How long does it take to get a private pension started?

Blue_Parrot

Short question, long answer?

My husband has had to retire for health reasons. I don't want to say why on a public forum: I'd rather just say, here, that his life expectancy is now greatly reduced. He was incredibly lucky to have survived.

His company pension pot is (it seems to me) pretty healthy, however. An IFA is coming here next week to discuss the options. These are likely to be multiple and various.

His state pension had already started and is being saved. I am still working beyond retirement age: my state pension is also being saved.

Which ever way we go with the IFA discussion (annuities, draw down, etcetera) - how long does it take for the actual money from his company pension to actually start to arrive? I'm guessing six-12 weeks?

Some help in personal financial planning on this one would be appreciated. While caring for my now disabled husband, I'm working on spreadsheets for our personal finances and the legal and financial sides of closing our small business. Thanks in advance.

AnotherJoe

Is his company pension a monthly payment he'll get, which you imply ("when will the money start to arrive") or is ita lump sum which you also imply ("a healthy pot")

If its a lump sum, then there isn't necessarily any need for it to "arrive" anywhere ,it depends what you do with it, and what you do with it and with whom, will determine how long it takes for that to happen along with tax implications, for example notwithstanding your husbands health issues, taking large percentage out may cause ultra high taxation which may make you decide to draw that process out.

Blue_Parrot

I've asked the wrong question. I should have said:

IF we go for an annuity, how long does it take to get started?

The answer according to the Hargreaves Lansdown site is, it depends on the efficiency of the pension company and annuity provider. Since Friends Life have been spectacularly inefficient so far this year, I already think that IF we go for an annuity that would be with some other firm.

My husband should easily qualify for enhanced annuity rates. If he doesn't, I can't imagine who would unless they were terminally ill.

dunstonh

IF we go for an annuity, how long does it take to get started?

Depends on the ceding scheme. Some can transfer within 3 days. Some 3 weeks. You can select monthly in advance which means you typically get the first income payment within 3-4 days of the annuity provider receiving the funds.