With Profits Annuity & Pension Credit

SofaSurfer70

Provider will  not tell me how much much is in my pot. I receive a very small annual annuity under £600.
It is preventing me from receiving Pension Credit I only have a state pension so would like to cash  In annuity. Provider not helping. Can you . Thanks 

Marcon

SofaSurfer70 said:

Provider will  not tell me how much much is in my pot. I receive a very small annual annuity under £600.
It is preventing me from receiving Pension Credit I only have a state pension so would like to cash  In annuity. Provider not helping. Can you . Thanks 

If your 'pot' has been used to buy an annuity, then there's no money in the pot. Once purchased, an annuity is payable for life and the terms can't be changed unless the provider agrees, which is unusual.

DullGreyGuy

An annuity is an insurance policy, there is no "pot" any more than there is a pot for your car or travel insurance. The insurer will hold a reserve against the policy to show they have the financial capabilities to pay all their policyholders including through a 1 in 200 event (eg stock market crash, hyper inflation, cure for cancer etc) 

Depending on the terms of the policy it may be possible to take a trivial commutation if its the only pension or annuity you have but this varies between providers with many not allowing it

dunstonh

Provider will  not tell me how much much is in my pot. I receive a very small annual annuity under £600.
It is preventing me from receiving Pension Credit I only have a state pension so would like to cash  In annuity. Provider not helping. Can you . Thanks 

A With profits annuity has no value.  That is why they cannot tell you.  It also means you cannot cash it in.

xylophone

You had a with profits policy.

You chose to use the proceeds of the policy to buy a lifetime annuity.

You do not say that it is index linked so presumably approx £11.54 a week for life.

Presumably your annuity provider has confirmed that it cannot be cashed in or surrendered.


https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs48_pension_credit_fcs.pdf

Appropriate minimum guarantee

Your appropriate minimum guarantee (or ‘appropriate amount’) is the amount of money the government thinks you need to live on each week. It is made up of the standard minimum guarantee for a single person or couple, plus any extra amounts you are entitled to for severe disability, caring responsibilities, children, or housing costs. 

1. Standard minimum guarantee

   The weekly standard minimum guarantee is £218.15 for a single person and £332.95 for a couple. If your income is less than this and you meet the other qualifying conditions, you may qualify for Guarantee Credit. If your income is higher, you may still qualify if you are entitled to any of the extra amounts in this section or some income can be disregarded.

Presumably your SP plus annuity takes you to an amount higher  than your appropriate minimum guarantee?

SofaSurfer70

Thank you to all those who left me messages,, very helpful, wish I’d known this when I bought the annuity.