Cash for annuity UK

[Divingdud]

The UK Budget news will now allow a pension annuity to be cashed in and in the weeks prior to this, experts in money matters have predicted pensioners rushing out to blow most or the lot on expensive 'dream' Italian sports cars.
Here's a thought, will we now see more pensioners sporting, in the pub, as the arm holding the drink lifts and the shirt cuff drops back, precious metal rolex watches?

[FlyingMoose]

HA! I was thinking I'd have to report this topic as spam, but it's actually a real post! xD

[Divingdud]

Originally Posted by FlyingMoose

HA! I was thinking I'd have to report this topic as spam, but it's actually a real post! xD

Of course it's actually a real post, but being an older guy I had to refer to the Internet for 'spamming' It seems to be unsolicited advertising ?
I'm retired not selling anything, still an active collector of rolex watches like others on this forum and as the heading is 'General' I made the post as up-to-date UK info, perhaps a little tongue in cheek, but hoping to get some interesting responses.

[njbeizai]

The value of a pension is just value = payment/rate since it's really a perpetuity. Meaning it's actually cheaper to do this. Smart move for the government.

[GolfPunk]

Originally Posted by Divingdud

The UK Budget news will now allow a pension annuity to be cashed in and in the weeks prior to this, experts in money matters have predicted pensioners rushing out to blow most or the lot on expensive 'dream' Italian sports cars.
Here's a thought, will we now see more pensioners sporting, in the pub, as the arm holding the drink lifts and the shirt cuff drops back, precious metal rolex watches?

I'm a UK Financial Adviser...people need to get professional independent advice before making any snap decisions relating to their Annuities and Income Drawdown. Individuals must plan for their financial future including a consideration of increasing longevity.

Also, this 'selling of annuities' won't come into play until April 2016 so lots of legislation to go through this next 12 months.

In essence, if someone originally had a pension pot of £150000, they may be in receipt of £9000 per annum income for the remainder of their life.
The new proposals are for annuity selling, so a company could 'buy' the annuity income from a pensioner, but I'd suggest rather than the £150000 value, they may offer circa £100000 for it, which will be taxable at the persons marginal income tax rate.

We will have to see exactly how this pans out in due course.

[tkerrmd]

Originally Posted by GolfPunk

I'm a UK Financial Adviser...people need to get professional independent advice before making any snap decisions relating to their Annuities and Income Drawdown. Must plan for increasing longevity.

wise advise my friend!!

[SC11]

My pension's in watches

[Divingdud]

Originally Posted by GolfPunk

I'm a UK Financial Adviser...people need to get professional independent advice before making any snap decisions relating to their Annuities and Income Drawdown. Individuals must plan for their financial future including a consideration of increasing longevity.

Also, this 'selling of annuities' won't come into play until April 2016 so lots of legislation to go through this next 12 months.

In essence, if someone originally had a pension pot of £150000, they may be in receipt of £9000 per annum income for the remainder of their life.
The new proposals are for annuity selling, so a company could 'buy' the annuity income from a pensioner, but I'd suggest rather than the £150000 value, they may offer circa £100000 for it, which will be taxable at the persons marginal income tax rate.

We will have to see exactly how this pans out in due course.

A pension can be held mutual between husband and wife, with the pension continuing for the second spouse, so one of the questions might be;- when it comes to cashing the annuity will both have to agree? although the pension might have originated through the job held by one partner. As we get older, the general advice seems to be;- " you can't take it with you" this, I suppose, means watches as well!

[GolfPunk]

Originally Posted by Divingdud

A pension can be held mutual between husband and wife, with the pension continuing for the second spouse, so one of the questions might be;- when it comes to cashing the annuity will both have to agree? although the pension might have originated through the job held by one partner. As we get older, the general advice seems to be;- " you can't take it with you" this, I suppose, means watches as well!

I believe you are referring to an Annuity with 50% Spouse provision on death of the annuitant? In this case, the Annuitant remains the sole annuitant and owner of the annuity. A spouse could have their lawyer take the annuity into consideration as part of a divorce settlement though.

[Vivalas]

I'm an IFA myself and no doubt car sales, holidays, watches et al will all boom in the next few months!!

The long term repercussions won't be realised for some time to come. Most of the people desperate to cash in and spend their pots will be the ones that can't afford to cash in and spend their pots!!!!

[patek.wis]

its an easy math equation.
kind of like the 'we buy your structured settlements.'

sorry, id rather factor inflation, tax savings, etc. and come up with a real dollars comparison.

when someone offers you 100k for your 10k a year for 15 years, you are buying their time even though it seems they are buying your annuity. there is no reason for someone to take on risk or invest time to come out even.

All transactions are just consideration exchanging. It takes the person with the calculator to see which one is worth more in reality.

[doubleinfive]

Cash for precious metals? Why not? A life annuity will cease at your death but you can definitely take your Rolex with you to the other side...