes. It will limit your options as some may not transact with no UK residents.

Sezan

Well I have had to make a new acct to reply! What's that all about?

Sezan

dunstonh wrote: »

Annuity is one of the options but not the only one (although given the tiny fund value, probably the likely one)

So what are the options?


The fact you are aged 47 is going to be the main problem. Have Aviva authorised early commencement?

The main problem is that I am too ill to work. Post office pension has so would assume Aviva will too. The report they require is far less searching than the PO one and tbh given the projection on annuity I doubt I will bother to get the form filled out!

in what way?

I read on here that people who retired 6 years ago in the same circumstances as someone retiring today would be massively better off, the article was on a front page link!


Yes. It will limit your options as some may not transact with no UK residents.

Would be interested to know what my options are?

2/3 of this is from when I was contracted out of SERPS is that relevant?