MSE News: Pensions firms face competition probe over annuities
Former_MSE_Helen
Former MSE Posts: 2,382 Forumite
"The FCA is to investigate the annuities market amid concerns it's depriving many pensioners of a fair retirement..."
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Pensions firms face competition probe over annuities
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Pensions firms face competition probe over annuities
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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This story is based on the FCA Thematic Review of Annuities which is available at the linked page.0
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If you could get annuities through Quidco, I wonder what cashback you could get back.
Presumably the annuity provider offers £5,000 a year fopr £100,000 pot as usual, but they probably pay handsomely for pimps who groom pension virgins really well.0 -
If you could get annuities through Quidco, I wonder what cashback you could get back.
1 - if you build in commission to pay for cashbacks then the annuity rate would be lower. So, false economy
2 - there is the possibility (probability) that it would be classed as an unauthorised payment by HMRC.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
if you build in commission to pay for cashbacks then the annuity rate would be lower
Aren't annuity rates already lower because they build in a deduction for commission/fee even if advice isn't taken?I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »Aren't annuity rates already lower because they build in a deduction for commission/fee even if advice isn't taken?
They are. So, factoring even more in is pointless.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
They are. So, factoring even more in is pointless.
Agreed, unless there is some way for me to get that commission rather than it be taken from my pot and given to someone else.
Hmmm, do Cavendish do annuities?I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »Hmmm, do Cavendish do annuities?
Yes, but essentially are irrelevant as they only work from a limited panel that doesn't include the top enhanced providers.I work for a financial services intermediary specialising in the at-retirement market. I am not a financial adviser, and any comments represent my opinion only and should not be construed as advice or a recommendation0 -
Hmmm, do Cavendish do annuities?
they do but an IFA should be better on 20k or higher due to haggling on enhanced with little difference on standard.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
with little difference on standard.
But surely that's because standard involves the annuity company pocketing the commission rather than putting it into the annuity pot?
Perhaps these are the next hidden fees that the FCA needs to address?I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
But surely that's because standard involves the annuity company pocketing the commission rather than putting it into the annuity pot?
Standard as in not enhanced. Not in house annuities.Perhaps these are the next hidden fees that the FCA needs to address?
There isnt any. Even in-house ones disclose the commission.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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