Nationwide takes on insurers with annuity service

worldtraveller

Help is at hand for people with small pension pots looking to get more for their money when they retire.

Nationwide Building Society is one of the first providers to capitalise on these proposed changes, by launching a new annuity brokerage service today. Those approaching retirement can use this service to source a higher annuity rate.

The move comes after the National Association of Pension Funds (NAPF) called for more high street services to enable people to shop around for better annuity rates. As it stands those advisers that advise on annuities typcially deal with consumers that have big pension pots.

Nationwide will use a panel of six insurers – including Aviva, Just Retirement, Legal & General and the insurer Partnership – which specialises in enhanced life annuities. Customers do not pay a fee to use the service, instead the building society will collect a commission payment from the insurer. A spokeswoman for Nationwide said these payments will be “fully disclosed”.

Unlike some more specialist advisory firms, Nationwide said it will offer this broking service to those with small pensions pots, the minimum sized fund is £18,000.

The Telegraph

Velcro_Hotdog

worldtraveller wrote: »

Help is at hand for people with small pension pots looking to get more for their money when they retire.

Nationwide Building Society is one of the first providers to capitalise on these proposed changes, by launching a new annuity brokerage service today. Those approaching retirement can use this service to source a higher annuity rate.

This service has been offered by many companies for years now so they are hardly the first

The move comes after the National Association of Pension Funds (NAPF) called for more high street services to enable people to shop around for better annuity rates. As it stands those advisers that advise on annuities typcially deal with consumers that have big pension pots.

That's because they provide advice, and advice costs money. Nationwide will not be providing advice

Nationwide will use a panel of six insurers – including Aviva, Just Retirement, Legal & General and the insurer Partnership – which specialises in enhanced life annuities. Customers do not pay a fee to use the service, instead the building society will collect a commission payment from the insurer. A spokeswoman for Nationwide said these payments will be “fully disclosed”.

Just like lots of companies have been doing for years and will continue to do so post RDR, so no change there

Unlike some more specialist advisory firms, Nationwide said it will offer this broking service to those with small pensions pots, the minimum sized fund is £18,000.

Again nothing new

The Telegraph

So you can go to Nationwide and have access to a limited number of providers or shop around for true whole of market rates for the many companies who have years of experience.

dunstonh

Nationwide takes on insurers with annuity service

No they dont.

Nationwide Building Society is one of the first providers to capitalise on these proposed changes, by launching a new annuity brokerage service today.

So, what do you call the 20,000 odd IFAs that have been doing this donkeys years? Nationwide is not the first.

Nationwide will use a panel of six insurers – including Aviva, Just Retirement, Legal & General and the insurer Partnership – which specialises in enhanced life annuities. Customers do not pay a fee to use the service, instead the building society will collect a commission payment from the insurer. A spokeswoman for Nationwide said these payments will be “fully disclosed”.

Not a bad panel but a number of the OMO I have done recently have not been with a company on that panel. Plus, commission is being banned in 9 months. So, the cost basis is going to have to go fee basis.

Unlike some more specialist advisory firms, Nationwide said it will offer this broking service to those with small pensions pots, the minimum sized fund is £18,000.

Typically IFA firms are best priced to look at around 25k plus to do this. So, the choice is really use a limited service from Nationwide or a whole of market service from IFAs unless you happen to have a near trivial fund and cannot find an IFA locally that will do it on commission for you in the 9 months that are remaining.