Annuities

sweeneytodd

TableTop wrote: »

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.

I'm very pleased for you altho' I'm a bit surprised L&G came out tops for an impaired case.

If the jobs worth doing it's worth doing well so if I were searching for an annuity I'd drop my details to several sources.

If you have health and/or lifestyle issues make sure you use someone who will properly record your details, preferably via a medical questionnaire before accepting a 'quote' that may prove misleading when the proper medical details are received by the annuity provider.

In reality, as with all things some will be better than others but it's a truism to say that volume equals better terms. That applies to both commission and in some cases rates.

Some larger organisations, despite protestations to the contrary receive both higher commission (up to 4% for an impaired case) and advantageous rates.

If you really want to play the game get an outfit like the above to quote and, at the very least, use other outfits, who are likely to be working on a much smaller margin to beat down the larger outfit's remuneration and therefore increase your rate.

You may be surpised as to the difference between your first and last 'best quote'.

casey_junior

sweeneytodd wrote: »

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.

Can you provide links to these please, time is of the essence.

dunstonh

Can you provide links to these please, time is of the essence.

google unsecured income (or pension drawdown as it used to be known more commonly as and still often called that). That will give you the basics.