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PP advice for a relative - annuity or drawdown?

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  • Chickereeeee
    Chickereeeee Posts: 1,324 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Health conditions would improve annuity (depressingly).

    I fail to understand why people are taking their 25% tax free lump sum in one go.  There would be tax to pay maybe pushing people into a higher tax bracket.

    Mind you I have seen a lot of brand new Motorhomes on my travels.  Anecdotally, many retirees helping out their grandchildren.  Worst case cashing in pensions to help them out.  Crazy.
    Maybe to avoid breaching LTA or to put into ISA for tax free income or to pay off mortgage?
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