446735002-Pension-Fix-by-Martin-Lewis

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Annuity Angst: Martin’s TipsHow long will your retirement last?Frankly, that’s the polite way of puttingit, the blunt way is: “when will you die?”And this question is crucial – if youknew the exact answer you could planaccordingly.That’s because with most annuities,once you die, the annuity stops. Soif you’ve just traded in a £200,000pension pot for £10,000 a year andyou die one year in, it’s been a verybad deal as your family won’t see anyof that cash.Sadly, though, there’s no sale oncrystal balls. Instead, to give someguidance, in the UK, a typical man whoreaches 65 lives to 83 and womanto 85. Modern health improvementsmean life expectancy is getting evenlonger. Yet, of course, to be an averageit means many people go sooner, andmany last longer.Do factor in family history, though. Ifyou come from a family who’ve livedinto their nineties then it’s probablyworth exchanging your pension fora normal annuity. Alternatively, if yousuffer poor health or are on death’sdoorstep, you may want to hang ontoyour pension savings for a bit longer,or go down the unsecured pension/income drawdown route, or anothersystem which would allow money to goto your family.If you have a small pension potIf the total of your funds is less than £18,000, you can take your fund as acash lump sum instead of income, with 25% of it tax-free. You must be at least60 but not yet 75, and you have to convert all your pension funds to cash withina 12-month period.8
What if I can’t remember what pensions I have paid into?If you’ve lost track of a pension you had, contact the Pension Tracing Serviceon 0845 600 2537 or visit www.gov.uk/find-lost-pension. This is a database withover 200,000 occupational and personal pension schemes.If you contracted-out of the State Second Pension (formerly known asSerps), you will probably have a personal or stakeholder pension into whichsome of your National Insurance has been paid.If you’re not sure whether you contracted out, contact your pension provideror call the HM Revenue and Customs Contracted Out helpline to find out on0845 9150150.9
Page 1 and 2: Martin Lewis’GUIDE TOANNUITIESSPO
Page 3 and 4: Independence and integrityThis guid
Page 5 and 6: Martin’s IntroTHE BIGMESSAGEYou d
Page 7 and 8: Turning your pension pot into an in
Page 9 and 10: Never simply accept your pension pr
Page 11: For every month you delay buying yo
Page 15 and 16: Tax mattersAnnuity income is taxed
Page 17 and 18: Annuity Angst: Martin’s TipsChoos
Page 19 and 20: Escalating annuitiesIncome grows wi
Page 21 and 22: Stats show how much annual income a
Page 23 and 24: The third way - variable annuitiesA
Page 25 and 26: Capped drawdownIf you have less tha
Page 27 and 28: 3How to ensure you getthe best rate
Page 29 and 30: Pensions companies will have their
Page 31 and 32: Annuity Angst: Martin’s TipsA not
Page 33 and 34: Other benefits to take advantage of
Page 35 and 36: 31Your Notes

446735002-Pension-Fix-by-Martin-Lewis

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