Q. I would like to ask about my Friends Life non-profit deferred annuity, due to be paid out on October 11, 2019. The annuity will provide an annual pension of £2,883 but no-one can tell me the value of the fund. Do you know how I find this out and is it possible to cash this annuity in now?
A. Kate Smith at Aegon says
Thank you for your question. You may be aware that since April 2015, people have greater freedom in how they take their pension savings including the option to cash them in. These freedoms don’t extend to all types of pension savings, and even where they apply, pension providers don’t have to offer all the new options.
I don’t have enough information about the nature of your non-profit deferred, to be able to give you a specific answer. It may not be possible to cash it in. If this is the case, the pension provider won’t provide you with a cash value. It’s unlikely that you would be able to cash in your non-profit deferred annuity once you have started to receive a retirement income after October 11, 2019, so it’s a good idea to fully explore your options now.
I suggest you write once again to the pension provider and ask about your options:
- Is it possible to cash in my non-profit deferred annuity before 11 October 2019?
- If so, how much will it be worth?
- What other options do I have?
- Can I transfer to a more flexible product with you or another provider?
If you are able to cash your policy in, you may have to get financial advice if the non-profit deferred annuity is a ‘safeguarded benefit’ and its value is £30,000 or more, which it’s likely to be. The pension provider will let you know if this is the case.
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