Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • !!!sharon!!
    • By !!!sharon!! 10th Oct 17, 10:23 PM
    • 1Posts
    • 0Thanks
    • #1
    • 10th Oct 17, 10:23 PM
    Annuity 10th Oct 17 at 10:23 PM
    Can someone please tell me what an annuity is and how it affects me - my mum recently passed away and Canada life have got in touch with me about an annuity forgive me but I have no idea what it is I know it's something to do with her pension have tried to find out on the internet but no joy - can someone please shed some light on this
Page 1
    • JoeCrystal
    • By JoeCrystal 11th Oct 17, 7:35 AM
    • 1,406 Posts
    • 864 Thanks
    • #2
    • 11th Oct 17, 7:35 AM
    • #2
    • 11th Oct 17, 7:35 AM
    You may be better off posting on this forum instead. Hardly anyone look into this sub forum.

    • LHW99
    • By LHW99 11th Oct 17, 9:51 PM
    • 1,325 Posts
    • 1,223 Thanks
    • #3
    • 11th Oct 17, 9:51 PM
    • #3
    • 11th Oct 17, 9:51 PM
    Sorry for your loss.
    Until fairly recently, many people automatically bought an annuity with the money from their works pension.
    The money saved in the scheme was handed over to an insurance company who then paid a (usually) monthly income generally for the rest of the person's life, however long or short that was.
    Some annuities however would guarantee to pay out for a minimum of say 5 or 10 years, if they were set up that way at the start. So if someone passed away after a couple of years, their estate would be paid the remaining amount of that guarantee.
    There is also the possibility that if the annuity was set up to pay, say, monthly "in advance" and for example a payment was made on the 3rd, but the person unfortunately passed away on the 6th, then most of that month's payment would have to be returned.
    Or if paid "in arrears" a small balance could be due to the estate.
    • Silvertabby
    • By Silvertabby 14th Oct 17, 2:28 PM
    • 2,880 Posts
    • 4,103 Thanks
    • #4
    • 14th Oct 17, 2:28 PM
    • #4
    • 14th Oct 17, 2:28 PM
    My sympathies.

    As LWH99 sayes, it could be that your mum was overpaid and CL want the money back - but it could also mean that if she died within a certain time of starting to draw the annuity - and if she opted for a guarantee period - then there may be some money due to her estate. Only way to find out is to ring them.
    Last edited by Silvertabby; 14-10-2017 at 6:53 PM.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,627Posts Today

8,270Users online

Martin's Twitter