Cashing in an anuity

Rasputin247

Can anyone help me please with some good advice. I'm 77 yes old in ill health physically & receiving mental heath care from the critical mental health care team..I have an anuity that's already in a monthly payment, my pension company informed me that it's not in their terms & conditions to pay out a pot that's in a payment anuity. However a recent letter from Rothesay pension Co states...whilst there is legislation which may allow your pension to be exchanged for a one off lump sum if we agree Rothesay is not currently able to allow policies that has been transferred from Prudential to be cashed in? Can anyone please advise me? It seems really ambiguous to me..any advice would be most welcome. 

Malthusian

The letter may refer to the fact that very small annuities can sometimes be cashed in. You said in another post that the value was £18,000, but annuities in payment don't have any value. In any case, it sounds like yours is too big even if Rothesay were willing to consider it.

The letter seems unambiguous - you cannot cash in your annuity. There is no "pot" anymore, it was used to buy the annuity when it started.

Unfortunately the nature of annuities is that they generally cannot be reversed. People who die before getting full value back subsidise those who live for many years.

sandsy

I took a quick look at the court documents regarding the transfer of business from the Pru to Rothesay that I found online. Once in payment, your Prudential annuity could only be commuted if:

-  Where, following the death of an annuitant, the benefits subsequently payable to a contingent beneficiary are small enough to qualify for trivial commutation; or

- Where a pension sharing order has been granted

These conditions remain in place after the transfer. So although legislation permits commutation in very limited circumstances, the rules on your annuity are narrower still.