No annuity - 3K per year from pension plans

Apr 06, 2005 3 Replies

It seems to me that a potential massive votewinner for the Tories (if they are smart enough, which I continue to doubt) would be to pledge: "We will allow you to take £3k per year from personal plans without taking an annuity." I am seriously convinced that the life assurance companies are in league with the government (and tory almost as bad as labour). The fact is annuity returns are little better than the return on the best deposit accounts - where you keep the principal ! Annuities are a scam. IMHO governments (of both persuasions) hate making rich 40 and 50 year olds from inheritance. They want them to keep working to fund all their schemes !



The 3K man


You already can (funds permitting), it's called income drawdown.

Daytona

AIUI you cannot take more from income drawdown than an annuity would pay out. So it seems to me that all income drawdown does is delay taking an annuity, then you might die before taking it and be able to pass it on. I think we should be allowed to empty the fund (gradually and maybe with a few restrictions).

3K

"Daytona" wrote

Perhaps the OP is recommending *restricting* income drawdown to no more than

3K per year??

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