Post Office Pension - Refusal of lump sum.

jamesd

Just don't expect the price for the annuity to seem good. It's likely that the buying price will be around 30-50% less than the total value of the payments to average life expectancy would be. That can pay if you were to do something like using the money to defer claiming your state pension, which probably pays more than the annuity would.

If you were to sell the annuity you would be treated as still having its income under the deprivation of income rules. this makes selling it to defer the state pension, where that provides a higher income, one of the few sensible things to do for those on means tested benefits. At least to the extend that it reduces the dependence on means tested benefits. It might make a person worse off overall if they then cease to be eligible for lots of other benefits as well.

If you're no longer eligible for means tested benefits once your state pension starts, that would be the time when you can finally see an improved situation as a result of these pensions.

bootledylan

Thanks and any chance you can clarify the "defer the state pension" bit?


!! Just had a quick google on this. This will not affect me until retirement age so doesn't solve my present cash problems but thanks for the info