Retirement and annuities

newhorizons

I am just about to retire in one month :wave:with two pensions from Standard Life. One has approx £54,000 in it and the other has £24,000.
They both offer different terms for example one offers 10 year guarantee the other 5 year guarantee. My question is does anyone know of an online search facility which accesses all the various annuity providers so I can obtain quotations or estimates of annuities from all or most of the providers? In much the same way that you can check energy suppliers, flights etc?

The ones I've seen so far don't give you a simple comparison at all they mainly refer you to Financial Advisors but I want to do most of the searching myself and only use an advisor when I have alternatives other than Standard Life.

Drp8713

You could have a look at http://www.ft.com/personal-finance/annuity-table


However, when buying an annuity, an IFA could potentially add value so maybe speak to one and see what they can offer.

jem16

newhorizons wrote: »

My question is does anyone know of an online search facility which accesses all the various annuity providers so I can obtain quotations or estimates of annuities from all or most of the providers? In much the same way that you can check energy suppliers, flights etc?

Nothing of that sort exists for annuities. Some sites will give very rough estimates but that's about it.

The ones I've seen so far don't give you a simple comparison at all they mainly refer you to Financial Advisors but I want to do most of the searching myself and only use an advisor when I have alternatives other than Standard Life.

For the amounts you quote, a Financial Adviser will almost certainly get you the best rate. You will also get proper advice and consumer protection.

dunstonh

They both offer different terms for example one offers 10 year guarantee the other 5 year guarantee.

They will offer the terms you ask for. If you dont ask for specific terms they will offer a selection.

My question is does anyone know of an online search facility which accesses all the various annuity providers so I can obtain quotations or estimates of annuities from all or most of the providers?

No. There is no annuity cartel that allows that sort of pricing.

In much the same way that you can check energy suppliers, flights etc?

You dont buy energy the same way you buy annuities. Annuities are put in place via a retailer. There are some online retailers but IFAs typically offer the best annuity rates for apart from the smallest pots.

cgzz

What about Money Advice Service "Compare Annuities" which can be accessed here https://annuities.moneyadviceservice.org.uk/xml/annuitiesMAS/an_form.cfm

newhorizons

Thank you for the information so far it's been a great help to have some comparisons. I am now looking at the flexible drawdown option as I like the idea you keep control of your fund and if you die you can leave the fund to your family or other. Does anyone know if you decide to take the flexible drawdown to start with, then after a year or two can you decide to purchase an annuity with the remaining fund? Also are there any comparison sites for how the pension providers have performed over the last 10 years?

jem16

newhorizons wrote: »

I am now looking at the flexible drawdown option as I like the idea you keep control of your fund and if you die you can leave the fund to your family or other.

At the moment you have to have guaranteed secured income of £12kpa to qualify for flexible drawdown. If you don't have that then it's capped drawdown.

Does anyone know if you decide to take the flexible drawdown to start with, then after a year or two can you decide to purchase an annuity with the remaining fund?

Yes you can.

atush

Also are there any comparison sites for how the pension providers have performed over the last 10 years?

Pension providers don't 'perform'. The funds you put into your pension do. and yes, you can look up the past performance of funds that you are interested in. Online, in broadsheet newspapers etc.

dunstonh

Also are there any comparison sites for how the pension providers have performed over the last 10 years?

There are nearly 30,000 conventional investments you can hold in a modern pension plan. It is they that perform. Not the the pension. However, you dont buy investments on the basis of past performance.

newhorizons

I stand corrected. I realise the pension provider doesn't perform and it's the funds in the various investments, however I assume the provider decides on the specific investments, after you have decided on the amount of risk you want. I know I can check individual providers but I wondered if there is a comparison site. I suppose I've heard of people losing large amounts from their pensions and want to go with a company with a good record of maintaining or increasing the value, subject to market fluctuations. I'm trying to find out what I can before seeing a Financial Advisor.

jem16

newhorizons wrote: »

I stand corrected. I realise the pension provider doesn't perform and it's the funds in the various investments, however I assume the provider decides on the specific investments, after you have decided on the amount of risk you want.

No the provider doesn't decide anything. Either you or your financial adviser will have to make the choices.

I suppose I've heard of people losing large amounts from their pensions and want to go with a company with a good record of maintaining or increasing the value, subject to market fluctuations.

Depending on the company you or your financial adviser choose, there will be internal and external funds on offer. Only the internal funds will have anything to do with the pension company and there will not be as many of those as external funds.

If it's a platform that's chosen, most if not all of the funds will be external. The company has nothing to do with external funds - they are provided by a fund house such as Invesco Perpetual.