Non Profit Deferred Annuity

pdab

Hi folks,
I have a Non Profit Deferred Annuity that will pay £3000 per year in 2035 or I can take £38,000 to transfer into my SIPP now.

I am wondering how I can do a calculation to determine which is the best option. If inflation is high between now and 2035, which seems likely, my understanding is that the annuity will not change as it only increases with inflation after I start collecting it.

Taking the lump sum and putting it into my SIPP feels like a better option, but how to evaluate this?

Can anyone offer any advice?

Thanks in advance

Paul

PS this was an Equitable Life "wind up policy" that was transfereed to Utmost Life

xylophone

Are you sure that this is not a safeguarded benefit?

https://assets.publishing.service.gov.uk/media/5a80b577ed915d74e33fbf54/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

Have you checked with Utmost whether regulated advice would be required before transfer to SIPP?

pdab

Hi Xylophone, thanks, yes I beleive it is this type of benefiot and regulated advice is definitely required.

Utmost did say that they have heard from others in the same position as me that they found it hard to find an appropriate advisor and the advice carried a fairly hefty fee.

I was hoping I could evaluate this myself to some degree.