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Downsizing, using difference for annuity

  • 10-05-2021 1:21pm
    #1
    AdrianG08
    Registered Users Posts: 976 ✭✭✭


    Hi

    Elderly relative is currently looking to downsize his house (moving from Dublin to midlands). Hoping to have between 100-150k left over following the sale.

    Can anyone tell me what kind of monthly/annual annuity he could get within the range of the difference (100-150k)? He is 74 this year.

    Thanks a million in advance.


Comments

  • #2
    The J Stands for Jay
    Registered Users, Registered Users 2 Posts: 5,820 ✭✭✭The J Stands for Jay


    AdrianG08 wrote: »
    Hi

    Elderly relative is currently looking to downsize his house (moving from Dublin to midlands). Hoping to have between 100-150k left over following the sale.

    Can anyone tell me what kind of monthly/annual annuity he could get within the range of the difference (100-150k)? He is 74 this year.

    Thanks a million in advance.

    Is this person retired? Annuities are slightly different if not purchased from a pension fund


  • #3
    AdrianG08
    Registered Users Posts: 976 ✭✭✭AdrianG08


    McGaggs wrote: »
    Is this person retired? Annuities are slightly different if not purchased from a pension fund

    Yes, recently widowed. Will be bought with a lump sum of cash from proceeds of property sale.

    Only other income is non contributory state pension. Aged 74.


  • #4
    The J Stands for Jay
    Registered Users, Registered Users 2 Posts: 5,820 ✭✭✭The J Stands for Jay


    AdrianG08 wrote: »
    Yes, recently widowed. Will be bought with a lump sum of cash from proceeds of property sale.

    Only other income is non contributory state pension. Aged 74.

    I'm not even sure of anyone in the Irish market sells purchased life annuities. If they do, the rate will likely be worse than for a pension annuity. Best bet would be to get in touch with a financial advisor, or maybe Irish Life.


  • #5
    AdrianG08
    Registered Users Posts: 976 ✭✭✭AdrianG08


    McGaggs wrote: »
    I'm not even sure of anyone in the Irish market sells purchased life annuities. If they do, the rate will likely be worse than for a pension annuity. Best bet would be to get in touch with a financial advisor, or maybe Irish Life.

    Was looking to use this money as a form of income for life rather than lump sum to be honest, as it would be burnt through.

    Thanks for the info in advance.


  • #6
    BrokenArrows
    Registered Users, Registered Users 2 Posts: 7,498 ✭✭✭BrokenArrows


    You need to consider the expected lifespan of the individual and their current health.

    You would be lucky to get 9k from an annuity on 150k cash.

    If you take the 150k cash you will get 20 years of 7.5k. more of you invest it wisely. Will they live to 95?
    15k for 10 years. Will they live for 10 years?


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  • #7
    rubberdungeon
    Registered Users, Registered Users 2 Posts: 607 ✭✭✭rubberdungeon


    If he keeps the excess proceeds in savings, I would think it would effect his non contributory pension as it’s means tested.


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