S226 Standard life policy

Trundlethwaite

I have a Standard life pension that is a S226 Retirement Annuity policy

I started it in 1985 , I am wondering if as it says the only option I may have with this policy might be to take an annuity and not drawdown.

Obviously I could transfer out .

I know I could just ring them but wanted to ask if any one knows here first.

dunstonh

I started it in 1985 , I am wondering if as it says the only option I may have with this policy might be to take an annuity and not drawdown.

Drawdown wasn't an option in 1985. It was introduced in the Finance Act 1995.

So, your question is a bit like asking why a black and white TV doesn't show things in colour. It was not built to.

Obviously I could transfer out .

which is what most do. Even with plans that may support drawdown but be old and expensive or low quality.

That said, be on guard for safeguarded benefits. A good number of S226 RACs had safeguarded benefits and those can be where the real value is.

Marcon

https://forums.moneysavingexpert.com/discussion/6653274/s226-standard-life-policy

A policy of that age won't support drawdown - it didn't exist at the time.

DRS1

As you approach your selected retirement date under the policy you will get some general literature from SL setting out your options. If SW and Aviva are anything to go by that literature will say you can take drawdown either as FAD or UFPLS. Only if you get to the stage of saying I want to do drawdown will they tell you you need to transfer to a more modern plan.

There is nothing wrong with taking an annuity and if you do that you will not be restricted to having an annuity from SL. Indeed they will say you should shop around. The only circumstance in which you would be restricted to an SL annuity would be if there was a guaranteed annuity rate in the policy and you wanted to take advantage of that (no-one other than SL is going to honour that guaranteed rate).

Trundlethwaite

https://forums.moneysavingexpert.com/discussion/comment/81865646#Comment_81865646

Ok thanks it confirms what I suspected might be the case.

Trundlethwaite

https://forums.moneysavingexpert.com/discussion/comment/81865710#Comment_81865710

Thanks, I was having a look on the S/L

website but only had generalised info on options for taking out your money.

I am wondering about using this pension earlier than planned before state pension age if I were to use it as annuity .

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81865733#Comment_81865733

With this age of pension policy your selected retirement date is likely to be 60 or 65. You can access it earlier (maybe from 55?) if you want but you would need to check with SL whether that impacts on any special benefits you may have under the policy or if it would trigger a market value reduction. If you ask SL they should be able to tell you if it is a bad idea to take it early.

If you are thinking of an annuity then check out the Moneyhelper annuity quote page or HL's annuity quote page to see what you might get. Other annuity quote engines are out there.

Best annuity rates | Hargreaves Lansdown

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Trundlethwaite

https://forums.moneysavingexpert.com/discussion/comment/81865802#Comment_81865802

Thanks so much, I will be having a look at the annuity calculators .

Im 64 now so not really taking it early if I were to.