Regret taking out annuity

chucknorris

MartinlewisforTaoiseach wrote: »

Hi all. I took out an annuity with L&G with my pension last December. Sick now because it is such a small rip off amount. Anyone know how I can cancel it please?

You are not alone:


https://www.youtube.com/watch?v=1YU7EhvfwwU

atush

SallyG wrote: »

Because the alternative is pension roulette income drawdown - a state of permanent insecurity - a form of torture probably recognised by Amnesty International.
Constantly being warned that you must keep an eye on your investments but ignorant of how to do that and what action to take and when and unable trust anyone's advice - and anyway no-one you can sue will tell you how to invest.

So I guess you aren't in favor of the new pension rules then lol.

kidmugsy

Why did you buy an annuity?

mania112

SallyG wrote: »

Because the alternative is pension roulette income drawdown - a state of permanent insecurity - a form of torture probably recognised by Amnesty International.
Constantly being warned that you must keep an eye on your investments but ignorant of how to do that and what action to take and when and unable trust anyone's advice - and anyway no-one you can sue will tell you how to invest.

You've clearly never played roulette!

The odds in drawdown are much [STRIKE]worse[/STRIKE] better.

Look - those who have bought an Annuity (in the current climate) have surely only done so because they want the security of a known income for life?

Nothing has changed. Unless you have a medical enhancement, Drawdown income pays better income and has improved death benefits. You would struggle to find a diverse portfolio that has fallen since 2008.

mania112

Speaking of the Budget - it's also confusing why the media are promoting this as 'Annuity is no longer the only option'

bigadaj

mania112 wrote: »

Speaking of the Budget - it's also confusing why the media are promoting this as 'Annuity is no longer the only option'

Not confusing, just lazy journalism, and there are a lot of lazy journalists !

atush

Indeed there are many.

but given I am an educated individual I keep reading newspapers any way lol.

dunstonh

Both 3 -5 years ago, the media was running articles of people losing so much money on drawdown. Some even suggested they were mis-sold and should have bought annuities. Now you have the media pushing drawdown and not annuities. You need to be careful of agendas in the media.

Annuity will remain suitable for people that need a guaranteed income in retirement. We dont know what regulatory changes are going to occur on the advice side but currently the regulator and ombudsman expect an annuity to be used where the person cannot afford (capacity for loss) and/or does not have the risk profile and/or does not have the understanding of the risks to utilise an unsecure option.

The regulator and ombudsman is now at odds with the Government. The Govt believes people are responsible and can make their own decisions and decide how to spend their money. The FOS and FCA are not.

And as mentioned previously, with annuities getting back to 7% at 65 now for relatively minor enhanced terms, that is still a very attractive option for someone who wants a guaranteed income for life. They will still continue. Just not on small pots or people with other secure income. or where advanced financial planning is being done by those using the pension as a tax wrapper rather than a product (although that has been possible for some years now)

kidmugsy

Should I invest in the annuity companies in hopes that antibiotic-resistant bacteria wipe out lots of the annuitants? Or should I spend my capital in case they wipe out me?