The perils of looking into the future…..
In August 2015 my client, Mr Fred Goggins, invested £38,000 in an annuity. This would give him a monthly income of £90 for the rest of his life. He was in his early 60s.
It didn’t look like a good deal even if he reached 90, but, very sadly, he died in April 2016, less than a year after handing over his money. And that was that. The investment was for life. And even though his life lasted a mere 10 months since he invested his £38,000, he has now lost everything that was left, and his poor wife will get nothing. The annuity company keeps his money.
When we draw up a will, we often discuss assets with our clients. Now we are definitely not Financial Advisors but we usually recommend that a client who wants to boost their pension should certainly take independent professional advice. It may cost you £400 for an hour or two, but it could make you a lot more, and prevent you from running the risks that the late Fred Goggins took.