annuity problem

A question about : annuity problem

Hi

my wife has a pension that she has not paid into for years and is now able to buy an annuity as she is 55 she can also take a tax free sum ,our problem is this the whole of the pension is worth less than 20k and it is with phoenix with who we are meant to have gauranteed rates, as she still has at least another 5 years of work ahead of her is it worth just moving the whole lot to her nhs pension(still need to find out if we can do this)or holding out for the rates which may be good.

my instict says dump phoenix as they got enough money out of our endowments without spoiling her pension as well,any advice would be gratefully recieved.

thanks

Best answers:

• This thread would be better in the main pensions section as it is off topic for this section. If a moderator spots this, please move it to pensions main.
  Quote:
• It's very important to know the guaranteed annuity rates. They can easily be twice the current market rate, maybe even more. You don't need huge growth if you get two or three times the annuity income for your money!