Can't buy an annuity

[gnawsome]

I have just been told that I could only buy an annuity with money from a pension fund.
In other words I can't buy an annuity for cash. That seems a bit dubious to me but it maybe covered by some rule.
At 87 I understand I can't open a pension fund. Not that I would want to -- Eq Life and the steady reductions by The Pru would steer me away from those options but I've always thought that I might need an annuity at some point and would be able to buy with cash.
Confirmation of the above rule would be helpful

[argoal]

The answer is that you can’t buy a pension annuity using cash outside a pension or SIPP.

However you can buy a Purchased Life Annuity using cash. There are fewer companies that provide such annuities and the company you dealt with almost certainly weren’t one of them..

The good news on Purchased Life Annuities is that they are taxed partly as a return of capital and partly as income. This means that in practice they attract a lower level of income tax than pension annuities.

Below is a link to one company that provide them. Not a recommendation, as I have never used them.

https://www.canadalife.co.uk/retirement ... e-annuity/

[mc2fool]

I have just been told that I could only buy an annuity with money from a pension fund.
In other words I can't buy an annuity for cash. That seems a bit dubious to me but it maybe covered by some rule.
At 87 I understand I can't open a pension fund. Not that I would want to -- Eq Life and the steady reductions by The Pru would steer me away from those options but I've always thought that I might need an annuity at some point and would be able to buy with cash.
Confirmation of the above rule would be helpful

Who told you that?

"Purchased life annuity

You can buy this type of annuity with money that’s not in your pension pot."

https://www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/guaranteed-retirement-income-annuities-explained

https://www.sharingpensions.co.uk/annuity_rates_purchased.htm

[gnawsome]

The answer is that you can’t buy a pension annuity using cash outside a pension or SIPP.

However you can buy a Purchased Life Annuity using cash. There are fewer companies that provide such annuities and the company you dealt with almost certainly weren’t one of them..

The good news on Purchased Life Annuities is that they are taxed partly as a return of capital and partly as income. This means that in practice they attract a lower level of income tax than pension annuities.

Below is a link to one company that provide them. Not a recommendation, as I have never used them.

https://www.canadalife.co.uk/retirement ... e-annuity/

Thanks for that info. It seems as though I used the wrong terminology when making my enquiry.

[gnawsome]

Who told you that?

AV 15:33 on their advertised number for enquiries...