Delaying annuity

Yorkie1664

Hi I have £50k in a pension plan. I'm 61, have Parkinson's and intend to retire at 67.I contribute£300/month..I have other savings for retirement.Im just canvassing views on whether to take a staged annuity now with the £50 k (as rates are good)and another at ,67 with the balance or take the whole amount at 67.Theres no right answer but would be interested with people's views.

DRS1

Parkinsons will get you an enhanced annuity. What I don't know is whether the annuity providers just see the disease and give an enhancement or whether they judge the severity of the symptoms and vary the enhancement accordingly. I would assume the latter but I could be wrong. So I'd be thinking waiting till 67 for the whole lot could get a better rate.

The thing only you can know is would you prefer to have the income now before the symptoms get worse? Spend it while you can enjoy it?

Oh and there are the obvious things about what the extra income will do to your tax bill and whether stretching the annuity out by another 6 years will mean it does not cover whatever essential expenses you will have later (when you stop working).