Q: What if my client regrets purchasing an annuity?
Purchase is usually a ‘once and for all’ decision, warned Mike Morrison, head of pensions development at Axa Wealth.
However, he said temporary annuities might offer greater flexibility and there is growing innovation that might allow the purchase of one annuity type to be converted into another, for example a temporary into impaired life annuity.
There is also a 30-day cooling off period when a client can change their mind, according to Katherine Oxenham, business development director of Annuity Direct.
The new annuity provider must return all the funds to the original pension provider, she said, and the client must also return their tax-free cash, if they have received it.