Annuity and IFA

evergreen

My husband was 55 last year and we got an IFA through work, first consultation free. He came to see us and found out about annuities for us. He got my husband to write pension companies (there are 2) saying he was our IFA. As my husband was about to turn 56 decided to ask about annuities again to go ahead, then heard about the EU possible change in March and so there was some urgency. Trouble is he doesn't seem to be doing anything. Keep asking him for quotes from other companies - open market option but nothing as yet. The pension companies quotes for annuity where my husband has his funds seem to be less than last year. This has been going on since before Christmas. When he does answer emails he apologises, says he has had Flu and then colds and then other ailment which I know must be delaying things. If at the end of the day we get no answers from him and we are not happy, can we just change IFAs and start again, although we will be affected by whatever the ruling is in March? Would apprciate any advice.

Wilma33

Get rid of him and use this site to find a new one:
www.unbiased.co.uk

dunstonh

first consultation free.

As is standard. You are not allowed to be charged until such time that you have been issued the terms of business and a fee method agreed. So, typically you get the first meeting free to see what its all about and then agree the remuneration method going forward.

He got my husband to write pension companies (there are 2) saying he was our IFA.

That is also normal as the companies will supply the required data to the servicing IFA.

The pension companies quotes for annuity where my husband has his funds seem to be less than last year.

A lot of companies have moved to lower assumptions on their projections. Its not so much a case of you getting less (as your values are probably a lot higher than last years statement). Its just the assumptions changing.

can we just change IFAs and start again, although we will be affected by whatever the ruling is in March?

Yes. get a local IFA (not one attached to a salesforce or has to pay x% of the money earned back to the introducer like you have had). You are possibly just about still in time. If you have a fairly recent illustration of benefits, then the new IFA can use that information. That said, some providers have already pulled the 14 day guarantee of annuity rates. So, any changes that may occur will affect the rate.

It does have to be said that buying an annuity at age 56 next birthday and at a time when interest rates are low is not a great idea. Annuity rates are likely to start rising by the end of the year (if interest rates start rising). Plus, age 56 annuity rate is dire. It may be that going unsecured income option is better if you need the money and then move to annuity in his 60s when the annuity rates are better and rates have improved as part of the economic cycle.

annie_tanks

Try Hargreaves Lansdown..they are one of the biggest pension providers around..and if you suffer any ill-health/smoke/drink a lot etc there is a chance you may get an enhancement..they will chat with you for the best retirement plan that suits you...and no I do not work for them..

trina2010

hargreaves lansdown is only 1 company, a big company yes but only 1. Consult an IFA for a full range of whats available and get the best deal you possibly can.
Annie lots of pension companies offer possible enhancement and they will only try and sell their products so an independent is a FAR better idea.
As long as you get one that works with you, rather than hindering progress like the OPs current.

jem16

trina2010 wrote: »

hargreaves lansdown is only 1 company, a big company yes but only 1. Consult an IFA for a full range of whats available and get the best deal you possibly can.

Hargreaves Lansdown are IFAs.

I'd still tend to consult a local IFA though.

Loughton_Monkey

trina2010 wrote: »

hargreaves lansdown is only 1 company, a big company yes but only 1. Consult an IFA ...

Hargreaves Lansdown are an IFA in this context. I once tried them and got a 'good' quote, but then got a better one from another IFA.

You should sack your IFA, OP, and get another one. He is being paid by commission, I assume, and the commission is the same even if it comes after a bad ruling on March 1st.

IFA's can earn pretty well, and I would want a bit of urgency and attention personally.

JOHNGT

Don't get too hung up about possible gender neutral change on 1st March. Male rates likely to drop between 1% and 3% rather than the 10% quoted in the media. Annuity rates could easily rise by much more if gilt and corporate bond yields rise as they have been doing lately.

As other say get a proper IFA.

evergreen

Thankyou all for your replies. The IFA came and saw my husband yesterday and we have gone through all the options. Now we have all the information we can move forward.