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  • FIRST POST
    • choi
    • By choi 10th Mar 18, 12:20 AM
    • 26Posts
    • 1Thanks
    choi
    Updated Annuity Questin
    • #1
    • 10th Mar 18, 12:20 AM
    Updated Annuity Questin 10th Mar 18 at 12:20 AM
    I want to find out the best option to use my pension pot of 250 k
    I want to find out what is the best option for my wife and I
    I am 66 this year
    My wife will be 60

    its looking like the following are the best options

    Single Life Convential
    30 year Guarante
    3% escalation
    7400 pa

    Single Life Conventional
    100% protect
    3% escalation
    8500 pa

    I have been offered Fixed Term Annuities

    What are your thoughts on these

    I am just looking to achieve an annual income of circa 8 k pa
    Plus
    Ensure my wife receives payments until she is at least 90
Page 1
    • Brynsam
    • By Brynsam 10th Mar 18, 12:38 AM
    • 919 Posts
    • 603 Thanks
    Brynsam
    • #2
    • 10th Mar 18, 12:38 AM
    • #2
    • 10th Mar 18, 12:38 AM
    Any health issues for either of you?

    Single life is just that - pays out for your life only with no benefits for your wife if she survives you.

    Why do you want a 30 year guarantee period and why fixed term? If you are using money from a registered pension scheme, any annuity you buy must be payable for the remainder of your lifetime.

    A 250,000 pot won't buy you 8K a year with a spouse's pension. See https://www.hl.co.uk/pensions/annuities/annuity-best-buy-rates for examples.

    This will help: https://www.which.co.uk/money/pensions-and-retirement/options-for-cashing-in-your-pensions/guides/annuities/buying-an-annuity
    Last edited by Brynsam; 10-03-2018 at 12:43 AM.
    • dunstonh
    • By dunstonh 10th Mar 18, 1:53 AM
    • 92,564 Posts
    • 59,863 Thanks
    dunstonh
    • #3
    • 10th Mar 18, 1:53 AM
    • #3
    • 10th Mar 18, 1:53 AM
    I have been offered Fixed Term Annuities
    Who is offering you these?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • sandsy
    • By sandsy 10th Mar 18, 12:00 PM
    • 1,321 Posts
    • 796 Thanks
    sandsy
    • #4
    • 10th Mar 18, 12:00 PM
    • #4
    • 10th Mar 18, 12:00 PM
    Fixed term annuities are effectively written as drawdown contracts. You choose a level of income and how long it is payable, then a maturity value may be available at the end of the fixed term.

    I think LV, L&G and Canada Life offer them but normally only through advisers?
    • xylophone
    • By xylophone 10th Mar 18, 5:25 PM
    • 25,371 Posts
    • 14,967 Thanks
    xylophone
    • #5
    • 10th Mar 18, 5:25 PM
    • #5
    • 10th Mar 18, 5:25 PM
    You said in earlier posts that you were consulting an IFA.

    Did you explain that you wanted an annuity that would continue to pay out income to your wife in widowhood?

    If so, I cannot see why he suggested a single life annuity .

    You say in an earlier post that your wife is expecting a state pension and a teacher's pension.

    Has she obtained a state pension forecast?

    https://www.gov.uk/check-state-pension

    You are already in receipt of a state pension?
    • choi
    • By choi 11th Mar 18, 5:14 PM
    • 26 Posts
    • 1 Thanks
    choi
    • #6
    • 11th Mar 18, 5:14 PM
    • #6
    • 11th Mar 18, 5:14 PM
    Who is offering you these?
    Originally posted by dunstonh
    Retirement Line
    Canada Life
    • choi
    • By choi 11th Mar 18, 5:20 PM
    • 26 Posts
    • 1 Thanks
    choi
    • #7
    • 11th Mar 18, 5:20 PM
    • #7
    • 11th Mar 18, 5:20 PM
    You said in earlier posts that you were consulting an IFA.

    Did you explain that you wanted an annuity that would continue to pay out income to your wife in widowhood?

    If so, I cannot see why he suggested a single life annuity .

    You say in an earlier post that your wife is expecting a state pension and a teacher's pension.

    Has she obtained a state pension forecast?

    https://www.gov.uk/check-state-pension

    You are already in receipt of a state pension?
    Originally posted by xylophone
    I am seeing the IFA this week

    The above query is based on a quote from Retirement Line
    I assumed single life with protection or guarantee was best option to provide a pension for my wife should I die first

    My wife will get 8k state pension and circa 6k teachers pension
    • dunstonh
    • By dunstonh 11th Mar 18, 5:30 PM
    • 92,564 Posts
    • 59,863 Thanks
    dunstonh
    • #8
    • 11th Mar 18, 5:30 PM
    • #8
    • 11th Mar 18, 5:30 PM
    Retirement Line
    Canada Life
    Originally posted by choi
    Sorry, what I meant is, who has told you these fit your objectives? Is it an IFA or is through reading about them?

    These are valid options but they fit a certain minority So, was just wondering how they got in front of you.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Linton
    • By Linton 11th Mar 18, 5:42 PM
    • 9,373 Posts
    • 9,505 Thanks
    Linton
    • #9
    • 11th Mar 18, 5:42 PM
    • #9
    • 11th Mar 18, 5:42 PM
    I suggest you dont pre-empt your IFA in deciding which pension is best for your needs - that is his job. In choosing some of your options you may be paying for a benefit that you may not want eg a pension going to your estate after both you and your wife have died.

    What you and your wife should do before the discussion with the IFA is to think through what minimum benefit will be needed should you die first. You will need to take into consideration the greater the benefit for your wife after you have gone the less income you will get whilst you are still alive.
    • choi
    • By choi 11th Mar 18, 8:01 PM
    • 26 Posts
    • 1 Thanks
    choi
    Sorry, what I meant is, who has told you these fit your objectives? Is it an IFA or is through reading about them?

    These are valid options but they fit a certain minority So, was just wondering how they got in front of you.
    Originally posted by dunstonh
    A year ago I contacted Retirement Line for Annuity Advice

    He said he would get back in a years time
    Voila

    Im thinking about this option for peace of mind

    Single Annuity
    30 Year Guarantee period
    3% Escalation

    That would provide a sum of 7440 per month escalated
    For my wife or I for 30 years

    Cost 250,000
    Guaranteed Return 231450

    Thats peace of mind
    Cost no worse than 18550
    • Linton
    • By Linton 11th Mar 18, 9:48 PM
    • 9,373 Posts
    • 9,505 Thanks
    Linton
    7440 per year!

    You are guaranteeing until you are both in your 90's? Have you checked whether it would be cheaper to go for a joint annuity when the pension company can stop paying when you both die which may be before either of you are 90.

    The guarantee runs out when Mrs is 90. She may well live longer than that - according to ONS data her chances of doing so are a bit more than 50/50. Another reason to go for a joint annuity rather than relying on guarantees.

    It may be better to drawdown for the first 5-10 years or more and then take out an annuity.

    There are lots of other variations which may be worth considering. The IFA can come up with something designed to your circumstances.
    • choi
    • By choi 11th Mar 18, 10:37 PM
    • 26 Posts
    • 1 Thanks
    choi
    7440 per year!

    You are guaranteeing until you are both in your 90's? Have you checked whether it would be cheaper to go for a joint annuity when the pension company can stop paying when you both die which may be before either of you are 90.

    The guarantee runs out when Mrs is 90. She may well live longer than that - according to ONS data her chances of doing so are a bit more than 50/50. Another reason to go for a joint annuity rather than relying on guarantees.

    It may be better to drawdown for the first 5-10 years or more and then take out an annuity.

    There are lots of other variations which may be worth considering. The IFA can come up with something designed to your circumstances.
    Originally posted by Linton
    The Annuity is guaranteed for 30 years
    If my wife and i die before then it goes to our dependents
    • dunstonh
    • By dunstonh 12th Mar 18, 12:27 AM
    • 92,564 Posts
    • 59,863 Thanks
    dunstonh
    A year ago I contacted Retirement Line for Annuity Advice

    He said he would get back in a years time
    Voila

    Im thinking about this option for peace of mind

    Single Annuity
    30 Year Guarantee period
    3% Escalation

    That would provide a sum of 7440 per month escalated
    For my wife or I for 30 years

    Cost 250,000
    Guaranteed Return 231450

    Thats peace of mind
    Cost no worse than 18550
    Originally posted by choi
    Let the IFA do their job. Dont use limited panels in niche areas sell your products on a non-advised basis. You could blow other better solutions out of the water by doing things before you get the advice.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Linton
    • By Linton 12th Mar 18, 5:20 AM
    • 9,373 Posts
    • 9,505 Thanks
    Linton
    The Annuity is guaranteed for 30 years
    If my wife and i die before then it goes to our dependents
    Originally posted by choi
    If you want to reduce your income in your old age to benefit your dependents who presumably could be retired themselves by the time you go then fine, as long as you have thought it through.
    • AnotherJoe
    • By AnotherJoe 12th Mar 18, 9:53 AM
    • 9,367 Posts
    • 10,325 Thanks
    AnotherJoe
    I want to find out the best option to use my pension pot of 250 k
    I want to find out what is the best option for my wife and I
    I am 66 this year
    My wife will be 60

    its looking like the following are the best options

    <snip>
    Originally posted by choi
    I think the best option would be conservative investments and take out 8k a year from those until you are perhaps in your late 70's early 80's, and then perhaps look at taking out an annuity.
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