Royal London with GAR

oysterman

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 

xylophone

This is after having taken the tax free Pension Commencement Lump Sum?

oysterman

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

oysterman

Bump!!!!!!!!

cloud_dog

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)?

xylophone

A s32 is a specialised product with its own rules.

https://www.financialadvice.net/s32_buy_out_plan/zone/1288

xylophone

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

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 

cloud_dog

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.

xylophone

obviously I failed.

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