Annuity - commission sacrifice website

Yaffles

I looked on your site for information about purchasing an annuity and MoneysavingExpert.com suggested on the following page....http://www.moneysavingexpert.com/protect/best-financial-advisers three big specialist annuity advisers, Annuity Bureau, Annuity Direct and William Burrows.

However, all of these sites take full commission. I found a site simply by typing in the word "annuity" into Google where commission is rebated back into the annuity to enhance the terms. You can find this site at www.annuitydiscount.co.uk. This will save me approximately £1254 on a pension fund, after tax free cash is paid, of £220,000 since 57% of the commission was rebated.

They also have a live quote system which allowed me to select the Life Office with the most generous rates - unlike the 3 firms mentioned earlier.

dunstonh

Best rates are typically got from a networked IFA. The enhancements they get regulary beats those mentioned by you. Ed regularly promotes those three providers but other posters have confirmed that their local IFA has come in with better terms.

EdInvestor

I don't "promote" anyone: I only mention these sites for people who are looking for IFAs specialising in retirement arrangments.Your local IFA may be fine but equally he may be mainly a mortgage broker and not have much of an idea about retirement issues of which there are now many.It's an increasingly specialised field.


Re the OP's post, an annuity discount broker would be welcome, however I would still suggest people get a few quotes from other brokers until this company establishes a clear reputation.It may also not be very helpful for the majority who have funds well under 100k.

dunstonh

There is also a suspicion of new members with 1 post promoting a website.

DavidLaGuardia

dunstonh wrote: »

Best rates are typically got from a networked IFA. .

Networks can negotiate good deals, but so can national IFAs and even smaller ones negotiate euqivalent rates on the comapnies they deal with most, so that an ifa receives waht they would receive from a network after their cut.

wildcard321

Does anyone have any experience of dealing with this company?

EdInvestor

Comparing its deals with FSA rates, the website return seems lower. But perhaps the FSA rates don't include commission.

https://www.fsa.gov.uk/tables

In any case the savings don't look that substantial unless the fund size is very large.Commissions on ordinary annuities are not that high - typically around 1.5% it seems these days ( which is however an appalling 50% rise on typical rates of 1% about 5 years ago :mad: )

dunstonh

Comparing its deals with FSA rates, the website return seems lower. But perhaps the FSA rates don't include commission.

FSA tables assume standard commission is taken. However, FSA tables are notoriously inaccurate due to the data they use been out of date.

EdInvestor

From the FSA site....

Please bear in mind that, although the lifetime annuities shown in the table are updated every 24 hours, Tuesday to Saturday.....

dunstonh

EdInvestor wrote: »

From the FSA site....

Doesnt mean a thing. I can get the figures now and then go direct to provider to get figures asking for exactly the same and they will be different.

Its the datasource feed that doesnt get updated frequently. That said, a few providers have started in the last month to give real time figures. Although it isnt the ones that usually come out top.

Yaffles

Re: "There is also a suspicion of new members with 1 post promoting a website.".

This is my first post here because it's the first and only time I feel I have managed to come out well from any financial institution. I thought it should be brought to your attention.

What is there to be suspicious about? I shopped on the web for ages, also spoke to an IFA (who would not match the commission rebate) and this was the best deal around. I've saved over a grand which I will put towards a holiday I didn't think I could afford.