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Royal London with GAR
oysterman
Posts: 749 Forumite
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
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
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Comments
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This is after having taken the tax free Pension Commencement Lump Sum?1
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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 receivedif i had known then what i know now0
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Bump!!!!!!!!if i had known then what i know now0
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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
Sometimes.... I am like a dog with a bone1 -
A s32 is a specialised product with its own rules.
https://www.financialadvice.net/s32_buy_out_plan/zone/1288
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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?
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The Annuity is flat.xylophone said:There is no other calculation about lump sum & reduced pension in the paperwork receivedShould 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?
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 repliesif i had known then what i know now0 -
I know, that is why I predicated my response with...xylophone said:A s32 is a specialised product with its own rules.
https://www.financialadvice.net/s32_buy_out_plan/zone/1288
"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
Sometimes.... I am like a dog with a bone0 -
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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