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Pension. When to take, what to do.

A relative is within 2 years of retirement.

He has multiple pensions (3?) with different firms. Private and Company. I believe all are money purchase.

Is it better to take the different pension funds and contribute to one Annuity? (Economies of scale -v- eggs in one basket?)

I guess he should be picking a date when the stock market is high to actually buy the annuity. Is it legal/possible to go early if it were felt the stock market was likely to drop or to delay if it was felt the stock market was likely to rise?

What other things should someone within 2 years of taking a pension consider?

TIA.

(and hello Mr Raygun)

Reply to
toad
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Check out the annuity rates here for both options:

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Annuity rates tend to follow gilt yields more than stock market prices. gilt yields tend to be high when interest rates are high - My guess (and it can be no more than that, is that we are near the top of the interest rate cycle)

Where are the current funds invested ? It is normally heard advice to switch gradually from stock markets to more stable investments as retirement draws near.

Some random pension links:

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Reply to
Miss L. Toe

Don't know if it's possible, I'd ask the annuity brokers that -

Annuities can be taken between 50 and 75 on personal pensions.

He needs to read up on the basics. Good guide here -

Loads more links to official information on my webpage

How much money he needs to cover minimum living standards.

Income drawdown, which gets around the entire problem created by annuities.

Then ask again !

Daytona

Reply to
Daytona

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