Why Can't I Transfer My Old Fireman's Pension?
Question asked by PD Berry
My pension says it has a guaranteed annuity rate, what does this mean and is there anything I should be doing?
As the name suggests, a guaranteed annuity rate means that your retirement income is guaranteed to be at a certain percentage of the accumulated fund. These rates were usually offered on older personal pensions sold in the 1980s and 1990s.
Guaranteed rates can be extremely valuable. If your pension provider offers one, you may get a much higher income than you would if you bought an annuity elsewhere (an annuity transfers a pension pot into a guaranteed lifetime income).
However, some schemes only allow you to take the guaranteed rate on a set retirement date, so you might not qualify if you want to take your retirement benefits before or after this date.
Remember too that other terms and conditions will vary depending on your scheme, so it’s still worth comparing the annuity rates available elsewhere, particularly if you have a health condition and might be eligible for an enhanced or impaired life annuity.
Any guaranteed annuity rates offered will be lost if benefits are transferred to an alternative pension provider.
If you want to find out more about guaranteed annuity rates, you should contact your pension provider or for pension advice one of our financial advisers can help.