Taking TFLS, delaying annuity purchase.

kidmugsy

http://citywire.co.uk/new-model-adviser/govt-extends-annuity-purchase-rule-to-18-months/a745656?ref=new-model-adviser-todays-news-list

Will all providers be required to allow an 18 month delay, or are they only being permitted to allow an 18 month delay?

dunstonh

Very few providers actually allowed that option on their plans. I dont know but I suspect that there will be no change there.

zagfles

Surely they can decide to go into drawdown instead. Or if the scheme they're in doesn't offer it, transfer to one that does.

tony4147

Can someone explain, is the above saying that when a person takes their 25% TFLS the rest of the pension (75%) HAS to be used to purchase an annuity within a certain timeframe?

I thouught that the TFLS could be taken any time from 55 and the rest of the pension be used for an annuity or drawdown or flexible drawdown.

dunstonh

Can someone explain, is the above saying that when a person takes their 25% TFLS the rest of the pension (75%) HAS to be used to purchase an annuity within a certain timeframe?

Whilst the rules allow for a time delay between the two to exist if the provider wishes to do so, they are not required to offer it.

I thouught that the TFLS could be taken any time from 55 and the rest of the pension be used for an annuity or drawdown or flexible drawdown.

It can. That is unchanged. This thread is about the rule allowing a delay between the two within the contract (mainly aimed at those that do not offer drawdown)

tony4147

My pensions are with Standard Life (paid up) and Scottish Widows, am I correct that both offer drawdown?

dunstonh

tony4147 wrote: »

My pensions are with Standard Life (paid up) and Scottish Widows, am I correct that both offer drawdown?

Both of them offer plans which can do drawdown. However, most of their plans do not. In those cases, a pension transfer is required and if bought direct, you would be looking at potential new charges.