Should I buy an annuity now, or... ?

sgx2000

Another option UFPLS
If your state pension anspd db are enough to cover your day to day expenses

You  could drawdown whatever you need...
25% tax free, the rest taxed at your normal rate

GabbaGabbaHey

Thank you to everybody who responded.

I have been digesting and investigating the various very useful suggestions (especially relating to combining the DC pensions to save fees, the idea of using the money to defer state pension, and UFPLS).

In answer to another comment - no, our house is definitely not suited to dotage (5 flights of stairs top to bottom!) and we plan to downsize to something more suitable, and to release some equity at the same time. We've also seen a couple of houses with small lifts (Stiltz seems to be the best-known brand) which seems like a good alternative to a downstairs bedroom/bathroom or a stair lift, where the layout permits.

Lastly, if I do blow some of the money, it's actually more likely to be on something with an engine and 4 wheels than white and powdery :-)

BoxerfanUK

It would be interesting to see what index linked  income for life figure you would get compared to what sort of return you could get with an alternative safe investment.

plus, I wouldn’t forego a tax free lump sum in order to use it to buy an annuity that I am going to subsequently pay tax on.  If you do you would presumably factor the annuity you are getting after tax deducted when comparing the income with other investment options!

Hoenir

BoxerfanUK said:

It would be interesting to see what index linked  income for life figure you would get compared to what sort of return you could get with an alternative safe investment.

Investments come with risks as capital values can fluctuate. An annuity provides a quantifiable income stream. Indexation providing potentially guaranteed buying power. Or a predetermined uplift that enables budgeting to be performed with certainty. 

With the rise in historic equities markets since 2009. Easy to get lulled into a sense of complancencey. As to what the medium term future holds in store. 

westv

Hoenir said:

BoxerfanUK said:

It would be interesting to see what index linked  income for life figure you would get compared to what sort of return you could get with an alternative safe investment.

Investments come with risks as capital values can fluctuate. An annuity provides a quantifiable income stream. Indexation providing potentially guaranteed buying power. Or a predetermined uplift that enables budgeting to be performed with certainty. 

With the rise in historic equities markets since 2009. Easy to get lulled into a sense of complancencey. As to what the medium term future holds in store. 

There have been several corrections and one crash since 2009 so there should be no complacency.

BoxerfanUK

Hoenir said:

BoxerfanUK said:

It would be interesting to see what index linked  income for life figure you would get compared to what sort of return you could get with an alternative safe investment.

Investments come with risks as capital values can fluctuate. An annuity provides a quantifiable income stream. Indexation providing potentially guaranteed buying power. Or a predetermined uplift that enables budgeting to be performed with certainty. 

With the rise in historic equities markets since 2009. Easy to get lulled into a sense of complancencey. As to what the medium term future holds in store. 

I said, how it would compare with a 'safe' investment!