Buying an annuity, Crystallised or Uncrystallised

Seems unlikely, but you never know what the future holds.

Life expectancy rates have stabilised. Who is to say rates will start to come down. There are more medicines and drugs around, but people are getting fatter and there will be more complications than before.

IF annuity rates did start to rise in future, would those in drawdown be able to buy these if their funds were crystallised or uncrystallised. Thanks

Comments

  • macca1974
    macca1974 Posts: 218 Forumite
    If your money is still in a pension (drawdown or otherwise) and you are over 55, you always have the option to buy an annuity if you want to.
  • GSP
    GSP Posts: 894 Forumite
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    Thanks macca. So it does not matter if funds are crystallised or uncrystallised? Thanks
  • Malthusian
    Malthusian Posts: 11,055 Forumite
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    GSP wrote: »
    Life expectancy rates have stabilised.

    Nope. They are still going up, but for certain cohorts they are going up less quickly than the Government actuaries thought they would .
    There are more medicines and drugs around, but people are getting fatter and there will be more complications than before.

    In the same way that this new-fangled penicillin might reduce life expectancy because people become more careless and promiscuous and get more venereal diseases. People only die of obesity because they haven't died earlier of malnutrition. Life expectancy isn't going down unless there is a nuclear holocaust, that ship has sailed

    Annuity rates may well go up in the future but it will be because of higher gilt yields (and maybe better underwriting), not life expectancy.
    IF annuity rates did start to rise in future, would those in drawdown be able to buy these if their funds were crystallised or uncrystallised. Thanks

    As others have said you can buy an annuity at any time, whether with crystallised or uncrystallised funds. The only difference is that you obviously can't take tax free cash the second time round (and for those with very big pension funds, the lifetime allowance calculation is different).
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Depending on your age. Flat rate annuities aren't that bad value even in the current market.
  • GSP
    GSP Posts: 894 Forumite
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    Thanks Malthusian and Thrugelmir.
  • System
    System Posts: 178,311 Community Admin
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    You can buy an annuity at any age with any money. It's an insurance, not a pension product, but has traditionally been used in conjunction with pensions.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
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