2 years i got a quote from Phoenix on this plan and for a fund of 25K they would give an annuity of £1,200 pa.  2 years later the fund is now worth 30K and they are now quoting £940 pa.  When i questioned this i was told annuity rates had dropped and further more it was now down to £890pa. 

Ok i know rates have dropped but im 2 years older and the fund has increased by another 20% .  Does this sound reasonable? I suspect they want me to transfer out because when im 65 the GMP kicks-in and thats work out about £2,500 pa - a lot better then current rates.