Annuity purchase advice please

BarGin

I'm due to retire at the beginning of April this year. I have accumulated 2 pension pots: approximately £72,000 with Zurich and approximately £42,000 with Canada Life (as a result of opting out of SERPS).

I assume my best bet would be to use one of the comparison sites? Can anybody recommend one in particular please?

Should I apply now, or wait until nearer the time?

I intend to take the maximum tax free cash from both pots.

Linton

Your best bet for that size of pot will probably be to use an IFA. If there is any doubt about your health that probability becomes a certainty. And yes you should start sorting it out now if you want it when you retire. It takes a while to set up an annuity, as it's not simply a matter of filling in a form on a website. You will probably need to send proof of ID by post and sign documents etc.

ctdctd

Here is the current best buy rates from H-L which may give you an idea.

http://www.hl.co.uk/pensions/annuities/annuity-best-buy-rates

jem16

BarGin wrote: »

I'm due to retire at the beginning of April this year. I have accumulated 2 pension pots: approximately £72,000 with Zurich and approximately £42,000 with Canada Life (as a result of opting out of SERPS).

I assume my best bet would be to use one of the comparison sites? Can anybody recommend one in particular please?

No your best bet with that amount of money would probably be the see a Financial Adviser who is able to access the whole of the market for pensions.

However you could look at some comparison sites if you want a rough idea.

Should I apply now, or wait until nearer the time?

Probably a good idea to start looking now.

BarGin

Thanks for the speedy replies. What's the best way of finding a trustworthy IFA?

bigadaj

BarGin wrote: »

Thanks for the speedy replies. What's the best way of finding a trustworthy IFA?

Personal recommendation is best, otherwise got to unbiased.co.uk and make sure the sponsored ads icon is turned off.

Speak to maybe three near to you and choose the one you feel most comfortable with, on the value of your pots their fees will be entirely covered by the commission/ internal fee built into the product by the insurer so it shouldn't cost you anything net, though worth confirming with your preferred ifa.

Linton

The best way is from personal recommendation. Otherwise http://www.unbiased.co.uk/ and have a chat with a few to find one you feel most comfortable with.

SallyG

Fear Not - help is on its way................ slowly....very slowly.
http://www.fca.org.uk/news/fca-finds-annuity-market-not-working-for-consumers-competition-market-study-launched

"While it has not proposed creating new rules at this stage, as the FCA continues to assess the retirement market it will consider very carefully whether changes to its investment rule book are needed to create a market that treats its customers better.

Further information on the review
Next steps

The FCA is now conducting a Competition Market Study. As part of this it will do further supervisory work looking at how firms behave and treat their customers when selling an annuity.

Interim findings will be published in the summer of 2014. This will cover the FCA’s provisional assessment of competition and include ‘theories of harm’[2], as well as results from the FCA’s review of sales practices.

Within 12 months the FCA will publish the final competition market study report, outlining proposed remedies. Depending on the findings of the Competition Market Study, the remedies could include rule changes designed to stimulate competition in the market or to constrain the behaviour of certain firms."

Have you considered doing income drawdown?

kidmugsy

Before you see your IFA you might want to consider which sorts of annuity may suit you best. For example, would it be wise to buy one level annuity and one investment-linked? Would it be better not to buy an annuity at all and go for income drawdown instead?

mania112

kidmugsy wrote: »

Before you see your IFA you might want to consider which sorts of annuity may suit you best. For example, would it be wise to buy one level annuity and one investment-linked? Would it be better not to buy an annuity at all and go for income drawdown instead?

Those are questions the OP doesn't know - those are questions the IFA will find the answer to.

dunstonh

I assume my best bet would be to use one of the comparison sites? Can anybody recommend one in particular please?

No. That may give you a better result but it will almost certainly be a lesser result than seeing a financial adviser who is whole of market on annuities.