RPI Escallation and 3% Escalation Question

choi

I have already taken my state pension
I like the relative security of an RPI Annuity
Even taking into account the payments are low

I do not like the ups and downs of investments

I will be using a variety of savings accounts to provide some kind of return ony savings
I accept that these are unlikely to beat inflation

I may buy another annuity if things get difficult
Or a property

JoeCrystal

Good! Then go ahead and opt for RPI-linked annuity. I do find them very appealing as well but sadly quite expensive at the moment. In my ideal world, I would purchase RPI-linked annuity to cover all essential living cost plus little extra and use the leftover fund to top up my income as needed.

jamesd

choi wrote: »

I have already taken my state pension

A person who has taken their state pension is still allowed to start deferring once and this is likely to pay two or more times the income per Pound spent than an RPI annuity. Depends on health, age and some lifestyle factors though. If you reached your state pension age before April 2016 the increase is 10.4% per year deferring instead of 5.8% and is mostly inheritable by a spouse.

nigelbb

jamesd wrote: »

A person who has taken their state pension is still allowed to start deferring once and this is likely to pay two or more times the income per Pound spent than an RPI annuity.

First I have heard that this is possible. Do you have a link as a quick Google found nothing.

xylophone

Do you have a link as a quick Google found nothing.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/626494/state-pension-deferral-if-you-reached-state-pension-age-before-6-april-2016-extra-information.pdf

If you are already getting your State Pension, you can choose to stop getting it for a while. You will need to tell DWP the date you want to stop claiming from (this cannot be a date in the past or more than 4 weeks in the future).You can only stop claiming once.
You must normally live in the UK to stop getting your State Pension. If you live outside the UK and have claimed your State Pension, you will not normally be able to choose to stop claiming it. However, you may have this option if you live in one of the EEA countries and you are a UK national, a national of one of the EEA countries or you are allowed to live there for other reasons. For more information on the EEA countries see https://www.gov.uk/eu-eea

jamesd

nigelbb wrote: »

First I have heard that this is possible. Do you have a link as a quick Google found nothing.

This Which? guide explains it without wrongly implying that it's only for those who reached state pension age before April 2016 as seems to be done on many pages.