Buying an annuity, Crystallised or Uncrystallised

GSP

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

macca1974

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

Thanks macca. So it does not matter if funds are crystallised or uncrystallised? Thanks

Malthusian

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

Depending on your age. Flat rate annuities aren't that bad value even in the current market.

GSP

Thanks Malthusian and Thrugelmir.

System

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.