What will 120000 pension pot buy me

by , 28 Feb 2012

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Hi ericcr

Very difficult question to answer as there are so many variables to consider, and so many types of pension you could opt for.

You can take 25% as a lump sum and then buy an annuity with the rest. For a single male you could expect an annual pension of ?5,000-?6,000 per year for every ?100,000 left in the pot after the lump sum..

As a very rough guide you take ?30,000 as a lump and the remaining could buy you a pension of ?4,500-?5,400, or ?85-?105 per week.

The above is based on a male, single life and level pension. These rates could reduce by as much as 50% for joint life, escalating and guaranteed pensions.

It is almost always best to shop around for your annuity rather than accept what your pension provider offers, as you could increase your pension by as much as 30%. And is such an important decision that you need to take professional advice.

by Bonz1957, 28 Feb 2012

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