I used unbaised as reference but also checked out the google reviews &, of course, their own web site. I always think a lot can be gathered about the 'feel' of a company from their web site. My initial aim was to lump all my savings & investments & pension pots into one great lump and buy an annuity which would have meant I could then just get on with retiring and getting pretty well paid monthly for it. I was however convinced this may not be the best approach at least from a tax perspective and, of course, from the ongoing percentage cut perspective for the FA... And I think this is why they don't particularly like dealing with just one off pension pot transactions because they only get a one off fee rather than a steady incoming which must be much better for running a business. You could always do the work yourself and try the governments own advice service. I have no experience of dealing with them but it's an option. https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise
As a side question - why are you all looking at Annuity's To me - in my simplistic view - the Company calculates how much its likely to pay out over the term based on your age / risk and then says OK we can gain X interest - compound - factors all that in divides the estimated grown pot by the number of payments and then reduces it by a factor so they make profit. All well and good if you live to the calculated age or live longer... but if you drop dead 5 years in maybe you have taken just 100K of your 500K you put in... and then the pension company keeps the rest... Is it not better to just keep the money invested in the pension and take your monthly amount..... doing the same sort of calculations as the annuity provider ... but the capital is still available in the event of an early death?
I can only give answers for myself as others may have different reasons but what is great about annuities is that the income is guaranteed. And if you choose the option can also be index linked. As mentioned before I don't want to have to worry about where my pension pot is best invested and then dealing with the company to chop & change that. Remember that pension pots are invested in the market, which an go down as well as up, but annuities are invested in gilts. The recent increase in interest rates has also increased the annuity rate making the guaranteed monthly payment noticeably higher. You are, of course correct, that if I peg it in three years time I loose all my money, but by then the money is of no use to me anyway In my case I have no dependants to inherit the money and my better half will continue to get half payments.
Also bear in mind that once past the age of 75 you will probably not need a lot of money to live on because you won’t be buying new bikes of cars or be travelling round the world on holiday. I cannot see the downside to drawing down 25% of your pension pot at 55 tax free. Every other method you will pay tax on it.
You can buy short term annuities with a cash balance so get best of both worlds. As said above, when I researched this it seems I could get a really good ‘salary’ for 10years and have spent less than half the pot, way less. Guaranteed income and guaranteed return to then choose the next 10 years
But won’t you then get taxed on what your annuity pays you? Any annuity you buy the company involved will be making money from it one way or another.
It’s income so I expect to be. How is that different to drawdown pension or DB pension? Whatever happens, HMRC want their point of flesh and pint of blood…
If you draw down 25% tax free and then put it into a short term annuity and pay tax on the income from it, then just work the figures out first.
Yeah I would have to stop working to make this worthwhile. And that isn’t likely until 58 so a few years, unless I use the 25% to clear remaining mortgage, in which case I’d be more likely to leave the funds alone and go down to three days a week. Free healthcare and life insurance is a big draw after my health issues recently.
What’s right will be different for everyone. There is no definitive right answer as all circumstances and funds are different. Just make sure you look at the tax consequences of what you wish to do. My parents generation retired early usually through no choice of their own and were recompensed well to do so. It’s not the case anymore.
I've few older friends that did very will in the BBC clearout. Few others did really well out of early retirement offers from utility companies, golden handshake and final salary.
I’ve seen some people retire too early just as some do too late. Retirement needs to be a lot more than just stopping going to work.
One of my old employers in academia, sent people on a week long course to prepare them. I can imagine it putting a huge strain on relationships.
Its why I want to get accessibility while working less and less. I need work, or at least to be busy. Or I’d sit around and do nothing all day
I'm in a similar place. Some parts of work I still need. I've had 8 weeks away in our new French house this year including one 3 week spell. I haven't had three consecutive away from work since I left school 42 years ago. It was great.
You’ll like the new law the French jave passed (1st stage) then that essentially would mean UK owner in France can stay as long as they like.
Not quite the case from my information. You could stay for 6 months without needing a visa if you own a home there and then have your 90 days in 180 afterwards. But the downside is if i do it continuously they might consider me tax resident.
Yes, but means you could do tm France, 3m Spain and 3m U.K. or somewhere else It’s why we need big pension pots
I know I have said it already but pension pots need using to do all the things you want before you hit 70. It’s why our France house happened now. 70 was the age where both my father and father in law started having health problems that took over their lives.
I withdrew the 25% and put it into a 1 year NS&I bond. They've withdrawn them now as they were oversubscribed at the rate I got. As you say, tax avoidance is a biggie as well as enjoying one's pot before it's too late!
