Pension Company vs Independent Financial advice stitch up !

DJPench

I thought buying an annuity WAS using your total pot to buy a product that would pay you whatever they will for the rest of your life ? Like an insurance esentially.. they gamble you might dies in 10 years but you may live 30.. but in any event you still get your 300 a month.

I do not understand what draw down is, sorry. I'll google it.

aha.. "There was no record of a drawdown of funds from the account. The income drawdown plan allows you to keep your fund invested in the stock market after retirement while you draw an annual income from it"

Hmm...is that not finite in scope where an annuity is a guarantee of payment for any number of living years ?

Seabee42

That is the choice, an annuity with a guaranteed income or keep the money invested and take an income via drawdown. Annuity have become expensive (largely as a result of gilt yields being on a down trend for 20 years plus) but it has guarantees. If you are prepared to take the risk you may get more.


Most people under appreciate how long they will live, and the temptation with drawdown will always be there so it needs discipline to use and as result does not suit everyone.

Mnd

I expect we may do a bit of both, when my wife retires at 62 in 4 years, we will drawdown from her pension fund appropriate 10k a year until she takes her state pension.
We will probably wait until 68 to boost her state pension

Assuming then she should still have 50k left in her fund (I will be 74 and she will want easy money management schemes ) we may then put the 50k into a single life annuity for her.

The beauty of the new rules is that you don't have to decide now, and you are not tied to I way of taking the money.it is flexible.

I suggest you start off your fund and build it up, don't worry too much yet about what you are going to do with it, you have time to learn about your options, but if you don't build up your fund you won't have nothing to worry about anyway.

Good luck

Mnd

Seabee42 wrote: »

That is the choice, an annuity with a guaranteed income or keep the money invested and take an income via drawdown. Annuity have become expensive (largely as a result of gilt yields being on a down trend for 20 years plus) but it has guarantees. If you are prepared to take the risk you may get more.


Most people under appreciate how long they will live, and the temptation with drawdown will always be there so it needs discipline to use and as result does not suit everyone.

Bimbly wrote: »

I suggest starting a new thread outlining your situation and what you want to achieve, as people may have drifted away from reading this one.

Say you have learnt some things from a previous thread and want to start afresh.

I'm glad you were able to calm down and look at some of the links provided.

This, exactly