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Cash in existing annuities
Comments
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As I said I'd rather my estate had the money on my demise than the bankers
What makes you think bankers get your money?
If you thought that way, then why did you buy an annuity in the first place? It hasnt been necessary to buy an annuity for many years.
As mentioned, the answer is no.Could someone explain why it is possible to cash in a pension but not an annuity, whats the difference its all pension money surely.
Two different products. Pensions are what you use the in accumulation stage. ie.. building up the pot. When you get to retirement, the pension matures and the proceeds are used to buy an annuity. Annuity is what is used to provide the income in the decumulation stage. It hasnt been the only option for many years.
Annuities will still continue to exist and will still be used by many. Enhanced annuities on relatively minor health conditions are getting back towards 7% annuity rates. So, an option of getting 7% guaranteed for life income compared to 2-4% on savings or perhaps 5% on investments but with risks will appeal to some people.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
As I said I'd rather my estate had the money on my demise than the bankers (though, of course, if I live more than 10 years the advantage swings the other way).
?
At 63 average life expectancy is around 22 years for a man and more for a woman. This means that (unless you have health reasons for expecting to die sooner) you have a 50% chance of living beyond 85. That's a quarter of your life that needs to be financially supported.0 -
Very interesting and educational contributions, thanks to all ...0
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sleepless_saver wrote: »At 63 average life expectancy is around 22 years for a man and more for a woman. This means that (unless you have health reasons for expecting to die sooner) you have a 50% chance of living beyond 85. That's a quarter of your life that needs to be financially supported.
DH bought an annuity back in the early 80s from his 'golden goodbye'. Admittedly the rates were much more favourable when he bought it and he got the best rate going that day, but he has now had more out of it than originally went in, and continues to do so. He'll be 80 at the end of this year.[FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
Before I found wisdom, I became old.0 -
Thanks for that
Why would you want to?
As I said I'd rather my estate had the money on my demise than the bankers (though, of course, if I live more than 10 years the advantage swings the other way).
Anyway whether I will or won't does anyone know if it's possible ?
It's not "the bankers" who get the money, you chump; it's your fellow annuitants who outlive you.Free the dunston one next time too.0
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