Annuity help

indigofreeze

I have £20,000 in a private pension pot and about £1000 in another private pension. I really want to work less hours and wanted to know what's the best way of getting a monthly income from this money. I know it won't be a huge amount but it will help.

I'm 57, would a 10 year annuity be a good idea then when it ends I will be able to claim my state pension. 

I am clueless about pensions so can anyone advise where and how I could get the most monthly income. Can anyone suggest a good company to contact?

BoxerfanUK

https://www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/compare-annuities

Qyburn

indigofreeze said:

I'm 57, would a 10 year annuity be a good idea then when it ends I will be able to claim my state pension. 

To me, no it doesn't sound a good idea. It would give you around £2,300 per year for 10 years.  Fixed and not adjusted for inflation. Less tax if you're still working. At most thats only 1/5 of the full State Pension.

You just have to decide in your own mind if that's the best use of your retirement savings.

Are you on track to receive the full State Pension? Do you have other pension or retirement provisions?

Marcon

indigofreeze said:

I have £20,000 in a private pension pot and about £1000 in another private pension. I really want to work less hours and wanted to know what's the best way of getting a monthly income from this money. I know it won't be a huge amount but it will help.

I'm 57, would a 10 year annuity be a good idea then when it ends I will be able to claim my state pension. 

I am clueless about pensions so can anyone advise where and how I could get the most monthly income. Can anyone suggest a good company to contact?

If that best meets your needs, yes. Otherwise no. In the absence of any relevant information, it's impossible to answer helpfully.

If that's the totality of your private pension provision, and you cash it in now, can you afford to survive on just the state pension? Even if you are building up some more pension via your current employer's workplace scheme, reducing your hours now will reduce the benefits you will build up while you continue to work.

In short, can you afford to work fewer hours?

kimwp

Is the state pension going to be sufficient?

Albermarle

indigofreeze said:

I have £20,000 in a private pension pot and about £1000 in another private pension. I really want to work less hours and wanted to know what's the best way of getting a monthly income from this money. I know it won't be a huge amount but it will help.

I'm 57, would a 10 year annuity be a good idea then when it ends I will be able to claim my state pension. 

I am clueless about pensions so can anyone advise where and how I could get the most monthly income. Can anyone suggest a good company to contact?

My immediate reaction is that you probably can not afford to work less hours, and you need to put more into your pension. Otherwise you will be living on a low income.

Brie

Or have we all got this wrong and you have a £20k a year DB pension that you think you can cash in?