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

SallyG

http://www.ifaonline.co.uk/ifaonline/news/2335332/what-to-tell-clients-about-the-chancellor-s-radical-pension-changes/page/2

"For cases LV= receives within the next fortnight, and those already in the pipeline, it is extending its annuity quote guaranteed period for cases from 30 days to 45.
For those customers who are within their 30 day cancellation period, and for new customers buying a product with the mutual over the next month, it is extending their cancellation period to 60 days "so that they also have time to reflect where necessary"."

kidmugsy

I'm baffled at to why anyone would make an irreversible financial decision a few weeks before a budget. A few months, sure: life must go on. But a few weeks?

mudman

Thanks for the detail, especially confirmation of the "now" 12k assured income.
Kingmudsy thanks for the "chastisement" lol,
It was a case of "turned 65 let's take some money" - did you think the changes yesterday would be so ranging? Bottom line is she has a day or two to either stay with the original Annuity or attempt to pull the plug and regroup over the next few months. She is just over the new 30k trivial fund limit. Don't really understand capped drawdown - so must swot up this evening. Conversation with others stated that in the future all funds can be taken with the obvious tax loss implication - true or not? Note - my pensions give us a comfortable retirement & when I pass she will not be bad off - so this 31k even after tax would be used for home improvement and more holidays! Thanks!

bmm78

mania112 wrote: »

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

Important point, and often misunderstood. The cooling-off period relates to the purchase with the annuity provider, and is not necessarily connected to the transfer of funds away from the ceding scheme.

I imagine there will be a lot of this coming to light in the next few weeks.

kidmugsy

mudman wrote: »

did you think the changes yesterday would be so ranging?

On some other threads I did suggest that people should wait for the budget. After all, the date of the General Election has been known for years.