Multiple pensions into one Annuity?

tonyh66

Hi, I have 4 pensions from aviva(£21k), 2 Royal London(£18 and £27k) and Reassure(£7k), Im thinking of putting them all together and taking a fixed term annunity to see me until SPA (12 years) . Should I do this or see what annuities these companies can do separately? Will there be excessive fees to pay?

Yes Im aware the monthly amount will come to beer money for some posters on here but it is what it is, and im pretty much done with working.

dunstonh

should I do this 

Insufficient information to answer that.

 or see what annuities these companies can do separately?

What makes you think any of those companies can do fixed-term annuities? 

Will there be excessive fees to pay?

Your values are low and the main source for fixed-term annuities is via an IFA but your values are relatively low in total and that means you are not going to get the same sort of terms that a larger investor would get.

tacpot12

I'm afraid I can't help you with advice, but I think a lot of people would be interested to hear what sort of numbers you are quoted. Don't be concerned that your pension pots are relatively small. They will still be worth at least £500 per month to you, which I am sure will be a big help.  

xylophone

 im pretty much done with working.

Have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

You regard this money as "pocket money" (that is to say, you have a partner to share living expenses)?

https://www.moneyadviceservice.org.uk/en/tools/annuities

Marcon

tonyh66 said:

Hi, I have 4 pensions from aviva(£21k), 2 Royal London(£18 and £27k) and Reassure(£7k), Im thinking of putting them all together and taking a fixed term annunity to see me until SPA (12 years) . Should I do this or see what annuities these companies can do separately? Will there be excessive fees to pay?

Yes Im aware the monthly amount will come to beer money for some posters on here but it is what it is, and im pretty much done with working.

If you're 'nearly done working', will your income continue to make full use of your tax-free personal allowance each year? If not, you might think about cashing in enough of your pension to bring you up to at least the level of your personal allowance (remember that you can take 25% of each withdrawal tax free).

Once you've done that, you could buy a fixed term annuity using the money you've withdrawn. Withdrawing it means it has become your 'own' money (as opposed to 'pension' money)  and you can benefit from better tax treatment on the annuity - part of it is treated as a return of capital, so that part isn't subject to tax. 

jamesd

You shouldn't normally look to buy an annuity from the place where your pension money is, instead you should seek the best deal from any provider.

You should expect to get little more back than your capital. Regular savings accounts, ordinary savings and perhaps some investing should be able to do better.

tonyh66

Sorry for being so vague. It looks like im going to be unemployed by Dec this year, my wife works for the NHS but has started having physical health problems doing 12 hour shifts. We are scoping out the possiblity of selling up and moving to France permanently as retired. I am trying to calculate how much we will have as a monthly income. I have a DB pension estimated worth £260 p/m @ end of 2021, I have these other pensions which I want to use until my SPA. My wife has her NHS pension which is estimated £630p/m, I think we are looking at £1500 p/m until SPA kicks in which is enough to live on.

I want to avoid drawdown (the french won't take savings/drawdown as a form of income) or taking the 25% and using it for investment, its just too complicated for the small amount we are looking at. I think a fixed term annunity is the best way to go.

Generally, Im asking what kind of fees will I have to pay to take these pensions and put them into an annunity?

xylophone

I have these other pensions which I want to use until my SPA. My wife has her NHS pension which is estimated £630p/m, 

Have you both obtained a state pension forecast?

https://www.gov.uk/check-state-pension

I think a fixed term annunity is the best way to go.

Have you had a look at the link in my post above?

Might it be worth exploring transferring your pensions to one of your providers and then exploring the annuity question?

Or to another provider?

Example

https://www.hl.co.uk/retirement/annuities?theSource=PCHLA&Override=1&adg=G+HLBA+HLA&gclid=EAIaIQobChMIpKPU-pfi8AIVZBoGAB13jgy_EAAYASAAEgJqVPD_BwE

jamesd

It looks as though you have a critical constraint: what the French government will accept as income to allow you to immigrate. If that requires annuity, so be it.

For both DB it's worth getting an idea how much a one year delay will make you in extra income. You can fund that with drawdown until you move to France and need to meet their requirements. But while this improves long term income it'll reduce it in the short term by reducing the annuity budget, so some care is needed.

tonyh66

Yes we have both obtained SP forcasts, mine is saying it will be £179.60 p/w if I do 1 more year until 2032. I think the wife has a similar forcast. Moneyadviceservice is estimating fixed annunity of £630 p/m over 10 years (£450 over 15 years).

GOV also saying I have COPE of £25 p/w which is connected to one of the RL pensions, so i don't know how that will work?

Marcon

tonyh66 said:

Yes we have both obtained SP forcasts, mine is saying it will be £179.60 p/w if I do 1 more year until 2032. I think the wife has a similar forcast. Moneyadviceservice is estimating fixed annunity of £630 p/m over 10 years (£450 over 15 years).

GOV also saying I have COPE of £25 p/w which is connected to one of the RL pensions, so i don't know how that will work?

It doesn't 'work'. The COPE is one of the most confusing  inventions in the history of pensions. It is used purely to assess the starting level of your pension where you fall under 'transitional' arrangements (i.e. from the old to the new state pension) and for no other purpose, and simply means that your total state pension has been reduced to take account of periods when you were 'contracted out' of the state additional pension.