Annuity purchase advice please

SallyG

Just found this - http://pensionsandsavings.com/annutiies-and-income-drawdown/the-alternative-annuity-directory-why-ifas-are-important/

"Here is an example of the costs of annuity purchase:

You have a £35,000 pension fund and are entitled to better than standard annuity rates because you have high blood pressure. An independent adviser might charge you a fixed fee of £600 for finding you the right product and best rate. Paying this fee means there is someone to ensure you choose the right path for your retirement income, explains the different options to you face to face and is responsible for finding you the right solution rather than leaving you to find the best route on your own. Using a non-advice service, the commission taken from your fund would be at least 1.5%, which is £525 – £75 less than a fixed advice fee of £600, but giving the benefits of advice for that money. However, around half of customers will qualify for an improved annuity rate due to a health issue and the commission for buying a non-standard annuity will often be 3.5%, which would amount to £1,225 – more than double the cost of using an adviser."
Does it match your experience?

SallyG

How do we identify whole of annuity market annuity specialist IFAs?
http://www.unbiased.co.uk/find-an-adviser?gclid=CL7Yv5Kz4rwCFQgHwwod41AABg
"Unbiased" IFA search website doesn't allow a search for whole of annuity market IFAs amongst annuity specialist IFAs?
Is it unsafe to assume the annuity specialists listed are whole of market?
I've looked at a couple of the "annuity specialist IFA " websites - whole of market doesn't seem to feature so far - is there a secret sign?

kidmugsy

mania112 wrote: »

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

These are questions that the OP must learn the meaning of. Then his discussion with his IFA can be reasonably well informed.

dunstonh

How do we identify whole of annuity market annuity specialist IFAs?

Easy. All of them.

I've looked at a couple of the "annuity specialist IFA " websites - whole of market doesn't seem to feature so far - is there a secret sign?

There are only two classifications. Independent and restricted. IFAs have to be whole of market. Restricted can be anything from single company through to whole of market.

bmm78

Some important areas to cover:

1) Consider all providers in the market

2) Consider all products available (ie not just annuities)

3) Ensure all annuity quotes are based on full medical information

4) Thoroughly investigate potential benefits on your existing plans

Some comparison websites can cover off 1) and 3), and some may provide you with quotes for alternative products. However, a good IFA is the only option that can satisfactorily cover all bases. Based on your fund size, I think the IFA route is a no-brainer.

Key then is to find the best IFA. It's important to not get fixated with costs, and probe for their knowledge and expertise in this area. Specialist pension qualifications (eg G60, J05) may be an indicator, but you can probably find out more just by asking them on their thoughts on recent developments in the annuity market, and what they think about alternatives such as investment-linked annuities and fixed term annuities.

The FCA report suggests that people who use an adviser get better outcomes than those who don't, and you should be in safe hands with an IFA.

Teaandscones

Before you see your IFA, you should book an appointment with your GP and be completely honest about how much you smoke, drink etc. With regards to annuities the more unhealthy you seem the better.

deepoo

I am also looking for an annuity with around £100k. I am in good health and a straight forward fixed rate is currently around £5380 p.a. (checked on 3 comparison sites). This type of pension is OK for me (I think) but would an IFA have access to better rates than that? If so, where is that data and is it available to the public?

dunstonh

deepoo wrote: »

I am also looking for an annuity with around £100k. I am in good health and a straight forward fixed rate is currently around £5380 p.a. (checked on 3 comparison sites). This type of pension is OK for me (I think) but would an IFA have access to better rates than that? If so, where is that data and is it available to the public?

on 100k, an IFA would be cheaper (fee vs commission) and that should result in a better rate on std terms.

IFAs wouldnt use public tables as they are unreliable and often give results that are different to actual.

SallyG

Recent background for income drawdown:
http://www.ifaonline.co.uk/retirement-planner/feature/2326789/income-drawdown-putting-the-right-advice-process-in-place

BarGin

Do Annuity Direct count as IFAs?