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  • FIRST POST
    • PaulCooper
    • By PaulCooper 13th Jun 19, 9:28 AM
    • 209Posts
    • 59Thanks
    PaulCooper
    Section 32 sanity check
    • #1
    • 13th Jun 19, 9:28 AM
    Section 32 sanity check 13th Jun 19 at 9:28 AM
    I have a section 32 policy that is now with Aviva. The previous providers have confirmed the policy benefits from a GAR of approx. 9.6%. I'm 18 months away from being 65 (the only date that triggers the GAR). I have always assumed it would be a 'no brainer' to draw this pension on the said date.
    Just double checking to make sure that there is no better alternative that I'm missing. Or something I should be doing now preparing Aviva for the payment of this policy
    Policy has a value of >30k there might be terminal bonuses added to this figure, but as they fluctuate a fair amount I'm not taking these into consideration
    Thanks
    Paul
Page 1
    • JoeCrystal
    • By JoeCrystal 13th Jun 19, 9:41 AM
    • 1,877 Posts
    • 1,318 Thanks
    JoeCrystal
    • #2
    • 13th Jun 19, 9:41 AM
    • #2
    • 13th Jun 19, 9:41 AM
    What is the value of the section 32 policy and does the annuity have any index-linking and spousal pension? Considering that the different annuities at 65 vary from 2.9% to 5.1%, it can be a no brainer.
    • cloud_dog
    • By cloud_dog 13th Jun 19, 9:53 AM
    • 4,547 Posts
    • 2,848 Thanks
    cloud_dog
    • #3
    • 13th Jun 19, 9:53 AM
    • #3
    • 13th Jun 19, 9:53 AM
    OP, what is the guaranteed annual pension amount?

    <<EDIT: Tried to delete as this is covered in Joe's post, but am unable to>>
    Last edited by cloud_dog; 13-06-2019 at 10:04 AM.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • PaulCooper
    • By PaulCooper 13th Jun 19, 10:27 AM
    • 209 Posts
    • 59 Thanks
    PaulCooper
    • #4
    • 13th Jun 19, 10:27 AM
    • #4
    • 13th Jun 19, 10:27 AM
    The policy at present has a value of 33k, made up of an initial amount plus yearly bonuses. I have confirmation from them in 2010 that the GAR applies to the 33k.
    The annuity has no index linking
    It does have a 50% spousal pension
    The guaranteed annual pension is about 1100
    Paul
    • wjr4
    • By wjr4 13th Jun 19, 11:22 AM
    • 600 Posts
    • 426 Thanks
    wjr4
    • #5
    • 13th Jun 19, 11:22 AM
    • #5
    • 13th Jun 19, 11:22 AM
    That’s 3.3%? Have you asked them for figures at age 65 if possible?
    • PaulCooper
    • By PaulCooper 13th Jun 19, 5:38 PM
    • 209 Posts
    • 59 Thanks
    PaulCooper
    • #6
    • 13th Jun 19, 5:38 PM
    • #6
    • 13th Jun 19, 5:38 PM
    Yes I realise the 1100 looks low, but that was how the policy was written, unbeknown to me, until reading things on this site & then asking the question---------- 'is there a GAR on this policy', that's when it came out about the 9.6% GAR, which is now applicable to the value of the fund, which is about 33k.
    Hope I'm making sense here?
    Paul
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