Selling an annuity

Rebl

Hi,

I have an annuity with Guardian Financial Services and another very small one with Scottish Widows.

I took the 25% lump sum from both in 2010 when I was 60.

When can I sell the remaining annuities?

Some information online says 2016 other 2017.

What is the best way to go about it?

Any help/advice would be gratefully received!
Kind regards,

George

robin61

I don' t think there are any details as to how this would all work yet.

dunstonh

When can I sell the remaining annuities?

2017 is the expected date. However, there are still a number of concerns that need to be addressed. One seems to be whether there will be a market for it and how the market will be regulated.

What is the best way to go about it?

We won't know until things are decided. As most people aiming to sell an annuity will be worse off because of that decision, they are considering whether advice will be mandatory or not. Taxation is not set yet either I believe.

There is a misconception that people who think they can sell their annuity, will get their fund back (minus what has been paid out to date). it will not be like that. Expectation is that they will look at your health situation and other underwriting details to consider your life expectancy. They will then look at your annual payment and then factor in their costs and a profit margin. So, very roughly, if you have £1000 a year annuity income and a life expectancy of 7 years, that would be £7000. However, by the time they deduct their margin and costs, they may offer you £4000 before tax. (Even if 5 years earlier, the pension fund that was used to buy that annuity was worth say £20,000).

LXdaddy

dunstonh wrote: »

There is a misconception that people who think they can sell their annuity, will get their fund back (minus what has been paid out to date). it will not be like that. Expectation is that they will look at your health situation and other underwriting details to consider your life expectancy. They will then look at your annual payment and then factor in their costs and a profit margin. So, very roughly, if you have £1000 a year annuity income and a life expectancy of 7 years, that would be £7000. However, by the time they deduct their margin and costs, they may offer you £4000 before tax. (Even if 5 years earlier, the pension fund that was used to buy that annuity was worth say £20,000).

Exactly.


This is another case of our chancellor announcing something that sounds attractive but will turn out to be a massive disappointment to virtually all.


It is almost bound to be a bad idea to sell your annuity so it almost certainly will need some "adult supervision" which everyone will complain about

AnotherJoe

This smacks of desperation. Perhaps go onto the debt free wannabee forum and post a Statement of Affairs.

Or if you have a specific need for the money maybe there's a better way to get it. This is certainly likely to be a very poor way even if its available which it may not be at all, and may not be for you.

System

I suppose you could always "sell" it privately, just by signing a binding agreement with a man in the pub to pay him £X pa for the rest of your life, and in return he would give a lump sum of £Y.

It would have the additional bonus that from then on you would have a personal minder, as he followed you about everywhere making sure you didn't accidentally step under a bus.