Drawdown on a an annuity
Discussion
The Spruce goose said:
Hi, My mum has about 120k annuity from my deceased dad.
With the rules changing in April to allow a market for them, I just wondered what best options are . She wants to get 20k out for house repair and debt clearing.
Is it advisable to seek a FA or just work out best options myself?
Is it this April, I thought it was being put back a year?With the rules changing in April to allow a market for them, I just wondered what best options are . She wants to get 20k out for house repair and debt clearing.
Is it advisable to seek a FA or just work out best options myself?
http://www.pensionsage.com/pa/Government-to-delay-...
http://www.moneywise.co.uk/news/2015-07-08/summer-...
http://www.moneywise.co.uk/news/2015-07-08/summer-...
Edited by PurpleMoonlight on Wednesday 17th February 16:39
PurpleMoonlight said:
http://www.pensionsage.com/pa/Government-to-delay-...
http://www.moneywise.co.uk/news/2015-07-08/summer-...
OK Thanks looks like will have to wait then..http://www.moneywise.co.uk/news/2015-07-08/summer-...
Edited by PurpleMoonlight on Wednesday 17th February 16:39
The Spruce goose said:
Hi, My mum has about 120k annuity from my deceased dad.
She wants to get 20k out for house repair and debt clearing.
Just take me though this slowly. She wants to get 20k out for house repair and debt clearing.
Do you mean it was originally a capital sum of £120k and was used to buy an annuity? What annual income is it giving to your Mum? Is that the same income your Dad was getting or a lower amount? And what is she going to live on if her annuity income is reduced by, say, 20%?
Have you taken account of the fact that "spending" her pension may reduce her eligibility for local authority care/benefits?
Of one thing I am sure, the thing you are/she is trying to achieve will not be permitted without very clear Independent Financial Advice. This has "proceed with great caution" stamped all over it.
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