Over 50's club

5 lurkers | 325 watchers

Hanneke Jun 2021 10:40am, 2 Jun 2021 74,734 posts	0 Hanneke Yeah, weird! My dad bought an annuity and died aged 72... Thankfully, it was joined so my 9 years younger mum got it until she died aged 79. Non of my elders have lived beyond 80! No way am I buying an annuity! Altbough the Dutch private pension I paid into for 3 years back before I moved here is an annuity. But: with options: lump sum, lump sum us yearly pay out for 10 years, or life ling annuity... I can have it paid out in 2 years time, as I was expecting to retire aged 58... As 30 years ago things looked very different and I didn't pay into it for 30 years, there is very little there so I have the lump sum, thanks!
Flatlander Jun 2021 10:40am, 2 Jun 2021 2,071 posts	0 Flatlander I am looking into taking an annuity with part of my SIPP because annuity rates appear to be on the increase at the moment. In addition, I have several medical conditions which mean that I'll get an enhanced annuity, increased by 10-20%, so it may be well worth me taking an annuity. Plus, after the Equitable Life debacle, annuities are better protected.
Ocelot Spleens Jun 2021 10:49am, 2 Jun 2021 31,011 posts	0 Ocelot Spleens I have a medical condition that means an annuity is right up my street! Remember all the new rules mean you can take lump sums, whenever you want Actually I have a defined pension from ages ago, a small annuity which I have taken out, with the option of turning that into cash if I fancy it. Then my main big pension that is an annuity but which I fiddled with in terms of cash/shares that went well. I also have a bit put aside in shares that took a hit but is recovering. Luckily, or more correctly, very good advice, when I got made redundant 6 years back, I took out a medical insurance which paid out. Annuities are fine if you have a few options, slightly safer than drawdown.
Diogenes Jun 2021 11:36am, 2 Jun 2021 60,265 posts	0 Diogenes I haven’t really understood the last two pages at all.
jda Jun 2021 11:42am, 2 Jun 2021 10,262 posts	0 jda Annuities have always looked like a pretty shit deal to me, but they do reduce risk. Hitting the poverty line at 93 probably isn't a bundle of fun.
GregP Jun 2021 11:43am, 2 Jun 2021 127,095 posts	0 GregP But surely at 93 your needs are so low that the state pension will cover them?
GregP Jun 2021 11:43am, 2 Jun 2021 127,096 posts	0 GregP I don't understand Wrig's first sentence.
Ocelot Spleens Jun 2021 11:47am, 2 Jun 2021 31,015 posts	0 Ocelot Spleens Statistically I am not going to live a long time. So I have cashed out some stuff, have a small pension right now, work part time, depending on medical stuff will take an annuity or cash later.
Velociraptor Jun 2021 11:47am, 2 Jun 2021 52,890 posts	0 Velociraptor My parents (81 and 82) are working on the principle that if they need residential care, they'd like to be able to afford choice. At least, that's what they told me when I suggested that if it's important to them that their grandchildren inherit their money they should start giving it to them while they're still alive. (IHT time limits won't apply, they don't have that much.)
jda Jun 2021 11:49am, 2 Jun 2021 10,263 posts	0 jda I doubt that living off a state pension alone is much fun at any age, and if you previously had a significant personal pension, it's going to seem spartan. Plus the assumption that the state will pick up any additional care costs.....is an optimistic one.