ISA Annunity 7 February at 4:45PM in ISAs & tax-free savings 2 replies 95 views

GuruJC

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?

eskbanker

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

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.