Implications of 'yes' vote on Scottish Widows annuity?

Annie1960

Clifford_Pope wrote: »

If the UK had joined the Euro and the Pound didn't exist any more, would you want your annuity to be paid in Euros or a currency that didn't exist?

This is a meaningless hypothetical question. We did not join the euro.

System

Annie1960 wrote: »

This is a meaningless hypothetical question. We did not join the euro.

No it isn't. You responded to the statement that if an annuity was promised designated in pounds it would have to be paid in pounds, not some other currency.
That obviously can't be true, because if we had joined the Euro, all annuities would have been compulsorily switched to Euros.
You couldn't unilateraly have insisted on sticking with pounds.

Annie1960

Clifford_Pope wrote: »

No it isn't. You responded to the statement that if an annuity was promised designated in pounds it would have to be paid in pounds, not some other currency.
That obviously can't be true, because if we had joined the Euro, all annuities would have been compulsorily switched to Euros.
You couldn't unilateraly have insisted on sticking with pounds.

Please can you stop hijacking my thread with your unhelpful responses.

Thrugelmir

Annie1960 wrote: »

Ultimately it's about confidence in the institution.

NR would have required bailing out. £2 billion of withdrawls were made in the panic.

Yet the BOE had to step in with a £24 billion loan. With another £7 billion of guarantees on top.

System

Annie1960 wrote: »

Please can you stop hijacking my thread with your unhelpful responses.

You asked:

"But they might start paying me in a different currency (or would this not happen?)"

In your subsequent post, you asked whether there was any evidence for someone's statement that they would not be obliged to continue paying an annuity designated in sterling.

Do you want answers to those questions?

If yes, then consider the fact that if a country changes its currency, all transactions, including annuities, become lawfully re-designated in the new currency. I gave the example of when EU countries dropped their own currencies and signed up to the Euro.

mania112

Clifford_Pope wrote: »

No it isn't. You responded to the statement that if an annuity was promised designated in pounds it would have to be paid in pounds, not some other currency.
That obviously can't be true, because if we had joined the Euro, all annuities would have been compulsorily switched to Euros.
You couldn't unilateraly have insisted on sticking with pounds.

The terminology of these contracts is such that it probably states 'the currency of which your country is prescribed to' or something like that.

Annie1960

mania112 wrote: »

The terminology of these contracts is such that it probably states 'the currency of which your country is prescribed to' or something like that.

Thanks for this helpful suggestion, I will try again to talk to SW about what the contract says. However, I'm not optimistic I'll get an answer as they could not tell my broker.

Annie1960

CLAPTON wrote: »

yes of course to the person receiving the pension

but I can't see how an annuity provider with their own income in pounds, would wish to take the exchange rate risk by guaranteeing a payment in a foreign currency

You make it sound as though this is just some random decision that SW could take. I'm not really interested in whether you can see how SW would do this or not. I'm looking for concrete facts, not vague opinion pulled arbitrarily out of thin air.

If you have any evidence to support your comment, please can you provide it? If not, please don't muddy the issue by guessing randomly.

Thrugelmir

Annie1960 wrote: »

I'm looking for concrete facts, not vague opinion pulled arbitrarily out of thin air.

Suggest to wait until after the vote. No one can offer a definative answer without the full facts.

Annie1960

Thrugelmir wrote: »

Suggest to wait until after the vote. No one can offer a definative answer without the full facts.

This suggestion is not helpful, as I am taking the AVC before the vote. A number of people on this thread have raised helpful points. If you do not have anything helpful or concrete to say, please do not post on my thread. It is very annoying.