Annuity cash in

dunstonh

I'm not sure if this will be seen but as an update the product is a Fixed Term Annuity with Just Retirement

Yes, this is a specific type of annuity that is different to the conventional lifetime annuity that most of us thought you were referring to at the start.

At the end of the term, there will be the ability to buy another annuity (or type of annuity) or drawdown with the remaining part of the fund.

s5cyh

Thanks for replying - my main question is can we cash it in in. April or will we have to wait till 2017 when my husband turns 65

Thanks for your time

dunstonh

my main question is can we cash it in in.

No. You get options at the end of the fixed term annuity period.

mgdavid

s5cyh wrote: »

Thanks everyone - no wonder us mere mortals have no clue when it comes to pensions etc. I will get my paperwork out as requested and get better/ more specific information and ask again

I often come across things I don't understand or know about; however all I do is google the word, and read - try this link:
http://www.which.co.uk/money/retirement/guides/annuities-explained/what-is-an-annuity-video-guide/

jamesd

A fixed term annuity pays out for a fixed term. Unless there is a cancellation clause in the contract you can't simply stop it now, instead you have to wait until the end of the term. Your husband's age doesn't matter, what matters is the term of the annuity - when it ends.

It appears that what you have is the type of capped income drawdown product with fixed term annuity providing the income and an guaranteed capital value in the pension pot at the end of the term. So once the annuity has reached the end of the term you'd have complete flexibility with what to do with that guaranteed maturity amount.

If at the time you purchased the annuity product you chose to buy the "Plan Protection" option you have additional options besides just waiting, since you can use their "conversion" feature. One catch is that the conversion might give you a lower value than waiting, so it could very seriously harm your finances even if it's available to you.

So before we can comment much with any real idea of your options we really need to know:

1. is it the product that I linked to?
2. when does the term end?
3. did you by the plan protection feature to give you access to the conversion option?
4. what type of value was that 34k? Was it an estimated maturity value at the end of the term (seems most likely) or a pension pot value if you used the conversion option?
5. what changes of circumstances prompt you to want to change. This is because we might find better options that can achieve your goals with lower cost/loss.
6. It would also be useful to know roughly what the total value of the three pension pots was, what the income level from the term annuity is and what the maturity date is so we can do some checking of our assumptions to make sure that the numbers all seem reasonable.

It's worth knowing that you have a very unusual product so you'll probably need to point to a description page when asking for assistance, else people can be expected to get the wrong idea, just as happened here. Unusual doesn't mean bad, it's quite an interesting product. Just means that it's a trap for those trying to answer questions until they know just what it is that you have.

bmm78

Like jamesd says your options will be dependent on whether the plan includes Plan Protection with a conversion option. If so, you then need to establish whether the conversion option represents good value, and if all things considered it is the right thing to do.

They are pretty much standard on Fixed Term Annuities now, but tended to be an optional feature a few years ago.

The product illustration (or quotation) from Just Retirement should have a "Plan Benefits" section or similar, which will have the option "Plan Protection" and details of whether or not it is included in the plan. The suitability report from the adviser who set it up should also explain this option and if it was/wasn't included.

Any information you can provide from the paperwork will help - someone here should be able to make sense of it even if it means nothing to you