Anyone know if you can buy an annuity before you are due to retire, eg 53 when looking at 58, and get the 'today' rate against what you buy? I ask as rates are very good right now, you can get a 10yr one that is more than twice the average of a regular Vanguard type forecast of 4% annually
I do not think you can do anything with your pension like transfer it to an Annuity until 55. I am looking at my options myself as 55 in January. Plan to work another year or so beyond that. Who is the Annuity with?
If you buy an annuity now it will start paying out now and the calculated payments will be based on a term that runs from now to the err... expected end date. So the rate you get is set at the point of purchase. I'm just on the very cusp of retiring and my annuity is been processed as we speak... or I hope it is as Nest have been a little slow in transferring my funds held with them. And yes my action was prompted by the high interest rates - so some of us do have to be thankful for Liz Truss. By the way it's the 15 year gilt yields that are the main driver of annuity rates and not the interest rates per se. I'm going with Scottish Widows.
Maybe worth you checking Aviva - for me the monthly payout was 10% higher - but can not guarantee its like for like with the Scottish Widows illustration
Yep always worthwhile checking across the board as it can vary quite a lot depending on your needs. I've gone for index linking and continuing to payout an (reduced) amount to my partner.
Anyone over 55 yrs in the UK can buy an annuity but you need £5000 in an existing pension pot (source L&G).
Guy I know was telling me he’s just taken a 5yr one with future lump sum back and I couldn’t believe what he said he got. Even large providers like LV (when I searched online) are offering against 450k fund 10yr 34kpa with 250k back at the end. Seems like free money to me!
We got a financial adviser in to sort the best way to amalgamate my wife’s various pension pots with an annuity to give her an income. 55 opens up index linking but adds additional costs to annuities.
I’ve got a final salary pension and fairly keen to get it out into either regular pension or shorter term annuity. I don’t expect to live 25 years or more in retirement so why not spend as much as I can in 5-15! House can support the missus after I’ve shuffled off
are you still paying in to the Final Salary Pension - or is it an old scheme? If its Old - you can move it to any other pension scheme - but not get the ££ till 55...
Old one, I know that it can be difficult to get out of some as the ‘best advice’ tends to be leave where it is. But I won’t have a long retirement. Lifestyle over 30 years, recent heart condition, so want to get access to it and use more while I can use it.
I hear you... I am the same stature - some health issues... and 25 years of working 80+ hours a week .... all take a toll. I honestly did not expect to live this long
Have you considered utilising the Lasting Power of Attorney between you? It makes things a whole lot easier in an eventuality, I’m advised.
Just switching everything across to Cheltenham IFA, best of those I spoke to. Worth giving them a call seeing as you're local. Speak to Ben Burgess let him know that I reccomeded him Spoke to them, high rates, esp cost of entry, not all of market and exit penalties. Bad press recently too. Feeling slightly guilty, agent is an acquaintance of my partner, but not really, it's my future they'll be messing with.
