Prudential Retirement Pack – advice needed, please.

Grrra

Hi,
I am looking for some help regarding my Prudential Pension Annuity.
Forgive my naivety, but I am confused what to do for the best and would really appreciate some advice. Apologies if this is a little long-winded.
I have received a, ‘Retirement Pack from the Pru’ (a month late).
As far as I can make out there are four options:
a) Guaranteed Pension Annuity – the payments (to me) will always be the same – yearly income £1566.36 or £1424.52.
b) Guaranteed Pension Annuity – goes up each year by a fixed %, which I can choose, up to 8.5%.
c) Guaranteed Pension Annuity – changes each year in line with inflation, in line with the RPI.
d) Income Choice Annuity – possibility of the pension increasing/decreasing - Pru’s ‘With Profitss Fund’. Two choices; Lower £988.20 (quoted £1566.36 in year 1) – higher £20001.72 OR Lower £1129.20 (quoted £1442.52 in year 1) – higher £2149.92.
I am not too concerned about the, ‘Joint Life’ cover.
Are all the four options, payments for life?
Taking a higher start level of income choosing point d?
Choosing the 8.5% option in point b?
Or invest elsewhere?
Once decided, the Pru’ will not allow me to change my mind. So, it is important that I make the right decision now for my retirement. I’m sure you understand.
I have tried to be clear as I can. Any help or advice would be greatly appreciated.
Take care.

dunstonh

No brainer. See a local IFA.

The IFA can answer your questions, eliminate options and search the market to get you a better deal. Even in the unlikely case they cannot beat Pru, then Pru will pay the IFA for doing all the work.

Grrra

Thanks very much for the advice and apologies for not replying sooner.
I'll search an IFA out on Monday. I assume they don't charge for giving advice?
Take care.

dunstonh

I assume they don't charge for giving advice?

Yes they do. An IFA cannot give free advice. They would be out of business quickly if they did that.

However, prudential pay a commission of around 1.3% on their annuity. If you dont use an IFA, then Pru keep that for themselves. If you use an IFA, they will pay it to the IFA. So, the cost of the IFA is paid for by the insurer. If the IFA recommends xyz company as a better option for you, then they will pay the IFA instead.