We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

ISA Annunity

Options
At a certain (later) age in life, with a big pension pot which you see as a nice way to pass on money to future generations, and a six figure ISA savings, and with a degree of health problems, wouldn't it be nice to get a Tax Free Income (ISA wrapper) with impaired life annunity?
Anyone else know if this is something that exists or is possible?

Comments

  • eskbanker
    eskbanker Posts: 31,861 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    Actual income is generally subject to income tax, even from within tax wrappers such as pensions, so even though it's possible to withdraw money from ISAs, that's not really genuine income as such....
  • dunstonh
    dunstonh Posts: 116,830 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    At a certain (later) age in life, with a big pension pot which you see as a nice way to pass on money to future generations, and a six figure ISA savings, and with a degree of health problems, wouldn't it be nice to get a Tax Free Income (ISA wrapper) with impaired life annunity?
    Lifetime annuities benefit from cross subsidy.  Despite most people no longer using them, there are still sufficient to get that mortality gain.   Purchased life annuities are hardly used and don't get much in the way of mortality gain.     A hypothetical ISA annuity would suffer the same problem.      

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
Meet your Ambassadors

Categories

  • All Categories
  • 12 Election 2024: The MSE Leaders' Debate
  • 344.2K Banking & Borrowing
  • 250.4K Reduce Debt & Boost Income
  • 450.1K Spending & Discounts
  • 236.3K Work, Benefits & Business
  • 609.7K Mortgages, Homes & Bills
  • 173.6K Life & Family
  • 248.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards