In general, annuities have always been considered as a kind of financial product that can not be reversed once it has been established. So can i sell my annuity?
An annuity promises to pay the customer a certain monthly income tax for the rest of his life, in return for a lump sum normally paid by the customer’s pension fund.
Shooting pensions myths
Until now, there was no way to get your money back into a vital pension, if you change your mind at some point.
However, in 2015, the government announced plans to introduce a new system for the sale of secondary pensions. This means that pension funds may even be able to negotiate their pensions for a lump sum.
This policy aims to create the conditions for those who retired before the pension reform of last year and who therefore have no choice but to buy a pension.
What is an annuity?
When does the sale of second-hand annuity begin?
Although the change was originally planned for this year, the government’s last appointment is April 2017.
The delay is meant to give officials, businesses and other financial firms the time to determine exactly how the system will work.
Who should sell your annuity?
When this policy was introduced, the government said it would probably only be appropriate for a minority of people to sell their annuities.
An annuity provides a stream of income that is guaranteed to death, and it is unlikely that the interest of most established companies is to give up.
However, if a person’s financial circumstances have changed, for example if they have a new reliable source of income, they prefer to sell their annuity and receive a fixed payment.
Likewise, persons who feel compelled to earn an income and the other reasonable retirement income may be interested in selling.
One of the most important considerations will be the type of treatment offered. The selling price of a lifetime income is likely to be much lower than the price paid, and middlemen will probably dictate their own rates for such transactions.
The advantages and disadvantages of annuities
Who will buy used pensions?
It is still unclear what will happen with the annuities sold or the amount of demand. So Can I sell my annuity?
The government expects institutional investors to buy them: companies can buy large amounts of used pensions that will provide them with a guaranteed income stream for several years.
Alternatively, annuities could simply be sold to others. In this case, new pension funds may need to combine sellers to some extent, for example, in terms of age, gender and / or medical history.
Can I sell my annuity? The message of the government and the financial experts is that people should not imagine selling their annuities: Once a lifetime income is sold, the guaranteed income guarantee expires. If you’re considering this, make sure you do your homework and ask for advice in advance.