Annuity Payments

plumb1_2

Hi just taking one of my pensions it has a GMP 
Value £34k I have been quoted figures of £13,300 lump sum ( more than 25%) and a annuity of £1305 p/y
So roughly £20,500 for annuity?

With myself and DW having poor heath we are thinking of just having a 10 yrs period for monies received. Would a fixed term or value protection annuity be more suitable? And only covering myself as I see it DW would only get 50%(650 ish) so it only 2 week’s shopping for her.

we do have other pensions and saving, and property to cover our retirement.

Marcon

plumb1_2 said:

Hi just taking one of my pensions it has a GMP 
Value £34k I have been quoted figures of £13,300 lump sum ( more than 25%) and a annuity of £1305 p/y
So roughly £20,500 for annuity?

With myself and DW having poor heath we are thinking of just having a 10 yrs period for monies received. Would a fixed term or value protection annuity be more suitable? And only covering myself as I see it DW would only get 50%(650 ish) so it only 2 week’s shopping for her.

we do have other pensions and saving, and property to cover our retirement.

Are you sure you've got the option to make such a choice?

plumb1_2

Yes with it being a small pot no ifa wants to deal with it.
in the last few weeks I’ve spoken to a ifa  and he only wants to deal with the 300k pot @1%.
He got me the figures from both pension providers and basically said he can’t advise on the small £34k pot as it has a GMP.  Part of it is a pre 88 pension, auto 50%spouse .

Marcon

plumb1_2 said:

Yes with it being a small pot no ifa wants to deal with it.
in the last few weeks I’ve spoken to a ifa  and he only wants to deal with the 300k pot @1%.
He got me the figures from both pension providers and basically said he can’t advise on the small £34k pot as it has a GMP.  Part of it is a pre 88 pension, auto 50%spouse .

If you didn't transfer it out (see your thread from last year: https://forums.moneysavingexpert.com/discussion/6357831/standard-life-gmp/p1) you checked that the current provider will  provide the GMP and let you use the rest as you please? Your post of 17 May 2022 says the following:

Important information about your guarantees:

• Guaranteed Minimum Pension: £1,186.77
• Your plan includes a guaranteed minimum pension (GMP). If you decide to transfer this to a money purchase scheme you will be giving up your GMP.
• If considering retirement and you decide to shop around under the open market option – any new provider would have to accept the liability of providing your GMP.
• If the value of your guaranteed benefit is £30,000 or more, then before transferring you will need to seek financial advice, for which there may be a cost. Contact us if you need more information about your guaranteed benefit. Transferring isn't right for everyone.

 

plumb1_2

Ya that’s my old thread, I did try to find it, but you’re a better detective 😊
The value has decreased since last year.
Ive just spent 30 minutes on the phone with SL retirement team . Very strong Scottish accent and with my poor hearing, loosing the will to live. Went through heath questioning etc, not able to answer all questions so a call back in 10 days.
He said they will shop around for best annuities??. 

Looks like iam just gonna have to take what they offer tbh. With the pre 88 condition and no ifa wanting to deal with it.🙁

plumb1_2

When I take this lump sum and small annuity, will it restrict the amount I can put into my sipp.

Bimbly

plumb1_2 said:

When I take this lump sum and small annuity, will it restrict the amount I can put into my sipp.

If you take a lifetime annunity, then the MPAA restriction won't be triggered.

If you take a fixed term annunity, the MPAA will be triggered.

https://www.moneyhelper.org.uk/en/pensions-and-retirement/tax-and-pensions/money-purchase-annual-allowance-mpaa