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Do I have to accept this annuity

From and old job (decades ago), I have an annuity already, dated 1994. It comes from from a firm which has now closed down and the pension scheme wound up. I start to get the benefit in a year's time. Not a huge amount but welcome nonetheless
As of 1994 it is 500odd pa 5% escalation. (Clerical Medical)

Do I have any options, or should I be happy with what I have?

Thanks

Steve

Comments

  • Ask the pension provider (Clerical Medical), but generally you should be offered something called the "Open Market Option". This means that you are offered a capital sum which you can use to buy an annuity from another provider, so you can shop around.

    However, you should also check the terms of the annuity from the current provider. They might include guarantees which can't be matched by other providers.
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I agree, you need to know more about the pension to decide, esp if it has any guarantees attached.
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Is this a "retirement annuity contract" rather than a personal pension? Is it a section 32 buyout?

    Since it's from a wound up workplace scheme it's probably going to be better than anything you can get. From your description it seems more like defined benefit than RAC.
  • xylophone
    xylophone Posts: 45,426 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    What exactly is this policy? A S.32 perhaps?
  • shoi
    shoi Posts: 168 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    xylophone wrote: »
    What exactly is this policy? A S.32 perhaps?

    I've scanned the paper for a "32", and can't see one. The paper is dated 1994, I don't know if the relevant Act was in place then.

    Steve
    PS Thanks one and all for the pointers
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Sorry to say that you're going to have to ask them what it is. Hopefully whoever you get there will know enough about it to be able to tell you. :)
  • mania112
    mania112 Posts: 1,981 Forumite
    Part of the Furniture Combo Breaker
    I was about to ask what 'odd' stood for... it's late!

    But, yeah, it's not going to be very helpful here without knowing more about the pension - or at least the total value (to know if £500 inc by 5% is any good).
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