Remove ads

Introducing the LemonFools Personal Finance Calculators

Deferred annuity pension from Prudential

paradigm
Posts: 22
Joined: October 2nd, 2018, 11:45 am
Been thanked: 1 time

Deferred annuity pension from Prudential

#228789

Postby paradigm » June 11th, 2019, 9:11 pm

I have a small deferred annuity pension entitlement from an early employer which I would now like to draw on. Out of the blue, I have received a quote from Prudential to whom the company scheme was transferred many years ago.

The proposed terms seem reasonable however I honestly find it difficult to judge (or to calculate). My question is: Are Prudential likely to have any flexibility on the level of proposed payments, i.e. would it be worthwhile discussing with them? Without alternative quotes to hand I would be struggling to bargain for a better rate! I appreciate the level of payments would increase the longer I defer however I do not wish to defer any longer.

Any advice would be much appreciated.

Alaric
Lemon Quarter
Posts: 2984
Joined: November 5th, 2016, 9:05 am
Has thanked: 7 times
Been thanked: 607 times

Re: Deferred annuity pension from Prudential

#228793

Postby Alaric » June 11th, 2019, 9:26 pm

paradigm wrote:Are Prudential likely to have any flexibility on the level of proposed payments, i.e. would it be worthwhile discussing with them?


It wouldn't do any harm to ask. At the very least you ought to be able to vary the mix between immediate cash and lifetime income, start payments early for a reduced amount or start them later for an increased amount. If the lifetime income is small enough, you might be allowed to take a (taxable) lump sum in substitution.

genou
Lemon Slice
Posts: 308
Joined: November 4th, 2016, 1:12 pm
Has thanked: 26 times
Been thanked: 77 times

Re: Deferred annuity pension from Prudential

#228871

Postby genou » June 12th, 2019, 10:03 am

paradigm wrote:I have a small deferred annuity pension entitlement from an early employer which I would now like to draw on. Out of the blue, I have received a quote from Prudential to whom the company scheme was transferred many years ago.

The proposed terms seem reasonable however I honestly find it difficult to judge (or to calculate). My question is: Are Prudential likely to have any flexibility on the level of proposed payments, i.e. would it be worthwhile discussing with them? Without alternative quotes to hand I would be struggling to bargain for a better rate! I appreciate the level of payments would increase the longer I defer however I do not wish to defer any longer.

Any advice would be much appreciated.


Get yourself an open market quote. One place to start is here : https://www.moneyadviceservice.org.uk/e ... /annuities

Alaric
Lemon Quarter
Posts: 2984
Joined: November 5th, 2016, 9:05 am
Has thanked: 7 times
Been thanked: 607 times

Re: Deferred annuity pension from Prudential

#228887

Postby Alaric » June 12th, 2019, 10:52 am

genou wrote:Get yourself an open market quote.


That might not be possible if it's an ex-employer defined benefit scheme where the retirement benefits are expressed as a lifetime income.


Return to “Pensions - Practical Problems”

Who is online

Users browsing this forum: No registered users and 2 guests