Pension changes after 2015.

easilyparted

I took an annuity in 2006 so it is a reasonable amount and guaranteed until 2016. Will it be possible to withdraw the lump-sum after 2015 when the rules change? If I predecease my wife I would like her to have a reasonable amount to live on.

jem16

easilyparted wrote: »

I took an annuity in 2006 so it is a reasonable amount and guaranteed until 2016. Will it be possible to withdraw the lump-sum after 2015 when the rules change? If I predecease my wife I would like her to have a reasonable amount to live on.

No it won't as you no longer have a pension. You gave up the pension when you purchased the annuity so the rule changes don't apply to you.

greenglide

easilyparted wrote: »

I took an annuity in 2006 so it is a reasonable amount and guaranteed until 2016. Will it be possible to withdraw the lump-sum after 2015 when the rules change? If I predecease my wife I would like her to have a reasonable amount to live on.

And you did purchase a joint life annuity didn't you if you wish to ensure that your wife has money if you die first?

jamesd

You spent the money when you purchased the annuity. You can't have it back.

The guarantee to 2016 means it will pay out at the full rate until then even if you die earlier than that. After that time what happens if you die depends on whether you chose to purchase a pension with spousal benefit or not. If you didn't choose that, it will stop as soon as you die. If you did choose a spousal benefit your income while you're alive will be lower and your spouse if any would get whatever pension provision you chose to buy, that can vary from 50% upwards, higher reduces the pension while you're alive more.

If you did purchase a single life pension you can do things like investing within a stocks and shares ISA or buying term life insurance to provide some capital after your death that can be used by a spouse.

Pincher

Using the whole pension pot to get an annuity in 2006, and then living eight years to collect means you are already ahead of the pack compared to those retiring in the last four years, who got appalling annuity rates. Getting spouse benefits would have cut down the payout over the eight years. Keep living, and keep laughing.

If you have children, it's better to make arrangements with them to look after the wife, since they will get your house after you both go. Or equity release, if there is no one to leave the house to any way.

easilyparted

Much as I had thought.
Fortunately the annuity is more than enough for us to live on so I have been investing the money, though ISA's are not available to me as I live in France and am taxed there.
Thanks for the advice