just take or shop around

zagfles

SallyG wrote: »

"quotes from several IFAs" ........... at £500 a quote?

£500 just for a quote??

OP - may also be worth looking at options yourself - and perhaps challenging an IFA to get you a better deal. You don't just want them to get you a better deal than FP, you want the best possible deal you can get. Here are a couple of examples (note these are just from a google, I don't know anything about these companies):

http://www.click4annuities.co.uk/com...highest-rates/

http://www.annuitydiscount.co.uk

dunstonh

£500 just for a quote??

You dont just get a quote though. The MAS gives you a basic idea free of charge. An IFA has to narrow the options down, deal with health and get various bits of info before they can quote.

So, as mentioned above, going to MAS first to get a figure to see if it is better is a good idea and then if it is, get a local IFA to deal with it from there. Usually IFAs will come in with better figures than MAS (the order of providers will change as well).

panny300

thank you all for your advice.
so i could be paying 500 quid just for quotes that i might not take?
surely people don't actually do that?

dunstonh

so i could be paying 500 quid just for quotes that i might not take?

Not exactly.

If you employ an adviser on fee basis to do work and get the adviser to do all the work but at the end you say no thanks then you will normally pay for the work done.

surely people don't actually do that?

No they dont. And lets be realistic. You have a tiny pot. Many IFAs are not going to be that interested in dealing with you as they cant be cost effective and those that do are not going to be much different from one another to make it worthwhile.

There is also the real world vs the FSA world. Officially, the adviser should separate the advice and product and shouldnt jump to the end result without doing the other bits first. However, in something like this it is impossible to do so. So, the adviser may just initially run the figures through the software to see if the OMO beats FP. Then if it does, then go through the process and at that point get a fee commitment from you.

Remember that if you use FP they keep the commission they would pay the adviser. If the adviser recommends FP, then FP will pay the commission to the adviser. If you go direct to another provider then that provider will keep the commission they would have paid the IFA.

zagfles

panny300 wrote: »

thank you all for your advice.
so i could be paying 500 quid just for quotes that i might not take?
surely people don't actually do that?

Before going to an adviser I'd suggest doing as many online quotes as possible, and arming yourself with the best ones, and asking then to beat them, or no fee. Rather than simply beat the FP quote.

See the links above, also you could try brokers like HL http://www.hl.co.uk/pensions/annuities Don't think they offer any commission rebate though.

Think about exactly what type of annuity you want, eg inflation linked or flat, guaranteed for so many years (so they pay for a certain period even if you die before), provision for spouse/partner if you die first (and how much) etc. Also as above make sure you mention any health issues, smoking etc as this could get you more.

Also as above you could consider drawdown rather than buying an annuity. This is fairly easy DIY, have a look at the HL site, but there are plenty of others.

zagfles

dunstonh wrote: »

Remember that if you use FP they keep the commission they would pay the adviser. If the adviser recommends FP, then FP will pay the commission to the adviser. If you go direct to another provider then that provider will keep the commission they would have paid the IFA.

But as above some brokers will rebate part of the commission.

dunstonh

But as above some brokers will rebate part of the commission.

But no indication of haggling up (which is a manual task and not automated) and the individual has to pick the options. If the OP is capable of knowing whether he wants with or without proportion, with or without overlap, what type of guarantee (income or lump sum), the calculation of breakeven points etc then they may be a valid option for small funds (but not big funds).

edit: Just looking at the figures they are remarkably similar to one I did a couple of months ago. Friends Life pension £32,100 pot. Annuity from Friends was £1267. Best online quote obtained by him was £1724 (he had gave me a copy). I got £1856 after haggle but was also £1724 before haggle (which suggests standard retail terms were applied the same way). That was with fee taken from the pension pot and the figures inclusive. Annuity rates have fallen back a bit since then and there is an age difference but the main point is the difference in figures between the existing provider and OMO (although we used the IVPPP method in this case rather than the OMO method).

mania112

If the Annuity you want is Single Life, if you have no life-shortening illnesses (including smoking) and you have exactly £32k (and you're female which isn't 100% clear, I just get that impression!)...

using the Money Advice Service with the link i posted above, Aviva are top offering £1,080 pa, £150 more than you're currently offered.

If an IFA was to arrange that for you, for £500, it would take less than 4 years before that become a worthwhile exercise.

EDIT: Any if you do smoke and you do have medical conditions - that amount will only further go up.

zagfles

dunstonh wrote: »

But no indication of haggling up (which is a manual task and not automated) and the individual has to pick the options. If the OP is capable of knowing whether he wants with or without proportion, with or without overlap, what type of guarantee (income or lump sum), the calculation of breakeven points etc then they may be a valid option for small funds (but not big funds).

edit: Just looking at the figures they are remarkably similar to one I did a couple of months ago. Friends Life pension £32,100 pot. Annuity from Friends was £1267. Best online quote obtained by him was £1724 (he had gave me a copy). I got £1856 after haggle but was also £1724 before haggle (which suggests standard retail terms were applied the same way). That was with fee taken from the pension pot and the figures inclusive. Annuity rates have fallen back a bit since then and there is an age difference but the main point is the difference in figures between the existing provider and OMO (although we used the IVPPP method in this case rather than the OMO method).

Indeed, like your client I'm suggesting the OP gets the best rates from online quotes including discount brokers, and challenging the IFA to beat them. Rather than just turn up at an IFA empty handed, or just with the FP quote, and asking them to beat that.

Some IFAs I'm sure would do a good job, others, as we've seen from recent threads including this one, are rip-off merchants https://forums.moneysavingexpert.com/discussion/4293237