Standard Life Pension

pennypuppy

My dad paid into a company pension and it's all paid up and they have sent him out a quote. Its got 5 different options all with a 20k lump sum to start with then between 5k - 7k a year after , the 4th and 5th scenarios allows him to enable my mum get something if he dies. He is thinking about doing this one. Are these his only options, he wishes he could just take the whole 80k now?He really doesn't trust pension funds.

dunstonh

He really doesn't trust pension funds.

With respect, thats a daft opinion to have. Its held under a trust and unit linked pensions are about as safe as you can get with the only risks being where the money is invested.

His problem is more likely to do with lack of knowledge and assumptions.

he wishes he could just take the whole 80k now?

Of that 80k, possibly as much as 40% of it (or more potentially) came from tax relief and tax free growth. So if he had put it into something he could access more easily, the figure would be much lower.

Standard life annuities are not that great. He should look at the open market option and get an IFA to see him. With that figure, income drawdown is a possibility but its possible his opinions and assumptions may eliminate that unless he is willing to listen.

EdInvestor

If he doesn't like the aidea of pensions he should consider income drawdown - Standard Life does this, but it's cheaper in a SIPP.

Otherwise he can compare annuities here:

https://www.fsa.gov.uk/tables