Annuity Lump Sum Payment
There is a reasonable chance that you may have heard the terms annuity lump sum payment but in actual fact you will not really understand much about it at all. If you have a work pension then getting this is certainly something you should consider especially in the current climate where people are worried about what may happen should the firm run into problems.
The most common reason for people going for this option is that it does give them that instant cash boost and depending on the type of policy you were on this could be quite a large sum. The only downside of this is that people often plan on using this for their retirement so unless you have good plans for the future it could leave you in a bad situation.
It is a decision that should never be rushed into as the chances are you have spent years putting money into this pot and in an instant it is all gone. Do not base your decision on a sudden urge to spend cash as the chances are you could regret it later on.
This could happen due to various reasons as we never know what is around the corner and needs you to spend a lot of money. In this instance it is good knowing that this nest egg is sitting there so it gives you some comfort that should something go wrong potential help is at hand.
It is also tax free in most instances so you do not have to then worry about losing a chunk of it to the government. This may depend on what the agreement is and indeed what the level is but this is why it is always wise to get the advice of an expert before going ahead and taking out this cash.
You therefore need to spend the time looking for an expert in pensions in your area but make sure they are independent and not linked to the company supplying it. They can then advise you on your best course of action and make sure all of the forms are completed in the correct manner so that his money can then be paid out to your bank account.
One possible reason why people decide to do this is that they see a better opportunity to grow the sum of money elsewhere and want to move it over. This is another reason why you should get this expert advice from time to time as they can see how it is performing and one thing and let you know if you are missing out on some money.
So people take out an annuity lump sum payment due to different reasons but it certainly is a way to release a reasonable amount of cash in a short period of time. Get the right advice before doing so and weigh up every other possibility before you go ahead and complete the paperwork for it to be sent into your bank account.