No advice from ifa. Re gars

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
13 replies 988 views
FARJARDOFARJARDO Forumite
20 Posts
Hi all,
approx 8 years ago an ifa anvised me to switch my 3 personal pensions,when i saw what comission he was to recieve i had second thoughts. Years after i find i have gars. On all these policies (not advised at time of these valuable options). Having talked to the ins. Companies direct i now find that he will recieve comission on all my work when i take my pension.what a shock! I,ve had no advice,no ongoing contact,would appreciate any advice.
Thanks
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Replies

  • dunstonhdunstonh Forumite
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    Having GARs is not grounds alone for not doing a transfer. Often GARs are only available at certain ages or on certain terms. I had one recently that only paid a GAR if the pension was paid annually in arrears with no guararantee period. Totally pointless GAR that was never going to apply. Some GARs are also quite low. So, whilst a GAR puts you on guard, it doesnt rule out transferring.
    Having talked to the ins. Companies direct i now find that he will recieve comission on all my work when i take my pension.what a shock! I,ve had no advice,no ongoing contact,would appreciate any advice.

    Use an IFA to do the work and that new IFA will be paid it. Its not as if you are paying the commission. Thats even if a commission exists. Many plans have no commission payment to the IFA and the provider keeps it for themselves, even if the IFA does the work and the illustration shows an amount on it.
    would appreciate any advice.

    best place to get it is an IFA.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • FARJARDOFARJARDO Forumite
    20 Posts
    Thanks for reply,
    3 policies,min.9.3 max 10.2 at 60.
    I have ages 60,65,70,to retire.i have talked with the 3 companies who have said i can take said pensions at 60 with guarantees,min 9.1. Two have confirmed in writing ,i am waiting for the other.
    I will find a new ifa.as advised. Any comments would be welcome.
  • EdInvestorEdInvestor
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    With GARs like that it would appear to be a no brainer.Any reason why it might not be?

    You could try one of the specialist retirement \IFAs for a potantially higher standard of advice.

    https://www.williamburrows.co.uk
    https://www.annuity-bureau.co.uk
    https://www.annuitydirect.co.uk
    Trying to keep it simple...;)
  • FARJARDOFARJARDO Forumite
    20 Posts
    Thanks edinvester,
    i will follow up all advice.for all who are in the same boat please check all your policies as it can make all the difference.one of the companies told me by phone that i had no gars,i asked for this in writing and low and behold i have got a gar.a must,everything in writing,and start early.:d
  • dunstonhdunstonh Forumite
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    With GARs like that it would appear to be a no brainer.Any reason why it might not be?

    We don't know but annually in arrears with no guarnatees could be a good reason.
    You could try one of the specialist retirement \IFAs for a potantially higher standard of advice.

    or potentially lower standard of advice.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • FARJARDOFARJARDO Forumite
    20 Posts
    I do have one that states annully in arrears value 107000,if I take it at 60,I,am good health wise,if I make it to 72 I,ll get my money back.9.3% or any other advice?
    Thanks
  • dunstonhdunstonh Forumite
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    I do have one that states annully in arrears value 107000,if I take it at 60,I,am good health wise,if I make it to 72 I,ll get my money back.9.3% or any other advice?
    Do you have dependents? Annually in arrears with no guarantees means that if you die in 11 months, then not a penny is paid out ever. You have to weigh up whether a fund of £107,000 being paid annually in arrears with no guarantees is worth the risk. That decision will depend on your other assets and income provisions and what you think of your dependents.

    You could also ask what rates they give for monthly and with guarantees (unlikely they will offer value protect but they should offer the usual 5 or 10 year guarantee). Its possible that they have a guarnateed annuity rate for those options and you have only been given the default so far.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Great advice,
    this policy is with scot.equitable,do you know if they are flexiblethanks;)
  • dunstonhdunstonh Forumite
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    Last Scot Eq one I did only offered the guarantee on annually in arrears. It was only a baby fund and not the main retirement income so we accepted it. Had it been the primary income we wouldnt have done.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thanks dunstonh,
    alot to think about?
    When I get a new IFA i,ll put over all these points.:rolleyes:
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