Immediate Needs Annuity

fred246
fred246 Posts: 3,620 Forumite
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in Pensions, annuities & retirement planning
I am trying to sort out of the finances of an elderly relative that I have power of attorney for. I have enlisted the help of a financial adviser. He has told me that I don't want an Immediate Needs Annuity but that he can't help me unless I get a quote for one. He says the regulator insists on it. It all sounds a bit strange. Can anyone explain?

Comments

  • xylophone
    xylophone Posts: 44,387 Forumite
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    I am mystified!

    Is your relative in need of a care home?

    https://www.ftadviser.com/2015/06/11/pensions/annuities/getting-to-grips-with-immediate-needs-annuities-Kk30eC7jC9jCQTuR1qSJKI/article.html

    https://societyoflaterlifeadvisers.co.uk/
  • fred246
    fred246 Posts: 3,620 Forumite
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    edited 10 July 2017 at 9:06PM
    The adviser is a SOLLA. SOLLA doesn't give any details of who funds them. I wondered if SOLLA is funded by people who sell immediate care annuities. There is a lot of paperwork to fill out asking for a quote for something I don't want. Yes they are in a care home.
  • Keep_pedalling
    Keep_pedalling Posts: 16,617 Forumite
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    How do you know that an INA is not the best option for your relative if you don't know the costs?
  • fred246
    fred246 Posts: 3,620 Forumite
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    I thought I didn't want one and the adviser said it would be too expensive. He then said it was a regulatory requirement that I get a quote which didn't sound right to me.
  • xylophone
    xylophone Posts: 44,387 Forumite
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    You have consulted an IFA as PoA for your relative so as to determine the best way of managing his finances.

    The possibility of an INA has been discussed. You don't want one and the IFA thinks that it would be unsuitable on the grounds of cost.

    Nevertheless, the IFA thinks that it would be a good idea to obtain quotes (the last I heard there were only three providers) in order to show that the possibility was considered?
  • badmemory
    badmemory Posts: 7,788 Forumite
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    Are we actually talking about life expectancy here? IFAs normally seem to like these, which suggests to me that your IFA is having to dot the i's and check them out even though he (or she) thinks that they will not give good value. As in pay for x years when life expectancy is almost certain to be x-5 years.

    Only you can know this. What do the doctors say? Have you asked for a realistic prognosis?
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