No choice other than to purchase Annuity

kantblue

Thanks for all the replies, I have finally received confirmation from both Royal London and my broker that the scheme doesn't fall into any of the categories mentioned by you guys.

I have decided to purchase the annuity, as someone has pointed out it does at least guarantee a fixed income, it is actually only a relatively small part of my total pension pot so its not a deal-breaker and the tax free lump sum helps with tax efficiency issues.

Thanks again for all of your suggestions.
kantblue

jamesd

THE annuity or just an annuity? Unless there's a guaranteed annuity rate you're likely to get more income for your money using the open market option.

Terron

kidmugsy wrote: »

Some people are enthusiastic advocates of the idea that people at about retirement age should consider holding about 50% in equities and 50% in bonds. The annuity would be like a perpetual bond, thus removing longevity risk and the risks involved in duration, calls, and so forth, at the price of indivisibility and illiquidity. The TFLS could be bunged into equity in as tax-efficient a way as you can find.

I transferrred on of my six pensions to a flexible scheme using an IFA. It is 50% equities/ 50% bonds. I do not disagre with the risk profile he made of me, but I have 2 DB pensions and 2 with GARs that I consider to reduce the need for such a high proportion of bonds.. We are supposed tp discuss this at out next meeting, but I don't have much of a feel of how much should be in bonds.