Buying an Annuity

5lugger

Hi,

1st thread so please go easy!!

My dad will be retiring (65) this year and so is looking to purchase an annuity.

It's not an area he knows anything about so I've been trying to help where possible (including suggesting he speaks to an IFA!!!)

I've got him the MSE guide etc and have got contact numbers for the usual type of providers, Aviva, Canada Life, the Pru etc, but after that I'm a little out of my depth.

Are there any other 'hidden' providers, apart from the big boys he should consider contacting, and are there any other considerations he should take into account?

He has his heart set on taking the full 25% lump sum, which as far as I can see has no drawback as tax free etc, but after that not sure if he should go with 10 year guarantee, RPI linked etc.

Any time and help you could give would be greatly appreciated.


5lugger.

dunstonh

Are there any other 'hidden' providers, apart from the big boys he should consider contacting, and are there any other considerations he should take into account?

Save yourself a lot of time and effort. Use a local IFA. Many of the annuity providers will only deal with the public via an IFA. Especially the ones offering enhanced terms.

Its a no brainer as the companies will pay the IFA. If you dont use an iFA then the companies will keep the money they would pay an IFA for themselves. Plus you get the paperwork sorted, options like indexation, guarantee (with value protect or without), with or without proportion etc covered off. (for example, Aviva use value protect on their guarantee period but others do not. Value protect results in a 35% tax charge - rising to 55% shortly).