pension information please

What new rules are they ?

I'd imagine it's down to the pensions terms & conditions which are based on the legislation for their particular type of pension. For personal pensions you can take 25% as a tax free lump sum, the rest must be used for income drawdown or an annuity.

That's the eternal question only they can answer. All that can be done here is to tell you what things they need to consider to be able to make that decision. Can they make better returns on the tax free lump sum compared with using it to purchase an annuity ? Search the archive as the issue has been discussed in the past.

There's some links to various sources of information on my webpage, once you've got a clearer idea of the type of pension

Daytona

"Tom" wrote

Can you/they tell us how much longer they will live for?

These rules aren't new.

Yes.

It's the only option available to them.

Except if you wish to maximise the pension, you are better off with using the Tax free Cash to purchase an additional annuity (CPAs have no Capital Content). Annually in arrears gets you the best pension rate; annually in advance is the worst rate. However, timing of the payments can be important if you are near any of the income tax thresholds.

Thanks for all the information

All the best

Tom

In message , Doug Ramage writes

But annually in arrears (with no proportion) means you wil always lose the last years payment.

John Boyle

Even if Guaranteed 5, Guaranteed 10, or Capital Protected?

In message , Doug Ramage writes

True!,

Please delete the word 'always' from my post and insert 'sometimes'!

Thanks for the info :)

Tom