When to drawdown pension

clacton57

I have a small annuity/private pension which i will need to draw down  at the latest in 18 months time. It is a little over £54k. Bearing in mind that the Government is going to be looking  to  target large pension/ annuity providers to plug its 'black hole' and also interest rates might fall in the foreseeable future, would I be better, taking that pension now  or keeping it? I am not paying into it anymore.

dunstonh

I have a small annuity/private pension which i will need to draw down  at the latest in 18 months time. 

You cannot drawdown with an annuity unless it is a fixed term annuity that is coming up for maturity.

 Bearing in mind that the Government is going to be looking  to  target large pension/ annuity providers to plug its 'black hole' and also interest rates might fall in the foreseeable future, would I be better, taking that pension now  or keeping it? I am not paying into it anymore.

Please provide a  link to anything that the Government has said on pensions.   Or are you just relying on the wild media speculation where anything goes?

Why would you take it out of a pension and pay tax on it just to stick it in a savings account (there is also media speculation that the personal savings allowance is gong to be reduced too)?

The general rule of thumb still applies.     Unless there is justification for taking the money out of the pension, then the pension remains the best place suitable for it.

Mark_d

You would need to consider how the fund value is likely to change, and also how annuity rates are likely to change assuming it's your intention to buy an annuity.

The fund value change will depend on how the fund is invested, what happens in the US elections, what happens in the Autumn budget, interest rates, any escalation of the war in Ukraine...

Annuity rates are more closely linked to interest rates but also depend on your age and health.  Generally the later you buy an annuity, the more you'll get paid because payments are adjusted to reflect your remaining life expectancy.

kempiejon

clacton57 said:

I have a small annuity/private pension which i will need to draw down  at the latest in 18 months time. It is a little over £54k. Bearing in mind that the Government is going to be looking  to  target large pension/ annuity providers to plug its 'black hole' and also interest rates might fall in the foreseeable future, would I be better, taking that pension now  or keeping it? I am not paying into it anymore.

I would have thought the best thing to do is take your pension when you need it not because you're scared of what a government might do. Why must you take it in 18 months, is it your birthday then? What'll your tax situation be then?
If interest rates are going to fall then wisdom sometimes says equities might be better.

I heard the government might be making announcements in a month or so, I'll wait for facts before altering any strategy as important as my pension.