Mother took out an annuity a few weeks before George Osborne revealed the new changes

jonkrav

Hi my mother took out an annuity with her pension a few weeks ago as she wanted access to the small lump some of money they offer when you do this and felt she didn't really have any other options and therefore the rest of the money is now tied up.

We then saw the news today about George Osborne allowing pensioners to draw from their pension pots which has left my mother feeling quite sick! As ideally she would want access to all of her money she has saved over the years but feels shes made a huge mistake now taking the annuity.

Is there anything she can do?

claretmatt

Cooling off period?

Drp8713

jonkrav wrote: »

Hi my mother took out an annuity with her pension a few weeks ago as she wanted access to the small lump some of money they offer when you do this and felt she didn't really have any other options and therefore the rest of the money is now tied up.

We then saw the news today about George Osborne allowing pensioners to draw from their pension pots which has left my mother feeling quite sick! As ideally she would want access to all of her money she has saved over the years but feels shes made a huge mistake now taking the annuity.

Is there anything she can do?

What was she planning to live on if she did that?

OldBeanz

As post 2, check all the paperwork today and see if there is any cooling off period.

System

Drp8713 wrote: »

What was she planning to live on if she did that?

The state?

SailorSam

You're going to have to dig out her paperwork and read the small print,

dunstonh

We then saw the news today about George Osborne allowing pensioners to draw from their pension pots which has left my mother feeling quite sick!

If she doesnt need the money until next year then why did she draw it this year?

As ideally she would want access to all of her money she has saved over the years but feels shes made a huge mistake now taking the annuity.

Annuities are not going away and they will still be the best option for many people. If you can get around 7% on a guaranteed income for life but just 2.5% in the bank, then the annuity is going to be more attractive if you need income provision.

mudman

Wife was 65 last month, decided to purchase an annuity with "Just Retirement" on advice from "Age Partnership". Tax free sum £7768 Annuity purchase price £23305 Annual annuity £1499. So far so good.
Only income wife has is £4700 state pension. Spoke to Just retirement this morning and although the first annual payment made on 14th March and 25% from Standard Life paid on 10 March (both untouched) there is a "cooling Off" period until next Wednesday 26th.
Question - if she was able to cancel, what methods of drawdown over the next years are open to her - remembering she only uses £4700 of her personal tax entitlement - would she still have to have the new £12000 annual assured income before she could consider "flexible drawdown" - if not is she committed to an annuity. The annual annuity of £1499 would not be greatly missed in our long term finance. Many Thanks

Truthseeker_2

jonkrav wrote: »

Hi my mother took out an annuity with her pension a few weeks ago as she wanted access to the small lump some of money they offer when you do this and felt she didn't really have any other options and therefore the rest of the money is now tied up.

We then saw the news today about George Osborne allowing pensioners to draw from their pension pots which has left my mother feeling quite sick! As ideally she would want access to all of her money she has saved over the years but feels shes made a huge mistake now taking the annuity.

Is there anything she can do?

Tough luck. But I wouldn't get too despondent - the government isn't giving away anything, merely tinkering with the system.

greenglide

mudman wrote: »

Question - if she was able to cancel, what methods of drawdown over the next years are open to her - remembering she only uses £4700 of her personal tax entitlement - would she still have to have the new £12000 annual assured income before she could consider "flexible drawdown" - if not is she committed to an annuity. The annual annuity of £1499 would not be greatly missed in our long term finance. Many Thanks

Since her assured income is less than £12,000 nothing has changed for your wife.

Since an annuity was fine a few days ago, why isnt it now? You always had the option of capped drawdown anyway, the budget hasnt changed that except that the cap has been raised.

mania112

30 day cooling off period - but the ceding scheme don't need to accept the return of funds