annuities v drawdown

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
6 replies 563 views
louisebeverley_15louisebeverley_15 Forumite
6 Posts
I retire in January 2015 and gave been advised that drawdown is the way to go for 160,000 pension pot but I have now heard that annuities have become safer and last for life which better
Confused

Replies

  • mgdavidmgdavid Forumite
    6.7K Posts
    Part of the Furniture 1,000 Posts Name Dropper
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    Can you please not raise two identical threads, and not ask the same question by hijacking other people's threads? This is the 4th time I've read this in a few minutes!
    The questions that get the best answers are the questions that give most detail....
  • sorry new to this site
  • MEM62MEM62 Forumite
    3.5K Posts
    Eighth Anniversary 1,000 Posts Name Dropper
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    The solution for you depends on your specific circumstances.

    Other income sources?
    Health / life expectancy?
    Married?
    Single?
    Home owner?
    Still paying a mortgage or mortgage free?
    Renting?
    Estate planning considerations?

    You need to take professional advice in order to be in a position to make choices.
  • I retire in January 2015 and gave been advised that drawdown is the way to go for 160,000 pension pot
    Confused
    Who advised you about drawdown?

    We know very little about your circumstances to even comment. Give us a little background of yourself and what other provisions you have.
    but I have now heard that annuities have become safer and last for life which better
    This has not changed. Annuities is an insurance policy which is why it's the "safer" option and guarantees income for life.
    Stephen Covey once said that "when you teach once, you learn twice". That is the primary reason for my participation on the forums as an IFA.

    Although I strive to provide accurate information in my posts, there may be the odd time when I fail. Yes I know it's hard to believe but even Your Hero can make mistakes. Apologies in advance.
  • my fa advised on drawdown, i retire in jan 2015 with a pot of 180,000 aprox
    married, home owner, no mortgage, health is good, my wife is 60 and her health is v good,
  • atushatush Forumite
    18.6K Posts
    Tenth Anniversary 10,000 Posts
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    you mention an FA. Is he an IFA or a restricted/tied agent? Does he work for your bank?

    Basically, if you dont give us more information, we can't possibly comment. For instance, apart from the above, what sort of pension does your OH have? Is she still working/for how long? Do you have other savings and investments therefore dont need more than your 25% TFLS? Is all your money in cash, or do you have S&S isas? Will you both get a full state pension? Any Serps/s2p? How many years will you be retired before your SP pays out?

    What rate did your FA give you for an annuity on 75% of your pot? Is it enough for you to live on?
This discussion has been closed.
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