Income choice annuity charges

Sacha2

My husband has an income choice annuity and in addition to paying initial commission, an initial charge and a yearly charge our adviser is also being paid an annual commission of just short of £1000. All this is in addition to the 1% we pay on all our other investments.
Is this level of commission normal? His annuity is very small and this seems a disproportionate amount to be paying annually (roughly 10% of the yearly payout). The annuity was set up in December 2012 pre the new rules for charging.
Many thanks in advance.

dunstonh

My husband has an income choice annuity and in addition to paying initial commission, an initial charge and a yearly charge our adviser is also being paid an annual commission of just short of £1000. All this is in addition to the 1% we pay on all our other investments.

Commission is paid for out of product charges. not in addition to product charges.

Is this level of commission normal?

For a small amount 1% seems reasonable. For a large amount, it wouldnt be. Smaller amounts do typically pay more relative to the amount invested compared with larger amounts. It is common to see a 1% tier, 0.75% tier and a 0.5% tier etc depending on amounts.