How to find a good annuity

zagfles

dunstonh wrote: »

DIY/direct can still be paid commission. The commission is factored into the annuity rate in much the same way a fee would.

Will this be stopped with RDR2?

jem16

zagfles wrote: »

Not quite "in the dark". He quoted the range of his initial quotes

Would have been better to know the final quote though as without this we can only guess the percentage rate of the discount.

and the "haggling" discount,

Let's assume then that the OP went for the highest of the initial quotes at £68pm ( although I suspect it was more in the end as it seemed to be a tip off from Dh's figures that sent him/her back to the provider). That's £816pa making the extra £45pa a 5.5% increase which even the OP described as better than nothing so perhaps the actual increase was less.

I'm not entirely sure why the OP doesn't want to divulge figures though.

which seems to be in the range IFAs can supposedly get.

Yet on an enhanced annuity, Dh has just said that he got over 20%.

At least it buries the myth that DIY = no haggling.

I think the "haggling" came about as the OP probably went back to the provider and threatened to cancel unless given more.

zagfles

jem16 wrote: »

Would have been better to know the final quote though as without this we can only guess the percentage rate of the discount.

Let's assume then that the OP went for the highest of the initial quotes at £68pm ( although I suspect it was more in the end as it seemed to be a tip off from Dh's figures that sent him/her back to the provider). That's £816pa making the extra £45pa a 5.5% increase which even the OP described as better than nothing so perhaps the actual increase was less.

I'm not entirely sure why the OP doesn't want to divulge figures though.

Probably because it's all done and dusted and he has no further need for this board. His last reply said "final update", so probably no point asking him questions after that.

Yet on an enhanced annuity, Dh has just said that he got over 20%.

One example. Earlier in this thread he wrote

However, with enhanced rates, these providers haggle with IFAs and you often get 5-10% improvements over the electronic rates

So getting 5.5% as a beginner is good going I'd say!

I think the "haggling" came about as the OP probably went back to the provider and threatened to cancel unless given more.

How else does haggling work? "Drop your price or I won't buy".

Very useful thread anyway!

jem16

zagfles wrote: »

Probably because it's all done and dusted and he has no further need for this board. His last reply said "final update", so probably no point asking him questions after that.

Pity that - get what you want from experienced posters and don't give anything back to help others in the same situation.

I hope not and perhaps debutante would consider coming back.

zagfles

jem16 wrote: »

Pity that - get what you want from experienced posters and don't give anything back to help others in the same situation.

I hope not and perhaps debutante would consider coming back.

It's hardly unusual behaviour - it happens all the time on every message board. Someone inexperienced comes along, gets good advice, acts on it and then goes never to return. Or not until they have another question.

What's the big deal in this case? At least he thanked everyone, which is more than a lot do! And the thread will very useful for the next annuity buyer who comes along.

jem16

zagfles wrote: »

Someone inexperienced comes along, gets good advice, acts on it and then goes never to return.

He has been back though, just not posted.

What's the big deal in this case?

No big deal. Just helpful to get figures otherwise it's no real help to others who would like to DIY.

At least he thanked everyone, which is more than a lot do!

Yes, very true.

And the thread will very useful for the next annuity buyer who comes along.

All it's told me is that you can DIY and get a better annuity than your pension provider offers. Without any figures, it doesn't really tell us whether DIY or IFA is the best route.

atush

The thread wasn't useful to me, as they refused to even say what %they got. which isn't helpful to other DIYers.

Quite selfish in fact?

Telegraph_Sam

zagfles wrote: »

Plenty of "greedy" ones though - as you yourself have said several times. That's where getting the best DIY quote yourself would likely be useful even if you're using an IFA.

That summarises my ramblings nicely. Question is how best to get the best DIY quotes for comparison

zagfles

jem16 wrote: »

No big deal. Just helpful to get figures otherwise it's no real help to others who would like to DIY.

Not really sure exact figures would have been that useful - we have approximate figures and with enhanced annuities it's bound to vary greatly.

All it's told me is that you can DIY and get a better annuity than your pension provider offers. Without any figures, it doesn't really tell us whether DIY or IFA is the best route.

I think this and other threads make clear that you should do both. Do what the OP has done, use MAS, use annuity discount brokers, haggle, get the best quote you can DIY.

Then contact some IFAs and challenge them to beat the quote net of advice fees.

Telegraph_Sam

zagfles wrote: »

Do what the OP has done, use MAS, use annuity discount brokers

Any suggestons?

zagfles wrote: »

Then contact some IFAs and challenge them to beat the quote net of advice fees.

I'd rather like to take the advice fees into the equation also!