Thirty Year Guarantee Annuity

choi

ProDave wrote: »

That statement alone reinforces what I think, than an annuity is a very bad idea.

Put your £250K into a drawdown SIPP and draw your £6K per year and the pot will last 41 years even assuming no interest or growth. I think that might just be long enough for you?

I would be wanting a LOT more than £6K per year before I would even give an annuity a second thought.

What about fees to set up draw down including platform costs
What about possible losses on drawdown investments
Also you have not factored in RPI escalation

Brynsam

choi wrote: »

What about fees to set up draw down including platform costs

What about doing some research for yourself?

choi

Brynsam wrote: »

What about doing some research for yourself?

I am doing my own research
Which is why I am looking for comments and advice from people on here with knowledge and experience of this issue

wjr4

Would you consider two annuities? One level (more money now) and one increasing with RPI?

choi

wjr4 wrote: »

Would you consider two annuities? One level (more money now) and one increasing with RPI?

I will look into this
What would be a good split
Half and half ?

Also thought of taking 25% tax free cash and just topping up the lower annuity from the 75% balance

Would this make financial sense

MEM62

choi wrote: »

I will look into this
What would be a good split
Half and half ?

Also thought of taking 25% tax free cash and just topping up the lower annuity from the 75% balance

Would this make financial sense

Based on current rates, no annuity makes sense in my opinion. Annuities are very poor value for money. OK, they offer a high level of comfort but you really should consider drawdown.