Section 32 sanity check

PaulCooper

I have a section 32 policy that is now with Aviva. The previous providers have confirmed the policy benefits from a GAR of approx. 9.6%. I'm 18 months away from being 65 (the only date that triggers the GAR). I have always assumed it would be a 'no brainer' to draw this pension on the said date.
Just double checking to make sure that there is no better alternative that I'm missing. Or something I should be doing now preparing Aviva for the payment of this policy
Policy has a value of >£30k there might be terminal bonuses added to this figure, but as they fluctuate a fair amount I'm not taking these into consideration
Thanks
Paul

JoeCrystal

What is the value of the section 32 policy and does the annuity have any index-linking and spousal pension? Considering that the different annuities at 65 vary from 2.9% to 5.1%, it can be a no brainer.

cloud_dog

OP, what is the guaranteed annual pension amount?

<<EDIT: Tried to delete as this is covered in Joe's post, but am unable to>>

PaulCooper

The policy at present has a value of £33k, made up of an initial amount plus yearly bonuses. I have confirmation from them in 2010 that the GAR applies to the £33k.
The annuity has no index linking
It does have a 50% spousal pension
The guaranteed annual pension is about £1100
Paul

wjr4

That’s 3.3%? Have you asked them for figures at age 65 if possible?

PaulCooper

Yes I realise the £1100 looks low, but that was how the policy was written, unbeknown to me, until reading things on this site & then asking the question

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'is there a GAR on this policy', that's when it came out about the 9.6% GAR, which is now applicable to the value of the fund, which is about £33k.
Hope I'm making sense here?
Paul