Montbretia
Registered User
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- 40
Hi,
Wife approaching 70 with a pension pot of 200k (after 25% tax free sum). Presumed ARF was the way to go but an annuity quote of 10k per annum (with 50% to surviving spouse upon death) got us thinking. It's equivalent to the 5% yearly take from an ARF, obviously without the possible increasing value of the ARF going forward, also with inflation decreasing the spending value of the annuity. On the other hand, it takes away the various charges on the ARF which could be 1.5% annually from what we've read. Thoughts welcome.
Wife approaching 70 with a pension pot of 200k (after 25% tax free sum). Presumed ARF was the way to go but an annuity quote of 10k per annum (with 50% to surviving spouse upon death) got us thinking. It's equivalent to the 5% yearly take from an ARF, obviously without the possible increasing value of the ARF going forward, also with inflation decreasing the spending value of the annuity. On the other hand, it takes away the various charges on the ARF which could be 1.5% annually from what we've read. Thoughts welcome.