Montbretia
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I would do a bit of both. Take advantage of the good annuity rates which or may not last, and retain some of the potential upside with an ARF.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.
Got a quote of 5.372% for Level (non-inflating) annuity with spouses 50% pension and 5-year guarantee which seems decent and will probably go with Annuity/ARF split.It’s little-noticed but in the last two years annuities have become much better value, and life and income protection insurance have come down a lot. This is all due to the big jump in interest rates.
I would do a bit of both. Take advantage of the good annuity rates which or may not last, and retain some of the potential upside with an ARF.
This was my experience.Got a quote of 5.372% for Level (non-inflating) annuity with spouses 50% pension and 5-year guarantee which seems decent and will probably go with Annuity/ARF split.
Had a case recently of a client with an 11.1% guaranteed annuity!
I think that’s a bit of a gimmick. You’re unlikely to pass away within five years. I would see if you can get a better rate in exchange for guarantee. These prices are negotiable.and 5-year guarantee which seems decent
They are definitely an option and should always be looked at when maturing a policy, with the pros and cons of both explored.
Had a case recently of a client with an 11.1% guaranteed annuity! A no brainer for that one!
Got a quote of 5.372% for Level (non-inflating) annuity with spouses 50% pension and 5-year guarantee which seems decent and will probably go with Annuity/ARF split.
That was a guaranteed rate that applied to an older contract. Those contracts are no longer available.Wow! At that rate, I'd be very tempted to keep the lump sum in the pot. Mind you, I can't help thinking I'd be wondering about the actuarial opinion on my longevity.
Last time I looked (a few years back) the cost of the 5 year guarantee was very little. But even so, is that cost worth paying?I think that’s a bit of a gimmick. You’re unlikely to pass away within five years. I would see if you can get a better rate in exchange for guarantee. These prices are negotiable.
Otherwise your approach seems great. Good luck!
My recollection is that there are a handful of annuity calculators accessible (and posted here on Askaboutmoney in other threads) without going through an actual quotation process but they're probably just indicative and an actual quote may depend on more detailed personal info and an actuarial assessment of same.Would there be anyway to list the current annuity rates (even rate spreads) being offered by the various providers, similar to the deposit rates. Fees would be good to get too. Very hard to get any useful comparatives for pensions without going through the process each time of getting quotes etc.
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