Pension Tax Free Lump Sum

Al_Ross

I am due to retire soon, I have a work Stake Holder Pension with Aviva.

I have decided to take my tax free lump sum and then an annuity with the rest, which I will get at the enhanced rate due to health conditions.

Aviva told me previously that it takes about 3 months to set up the annuity. My question is how long does it take them to pay me my tax free lump sum after I tell them? 

Marcon

Best to check direct with Aviva, who should be able to give you the most accurate information.

dunstonh

Aviva told me previously that it takes about 3 months to set up the annuity

It doesn't take that long. I did one early last week and it completed yesterday.   About a week and a half most of the time where Origo can be used  but certain annuity companies have capacity issues which means their admin takes longer but they do backdate to when they get the money.

When you spoke to Aviva was it their in-house sales team (which you wouldnt really want to use) - maybe they have a three month timescale.    However, Aviva CGNU plans are usually very quick.  Aviva FL/AXA a little bit longer but not by much.

My question is how long does it take them to pay me my tax free lump sum after I tell them? 

If you use the OMO method, then about 3-5 days with Aviva CGNU plans.  If you use IVPPP then it depends on the annuity provider as they pay the TFC.

DRS1

3 months (or thereabouts)

They will pay the lump sum at the same time as they pay the annuity provider the balance to buy the annuity.

DRS1

Oh and they will have told you to shop around for the annuity.  That would be a good idea as I don't think Aviva have the best annuity rates.

Al_Ross

They have the best enhanced rate, I checked. I have had many serious heath conditions and I think qualify for the highest rate.

dunstonh

Al_Ross said:

They have the best enhanced rate, I checked. I have had many serious heath conditions and I think qualify for the highest rate.

Have you actually confirmed that or are you relying on the disclosure that says whether it is the best rate or not?    The disclosure is flawed and should not be relied on. Especially with health issues.

Whilst Aviva can come out top, I havent seen them come out top in the last dozen or so quotes I have obtained.  Including one I am working on now where there are multiple medical conditions and Aviva is second from the bottom.

Sometimes a provider will hit a sweet spot with certain medical conditions but Aviva's pricing tends to see them pop up the table for a short period, they get the business they want and then drop down again.   If you capture them in the window when they are higher, then great. 

I don't think I have ever seen anyone qualify for the highest enhancement.  You theoretically have to be on death's door to get that. In which case, you would probably question why you are buying an annuity.

DRS1

Al_Ross said:

They have the best enhanced rate, I checked. I have had many serious heath conditions and I think qualify for the highest rate.

That may be true but it would not hurt to put your details in an annuity quoter and see what it comes up with (Moneyhelper has one as does Hargreaves Lansdown).

Al_Ross

dunstonh said:

Al_Ross said:

They have the best enhanced rate, I checked. I have had many serious heath conditions and I think qualify for the highest rate.

Have you actually confirmed that or are you relying on the disclosure that says whether it is the best rate or not?    The disclosure is flawed and should not be relied on. Especially with health issues.

Whilst Aviva can come out top, I havent seen them come out top in the last dozen or so quotes I have obtained.  Including one I am working on now where there are multiple medical conditions and Aviva is second from the bottom.

Sometimes a provider will hit a sweet spot with certain medical conditions but Aviva's pricing tends to see them pop up the table for a short period, they get the business they want and then drop down again.   If you capture them in the window when they are higher, then great. 

I don't think I have ever seen anyone qualify for the highest enhancement.  You theoretically have to be on death's door to get that. In which case, you would probably question why you are buying an annuity.

I did get quotes from various sites but that was six months back, so will check again.

Past medical history includes, acute myloid leakaemia, bone marrow transplant, heart desease, triple bypass,

stage 3 kidney desease, liver desease, type2 diabetes,  numerous skin cancers and undiagnosed stomach problems.