Annuity.

[egg6447]

i have to purchase a annuity before 70. i have asked the question of my f/a and it never seems the best time to buy. in plain terms is it best to buy when the markets up or down?. regards

[spacefruit]

Where are you resident for tax?

Is it by chance from a SSAS?

If you are Non Resident for UK tax you can export the entire pension pot, though it is only worth it if the pot is quite large, and you remain Non res for 5 years.

Annuities are the evil spawn of financial devils. You are right, there is NEVER a good time to buy. Strongly urge you to index link, (Assuming you are healthy) and survivable to your dependant wife if you are not.

That is if you cannot find another way...

[egg6447]

thanks for that spacefruit. looks like i'm stuck with it . never liked the idea of private pensions. my own investments make more than my 3 pensions. what a scam.

[SoiGirlHunter]

Steer clear of annuities, they are a scam

risk is even higher now in this economic collapse, this is just the beginning

[ChiangMaiFun]

Not so sure about the advice to 'index link it' it all depends - I decided the opposite - and took a higher rate (which remains static) as I figured I'd need the cash more when younger. I worked out that it would take nearly 30 years to 'catch up' by index linking it - but it is a pain. If you are near 70 how long do you expect/want to live? work out an extrapolation of how much the higher figure would take to equal the lower indexed figuer and go form there - good luck.

[PatinBKk]

Index linked and spouse pensions are not worth it,especially at 70. If you are married get a guarantee for 5 or better 10 years so the annuity is guarenteed to be paid for that term even in the event of your death. Linked to the RPI you will loose a considerable monthly amount and will take years to gain back with the minimal increases/max 5%....look at the RIP at the moment especially. Single life/level/10 year guarentee is what I always recommended and for my past customers this has stood them well. Take a look at the annuity tables and excercise your right to the open market option......shop around, most annuity providers have 0800 numbers so wont cost anything. Annuity rates are at an all time low, will they increase, who knows???

[aussiebebe]

Hello, I know very little about pensions, but I want to learn. Could you explain what you mean...

Annuities are the evil spawn of financial devils. You are right, there is NEVER a good time to buy. Strongly urge you to index link,

I was aware of the concept of buying annuities to give 'income for life' - what does index link mean? What's 'the other way'? Also, what companies do Thailand-based expats use to save for their pensions, what would people recommend? I'd appreciate any advice.

[ChiangMaiFun]

Hello, I know very little about pensions, but I want to learn. Could you explain what you mean...

Annuities are the evil spawn of financial devils. You are right, there is NEVER a good time to buy. Strongly urge you to index link,

I was aware of the concept of buying annuities to give 'income for life' - what does index link mean? What's 'the other way'? Also, what companies do Thailand-based expats use to save for their pensions, what would people recommend? I'd appreciate any advice.

Linking it to the Retail Price Index (RPI) but if you take a higher sum (normally 30/40%) you get a level' income - i.e. if you get 500 GBP it stays at that for your whole life. An indexed linked policy may be (DYOR) 300 GBP rising by 15/20 GBP a year until it levels then after that you gain - but it can be 25/30 years until you catch up and after that you are in 'profit'. I took the higher figures because of the time it takes to level - and... IF I invested the difference I worked out that I would be better off. Anyhow it all depends on circumstances etc.

[spacefruit]

Hello, I know very little about pensions, but I want to learn. Could you explain what you mean...

Annuities are the evil spawn of financial devils. You are right, there is NEVER a good time to buy. Strongly urge you to index link,

I was aware of the concept of buying annuities to give 'income for life' - what does index link mean? What's 'the other way'? Also, what companies do Thailand-based expats use to save for their pensions, what would people recommend? I'd appreciate any advice.

Linking it to the Retail Price Index (RPI) but if you take a higher sum (normally 30/40%) you get a level' income - i.e. if you get 500 GBP it stays at that for your whole life. An indexed linked policy may be (DYOR) 300 GBP rising by 15/20 GBP a year until it levels then after that you gain - but it can be 25/30 years until you catch up and after that you are in 'profit'. I took the higher figures because of the time it takes to level - and... IF I invested the difference I worked out that I would be better off. Anyhow it all depends on circumstances etc.

You are all correct to jump on me about index linking. It needs careful examination. We were 'lucky'. without going into details.

However i would suggest that anyone take responsibility for their investments

The 'other way' I alluded to is a pension export scheme for high value pots for non tax residents of UK. I think it works for Aussies too, but i don't know.