annuity timing issues

Affecting Factors > Timing Issues

If your pension fund comprises of equities, then these can be highly volatile. Within a short space of time, your fund could either fall or rise in value dramatically. The danger is that within the short space of time up to your retirement, your pension fund could suffer a dramatic drop in value, which would be catastrophic to your future retirement.

By the time you reach retirement, it is advisable that your pension fund has been moved into either cash, fixed interest or a safety fund. This move (known as a switch) can be staged over a period of time (say 5 years) so that dramatic fluctuations in the equity markets can be smoothed-out.

Market Value Adjuster (MVA)

If you have either a with-profits personal pension or retirement annuity (the old style personal pension) then you should be aware that currently (at 08/2008) certain companies may still be operating MVA's on with-profits funds. It is important to take advice on this aspect before taking pension benefits.

Your Annuity

Using our service

PAAS

The Pension Annuity Advisory Service is a trading style of Richmond Independent, which is an appointed representative of John Ellis IFA Ltd which is authorised and regulated by the FSA