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Private pension pot 'market place'..?
Comments
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Annuity rates have dropped so much that they are not a good option for most people. I retired three years ago and live entirely off private pension that is in "drawdown". This means either that draw an income from the pension either by selling some of the assets each year, or you buy assets that produce an income. I have mainly bought assets that produce an income, while leaving about 20% of the portfolio investing in assets that don't produce an income, but that are likely to grow over time at more than the rate of inflation.
The most important issue to consider, when you are shopping around for a pension that allows you to drawdown in this way is charges. You existing pension may allow you to draw an income in this way; if it does you should still check the charges against on the the independent firms like Hargreaves Lansdown and AJ Bell to see that they are competitive.The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.1 -
I would take a step back and spend some time researching the options ( pros and cons ) between drawdown and taking an annuity . Once you have made this decision you can then look around for the best provider for your needs.
Have a look at this government website https://www.pensionsadvisoryservice.org.uk/
And as suggested already book an appointment with Pension Wise ( also government run and free)https://www.pensionwise.gov.uk/en1 -
I'm much indebted for all the comments. I was aware that there was an opening up of pensions options, in legal terms, a few years back but at that stage it didn't affect me.
As mentioned, by that time I had already 'cashed in' a small pension and the only route on offer then had been to take it to an online 'market place' to see whether anyone else could offer a better lump sum/annuity combination than the illustration from your provider. I sort of assumed that this was still the main channel in use but clearly things are vastly different now. I'm glad I took the time to ask the question!!3 -
As mentioned, by that time I had already 'cashed in' a small pension and the only route on offer then had been to take it to an online 'market place' to see whether anyone else could offer a better lump sum/annuity combination than the illustration from your provider.That wasn't the only option as drawdown had been available for several decades. Annuity was still used for smaller pensions though.I'm glad I took the time to ask the question!!Now you have a lot of reading to do.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
So it seems!0
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