Annuity - value for money??

[DXX]

I have a small pension PMF to invest in an Annuity or Drawdown very soon.
Looking at taking an annuity at 60 you have to live to around 84 - 87 years old just to break even on the sum invested and that’s with a single whole life, non-increasing annuity.
Fortunately I don’t have to rely on this one but I’m gradually becoming more sceptical the financial sector.
Drawdown fees are ridiculously high for small sums.
Has anybody found a better legal option that doesn’t involve giving too much to HMRC?

 

[TrevorK]

You don't need to make a decision until 75. As pension funds and drawdown pots can be left to your beneficiaries after your death, they can be a tax efficient way of passing on part of your estate. Annuities die with you unless you take out a joint plan.

A recent article is

How do we ensure our children inherit a pension pot?

My husband has a pension pot of around £380,000 which we don't want to use at present and is still being invested. We don't want an annuity as we would like our children to inherit.

www.thisismoney.co.uk

Obviously speak to your pension provider, they can't give specific advise, but be clear on your options.

Also Pensionwise was set up to give impartial guidance.

Pension Wise: free pension guidance | MoneyHelper

Pension Wise is a free and impartial government service that helps you understand the options for your pension pot. Get free pension guidance today.

www.moneyhelper.org.uk

 

[JOG]

You don't need to make a decision until 75. As pension funds and drawdown pots can be left to your beneficiaries after your death, they can be a tax efficient way of passing on part of your estate. Annuities die with you unless you take out a joint plan.

A recent article is

How do we ensure our children inherit a pension pot?

My husband has a pension pot of around £380,000 which we don't want to use at present and is still being invested. We don't want an annuity as we would like our children to inherit.

www.thisismoney.co.uk

Obviously speak to your pension provider, they can't give specific advise, but be clear on your options.

Also Pensionwise was set up to give impartial guidance.

Pension Wise: free pension guidance | MoneyHelper

Pension Wise is a free and impartial government service that helps you understand the options for your pension pot. Get free pension guidance today.

www.moneyhelper.org.uk

Great response! Like @DXX I feel that the Peruvian marching powder snorting brigade in “the city” are the real beneficiaries when it comes to pensions!

 

[Salty Spuds]

I have a small pension PMF to invest in an Annuity or Drawdown very soon.
Looking at taking an annuity at 60 you have to live to around 84 - 87 years old just to break even on the sum invested and that’s with a single whole life, non-increasing annuity.
Fortunately I don’t have to rely on this one but I’m gradually becoming more sceptical the financial sector.
Drawdown fees are ridiculously high for small sums.
Has anybody found a better legal option that doesn’t involve giving too much to HMRC?

Can you transfer it into a SIPP without having to jump through too many (costly) hoops?

 

[TrevorK]

https://moneyhelper.apsmos.com/ViewArticle.html?sp=Sengyourpensionyourchoices-253

Found this leaflet on the web

 

[DXX]

If only I had seen into the future, I should have spent it on fast women and slow cars.
Not much out there now that doesn’t perform any better than a current account with no refund after death.
I’ve left the PMF in the pension for a later decision.