Royal London with GAR

As per heading, my wife has a pot approximately worth £8,400.00. She is 61 soon not working & has no other income. 

She could take it next month, which with the guarantee could be worth £772.00 PA or without the guarantee could be £460.00 PA.

To us, it's a no brainer that she should take it. What do we need to take into consideration before making a decision 
if i had known then what i know now

Comments

  • xylophone
    xylophone Posts: 44,362 Forumite
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    This is after having taken the tax free Pension Commencement Lump Sum?
  • oysterman
    oysterman Posts: 748 Forumite
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    xylophone said:
    This is after having taken the tax free Pension Commencement Lump Sum?

    She would lose the guarantee ''On any part of your pot that you take as a lump sum''

    There is no other calculation about lump sum & reduced pension in the paperwork received
    if i had known then what i know now
  • oysterman
    oysterman Posts: 748 Forumite
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    Bump!!!!!!!!
    if i had known then what i know now
  • cloud_dog
    cloud_dog Posts: 6,044 Forumite
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    I cannot offer any insight into your wife's particular situation, but my partner has a Section 32 with a value of c. £9k with a guaranteed (in) payment of c. £1220pa. I don't see any value in not simply taking the annual payment.

    I have considered if we just leave it to accrue post NRA; it will increase each year by 7%pa.  Might this be an option for your wife (if the income/money is not required)?
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • xylophone
    xylophone Posts: 44,362 Forumite
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    A s32 is a specialised product with its own rules.

    https://www.financialadvice.net/s32_buy_out_plan/zone/1288
  • xylophone
    xylophone Posts: 44,362 Forumite
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    There is no other calculation about lump sum & reduced pension in the paperwork received

    Should your wife not be enquiring about the options available?

    If she takes the 25% PCLS, what is the GAR on offer?

    Is the annuity flat or index linked?

  • oysterman
    oysterman Posts: 748 Forumite
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    xylophone said:
    There is no other calculation about lump sum & reduced pension in the paperwork received

    Should your wife not be enquiring about the options available?

    If she takes the 25% PCLS, what is the GAR on offer?

    Is the annuity flat or index linked?

    The Annuity is flat.

    RL have gave her 5 options, 3 of them would mean losing GAR.

    The other 2 are either leave it in or take it.

    I will get her to contact RL.

    Many thanks for the replies 
    if i had known then what i know now
  • cloud_dog
    cloud_dog Posts: 6,044 Forumite
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    xylophone said:
    A s32 is a specialised product with its own rules.

    https://www.financialadvice.net/s32_buy_out_plan/zone/1288
    I know, that is why I predicated my response with...

    "I cannot offer any insight into your wife's particular situation..."

    I tried to make my response as 'for what it is worth' as possible; obviously I failed.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • xylophone
    xylophone Posts: 44,362 Forumite
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    obviously I failed.

    Not at all - it was just a word to the OP that S32 and GAR policy can't be directly compared.

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