Annuities

damperman

I already have an IFA as recommended by all on this forum. I only asked the question as he has mentioned about the FTA and its advantages. But its always a good idea to get other views. Thanks.

casey_junior

CannySaver wrote: »

If you need to investigate more see an IFA www.unbiased.co.uk

The Canny Saver

I have acquired an IFA not only for advice but to prevent the FA who arranged my policy way back in the mists of time from getting the commission by default. If perchance I get a better deal throgh an online provider, will I be liable for the IFA's fees?

dunstonh

I have acquired an IFA not only for advice but to prevent the FA who arranged my policy way back in the mists of time from getting the commission by default. If perchance I get a better deal throgh an online provider, will I be liable for the IFA's fees?

In the vast majority of cases, the servicing IFA is paid any commission raised. So, if the IFA has been appointed servicing agent then they will be paid it. That can be used to offset fees

sandsy

CannySaver wrote: »

Hi

A Fixed Term Annuity.... They are relatively new

Oh good grief, now I feel old : :roll: I remember these donkeys years ago when I first started work in Financial Services! They went out of fashion and now they've reappeared!

dunstonh

Oh good grief, now I feel old : :roll: I remember these donkeys years ago when I first started work in Financial Services! They went out of fashion and now they've reappeared!

A lot of the old ways are coming back. Multi-charge pensions are now more common than mono charge. Front loading of charges onto products to reduce ongoing charges now being seen as fairer....

casey_junior

Only two weeks to go now, and I was minded to take a Joint Life 100% No Guarantee, the best coming in at £2800. But then I had an event last week which hospitalised me, and I realised that I'm not going to get any quick answers as to my medical condition so I began to think along these lines,

[QUOTE=CannySaver;4617991
A Fixed Term Annuity provides a guaranteed level of income for a period of time, usually 3 - 10 years, and at the end of that term gives a guaranteed maturity value which can be then used to buy another retirement income product (Lifetime Annuity, Fixed Term Annuity, Income Drawdown and so on).

They are generally written under Income Drawdown rules and can suit the following type of people:

1. Those who need an income now but do not wish to buy a Lifetime Annuitybecause they think they may qualify for an enhanced rate in the future or they think annuity rates might rise :rotfl:in the future
The Canny Saver[/QUOTE]

I do need an income now as I've been living on CB ESA this past 2.5 years.The IFA has a quote for a flexible annuity of £2500pa Level 50% 5 yr guarantee with £37k guaranteed fund after 5 years.
Which brings me to this,

Loughton_Monkey wrote: »

It is important to consider 'she who must be obeyed' because a single life annuity dies with you. In my house, I consider all our assets to be 'joint'.

So overall, a 100% joint level annuity would be my own "point of focus" and would need a lot of convincing to do something different. But I would look at all the other possibilities at the time of decision.

My thoughts entirely LM, it now begs the question, Since SWMBO is a smoker and is on medication for both high blood pressure and high cholesterol, the high blood pressure being only recently diagnosed and my own problem just coming to light, would I be better taking the flexible route?

sweeneytodd

casey_junior wrote: »

Only two weeks to go now, and I was minded to take a Joint Life 100% No Guarantee, the best coming in at £2800. But then I had an event last week which hospitalised me, and I realised that I'm not going to get any quick answers as to my medical condition so I began to think along these lines,



I do need an income now as I've been living on CB ESA this past 2.5 years.The IFA has a quote for a flexible annuity of £2500pa Level 50% 5 yr guarantee with £37k guaranteed fund after 5 years.
Which brings me to this,



My thoughts entirely LM, it now begs the question, Since SWMBO is a smoker and is on medication for both high blood pressure and high cholesterol, the high blood pressure being only recently diagnosed and my own problem just coming to light, would I be better taking the flexible route?

You'll qualify for an enhancement on your spouse's conditions/smoking let alone what comes of your medical situation.

Alternatively there are a couple of providers who provide a temporary solution with the option to bail out and take an enhanced rate should your circumstances change.

Use a broker (they may also be an IFA).

Your average IFA does one of these every blue moon and may not be experienced in the enhanced/impaired arena for example.

It's also unilikely yer average jobbing IFA will be able to secure you the best rates. A broker/at retirement specialist is likely to have enhanced rates due to the volume of business they do.

dunstonh

Use a broker (they may also be an IFA).

You mean use an IFA (who may also be a broker).

Your average IFA does one of these every blue moon and may not be experienced in the enhanced/impaired arena for example.

I doubt it. I can imagine they do sufficient volume to be aware. Although, I can imagine a few of the final hangers on not being up to speed.

It's also unilikely yer average jobbing IFA will be able to secure you the best rates. A broker/at retirement specialist is likely to have enhanced rates due to the volume of business they do.

I disagree. Some of the best terms are provided to network IFAs (or those directly authorised but use selected compliance services of the network). Having compared quotes obtained with a couple of the so called retirement specialists, I have seen no difference or have come in higher (after the customary haggle to improve terms).

sweeneytodd

dunstonh wrote: »

You mean use an IFA (who may also be a broker).

Either tbh. Depends how much of the research you do yourself beforehand.


I doubt it. I can imagine they do sufficient volume to be aware. Although, I can imagine a few of the final hangers on not being up to speed.

Imagine all you like there's a world of difference between doing the odd annuity and being an annuity specialist.



I disagree. Some of the best terms are provided to network IFAs (or those directly authorised but use selected compliance services of the network). Having compared quotes obtained with a couple of the so called retirement specialists, I have seen no difference or have come in higher (after the customary haggle to improve terms).

Network IFA's? Contradiction in terms

You're not trying hard enough if that's the case D. I do have some experience in this arena. Some customers had a such a good relationship with their IFA they'd do all the legwork for them, obtain the best quotes online and hand them back to the IFA so they could do the business.:rotfl:

It's indisputable Dunston you will get better rates from a decent specialist annuity broker and that's before you start rebating commission

:D Bloody quotes.

TableTop

I have this year taken an impaired life annuity myself and used both a specialist online provider, and an IFA.

I started with an online specialist retirement company, provided all my health details, and got back a quote for an annuity which I was pleased with. It showed the commission payable to the retirement company as being over £2,000 but I knew that this would not affect the pension payable to me so that was OK. They were easy to deal with, prompt and transparent.

Then I tried a local small IFA, provided same info, and he got a very much better offer from L&G. I didnt haggle re commission rebate but even so, the commission which he received (shown on my paperwork) was much less - in the region of £1500.

So my personal experience tends to support Dunstonh's point of view. I cannot say it would always work out like that, but on this occasion it did for me.