Can I Sell My Annuity?

I bought my annuity before the start of the pension freedoms and now they’ve been introduced I like the sound of them much more. I was wondering if it’s possible to cash in my annuity to opt for pension drawdown?

Question asked by Ms S Sonali
Compare Top 10 Annuity Rates
 
Takes approx. 60 seconds
Pension Fund
Date of Birth
Smoker

Answered by Michael Englefield

Unfortunately for those who’ve already bought one and want to change, the government scrapped plans to let people cash in their annuities in 2016. Initially this was going to be part of the new pension freedoms and was due to start from April 2017.

Can I cash in my annuity?

With this now being scrapped, there’s no opportunity to change your mind apart from in the first 30 days following your annuity purchase.

The government felt that there would not be a sufficient market for so-called secondary annuities. The danger from this is that consumers wouldn’t get a fair price from selling their annuity pension for cash.

Was your annuity bought with a pension pot worth less than £10,000?

There may be some hope for those who bought an annuity with the smallest pension pots (those worth less than £10,000).

There are rules in place that allow you to cash in your annuity in such circumstances, but only if your provider is willing to let you. There is no obligation for them to accommodate your wishes. If they do, any payment you receive will be subject to income tax.

Apply for state help

If you’re struggling on a low annuity income, make sure you’re claiming all government benefits that you’re entitled to.

Pension Credit, for example, is a means tested benefit available to pensioners on low incomes. It tops up your weekly income if it’s below £159.35 for a single person or £243.25 for couples.

Yet according to the Department for Work and Pensions, £2.67bn in Pension Credit went unclaimed in 2015/16 – only 65% of people took it up.

Annuity
 
Pension
 
Retirement
 
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Compare Top 10 Annuity Rates
  Takes approx. 60 seconds
 - 
Need help? 
Call us on 

Frequently Asked Pensions Advice Questions

 
I am getting myself up to speed with all the changes in the pension legislation in the 2015 Budget and...
 
What is an annuity? Is this a popular pension to get in...
 
I know with the changes in the budget introducing pension freedom we are now able to access are pension...
 
Someone told me I should consider consolidating my pensions because it makes it cheaper. What is pension...
Need Help? Live chat now and get an instant answer from our Experts...

Neil
Pensions

Victoria
Insurance
Our Latest Reviews
Phil Walker
07/11/2017

Very happy with the advice I received from Jake Beale at Drewberry on my income protection. All sorted in two short easy phone calls.

George Atzemoglou
12/11/2017

Matteo listened carefully to my requirements and came up with an insurance policy that significantly outperformed the best offer I had managed to find in the market. I am impressed by Drewberry and will of course recommend them to many of my friends!

Naomi Scroggins
05/11/2017

Worked with me to get the right solution and was knowledgable and understanding. Felt like I was in very good hands!

We are rated 4.9/5 based on 1273 independent client reviews.
To read more of our independent client reviews click here →
REVIEWS
EXCELLENT
4.92 / 5 Average
1317 Reviews
A
Overall Rating
Jake set up 2 policies for me. The customer service was excellent and he took care of everything.
M
Overall Rating
Very helpful throughout the process!
A
Overall Rating
Rauri helped me to make the right decision and gave me excellent advice. Thank you!
A
Overall Rating
Fast easy end efective
A
Overall Rating
Very pleased with the service from Sam. No pushy sales talk, just good informative and helpful advice.