The Lemon Fool

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.

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.

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

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.

Thanks for all the suggestions.

After discussing by telephone I decided to accept the Prudential quotation.
According to the particular company scheme rules there were no options available to me apart from further delaying the commencement of payments.

May be a little late now but it may be worth knowing what the revaluation rates are for deferring taking it. I had a client of mine a few months back where it was revaluing by 7% after normal retirement age and he didn’t need the income so we held off

That was with prudential although it’s the scheme rules that are important rather than who holds it