Enhanced annuity due to ill health - where to get advice?

satchmo1

Hi

I have retired from work at 65 due to polycythemia vera rubra Jak 2 - a blood cancer. However I haven't yet done anything about taking anything from my three pension pots (Aviva, Pension Bee and Prudential). I have almost come to the decision to take a 25% drawdown.

I recently saw a snippet of information that made me think I may be eligible for an enhance annuity. I have found a 26 page form that is geared to IFAs (who I'd prefer to avoid if possible), but before I start filling it out does anyone know if
a) it's worthwhile,
b) if my condition would be eligible            
c) is it essential to use an IFA.

dunstonh

I have found a 26 page form that is geared to IFAs (who I'd prefer to avoid if possible), 

IFAs are generally the best place to get an annuity.

where to get advice?

That would be an IFA

a) it's worthwhile,
b) if my condition would be eligible            
c) is it essential to use an IFA.

a) if its suitable yes.  if its not suitable then no.  Little to go on at the moment, so you need to add more.
b) probably.
c) no.  But you will likely get the best rate if you do.

xylophone

Have you obtained a state pension forecast?

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

In your circumstances, a discussion with an IFA who would look at all your circumstances might be helpful?

https://adviserbook.co.uk/

You would tick "confirmed independent" and "pensions and retirement" when the menu comes up.

https://healthunlocked.com/mpnvoice/posts/131592211/enhanced-annuity-and-polycythemia-vera

An old discussion but the site may be of interest.

Albermarle

 I have almost come to the decision to take a 25% drawdown.

Not quite sure what this means. Presume you mean you will take 25% tax free and drawdown the rest over time ?

Have you thought about at what rate to draw down the 75% in your circumstances ? and how to best invest the money to hopefully maximise the drawdown in money/time terms ?

Are you aware that if your estate is potentially subject to inheritance tax , you can leave any remaining pension pot to an heir and it would not be included in in IHT calculations ?

Clearly if you bought a lifetime annuity there would be nothing left to leave behind.

satchmo1

Thanks Albermarle

I didn't phrase my question correctly... I want to take the 25% tax free, and wondered if I would benefit from asking the Pension providers for an enhanced annuity. 

No, I hadn't thought about what rate to draw down the 75%

I'm aware of the IHT, but when I joined the pension schemes I put my two adult sons as equal beneficiaries.

I should clearly get advice from an IFA, but thanks all for your questions to set the discussion going.

dunstonh

I didn't phrase my question correctly... I want to take the 25% tax free, and wondered if I would benefit from asking the Pension providers for an enhanced annuity. 

The majority of pension providers have withdrawn from the annuity market.  There are not many providers left.

Do you need the income or is it just the tax free cash you are after?
Do you need all of the tax free cash in one go?