annuity

joesan

I am planning to buy an annuity soon. Is it best to find an IFA? or can it be done online through Hargreaves and landsdown for example. I was thinking getting a joint annuity so when i die money can goto my wife, but in a couple years time she will be able to buy her own annuity. If i happen to pass away will my wife be able to have 2 annuities? My joint one and also her personal one?

Thanks in advance

Cautious_Investor_3

Hi

A few thoughts for you:

1. HL are an IFA
2. The best way to buy an Annuity is generally through an IFA as they will search the market for the best quote for you, taking into account your personal circumstances, requirements and whether you may qualify for an enhanced annuity
3. A good IFA will also work hard to negotiate with the providers to get them to push your rate up
4. You can pay for them via commission or a fee, but if you go direct to an annuity provider you will be no better off as they will just pocket the commission yoour IFA would have recieved
5. Probably not a bad idea for you to have done a bit of homework before you speak to an IFA, an online, real time annuity calculator can be found here:

http://www.!!!!!!.uk/free-services/annuity-calculator/

Finally, no problem with your wife having two annuities.

I hope this all helps.

The Cautious Investor

dunstonh

Threads in the past have found that local IFAs have come in with slightly better terms than HL.

Cautious_Investor_3

dunstonh wrote: »

Threads in the past have found that local IFAs have come in with slightly better terms than HL.

I've seen that happen too, there are a few reasons for it but nice to see the 'local IFA' being able to compete with the HL giant.

The Cautious Investor

dunstonh

I've seen that happen too, there are a few reasons for it but nice to see the 'local IFA' being able to compete with the HL giant.

I think its because many local IFAs are technically bigger than HL. The big networks and compliance companies have more buying power and can get better terms than HL as its the network or compliance company that negotiate the terms. Not the individual IFA (although the individual IFA can as well sometimes get incremental enhancements). Plus, so much focus with HL now seems to be on the DIY side, which is very good. Their advice side seems expensive by comparison (as seen in the thread the other day where they were taking 1.8% commission on an annuity where 1 to 1.5% is much more the norm).