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Increase in annuity payment
rorysdad
Posts: 161 Forumite
Hi,
I will probably be told to contact the pension provider - but here goes.
A friend of mine is 65 and for a year or so now has been receiving a monthly cheque which is an annuity on a pension (he took a lump sum tax free of 25% and arranged for the annuity). Every month the cheque has been for £120.
This month he has received a cheque for considerably more - £340.
Anyone have any idea why this might be?
My only thought was that the money left in the insurance pot has over the past 12 months increased in value and therefore so has the monthly payments he receives?
Probably an impossible question, just wondered if anyone had a similar experience. Will probably need to ring the pension company.
RD
I will probably be told to contact the pension provider - but here goes.
A friend of mine is 65 and for a year or so now has been receiving a monthly cheque which is an annuity on a pension (he took a lump sum tax free of 25% and arranged for the annuity). Every month the cheque has been for £120.
This month he has received a cheque for considerably more - £340.
Anyone have any idea why this might be?
My only thought was that the money left in the insurance pot has over the past 12 months increased in value and therefore so has the monthly payments he receives?
Probably an impossible question, just wondered if anyone had a similar experience. Will probably need to ring the pension company.
RD
0
Comments
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My only thought was that the money left in the insurance pot has over the past 12 months increased in value and therefore so has the monthly payments he receives?
No that is not possible. Once an annuity is bought, there is no pot anymore.
One possible reason ( other than pure mistake ) could be down to a tax rebate but without a payslip to check, the only way to know is to contact the provider.0 -
Anyone have any idea why this might be?
Change in tax code possibly. That normally comes with a letter from the annuity provider though and/or a PAYE coding from HMRC.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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