Annuity rates

Trevor108

NannaH said:

I think that buying an annuity even at 75/80 is a big risk,  if you need a care home you will be scunnered unless you have a £1million pot.  My neighbour has paid £38,000 a year (plus her pension) for 8 years for dementia care for his wife. 

Then again,  if you have a decent drawdown pot you will be taxed on money used for care home fees and your money will run out faster. 
There ought to be a much higher personal allowance for those self funding their care,  it’s a disgrace that there isn’t. 

Quite agree. Sadly if the tax man doesn't get your money, the care home will

Albermarle

Trevor108 said:

NannaH said:

I think that buying an annuity even at 75/80 is a big risk,  if you need a care home you will be scunnered unless you have a £1million pot.  My neighbour has paid £38,000 a year (plus her pension) for 8 years for dementia care for his wife. 

Then again,  if you have a decent drawdown pot you will be taxed on money used for care home fees and your money will run out faster. 
There ought to be a much higher personal allowance for those self funding their care,  it’s a disgrace that there isn’t. 

Quite agree. Sadly if the tax man doesn't get your money, the care home will

However if it is money in a drawdown pension pot , the taxman is only taking back a part  of what they have given over the years in tax relief . You can't have your cake and eat it , to use a topical expression.

Trevor108

westv said:

And the end of rates based on gender will have affected rates. I wonder what today's rates would be like if that hadn't happened.

westv said:

And the end of rates based on gender will have affected rates. I wonder what today's rates would be like if that hadn't happened.

Unfortunately the gender discrimination act had unintended consequences. Life Assurance and motor insurance used to be cheaper for women and pensions were cheaper for men but I suppose they even out in the end.

Thrugelmir

westv said:

And the end of rates based on gender will have affected rates. I wonder what today's rates would be like if that hadn't happened.

Life expectancy tables are somewhat different as well. Advances in medical science over recent decades have changed the picture.