Annuity - commission sacrifice website

dunstonh

Just Retirement were not competitve.

Very unsual if that was the case. They are normally in top 3 if you qualify. Although, the rates you get are dependent on the level of business you place with them. Plus, you can usually negotiate a bit more than their intial quote with decent fund values.

I bought from a discount broker where it was transaction only. At no point have I complained about it- and you are right on the second bit- it got me better terms.

discount broker = IFA with a website. You have complained about having to use an IFA all through this thread.

No. Clearly you seek to overcomplicate a straightforward transaction and have yet to present me with a single compelling reason as to why I should go via an IFA and receive advice.

I'm not saying you should get advice or not. All you needed to do is go fee based and you would have got it cheaper. All we are pointing out here is that your deal wasnt that good.

Plus, you wanting to arrange things directly isnt an ideal solution either. I bought a new Dyson last week. I tried the Dyson website but I was able to get it cheaper through another retailer. That retailer is making money out of it and I have no problem with that. If I had gone direct I would have paid more and the Dyson would have made more than the retailer.

Yaffles

"All you needed to do is go fee based and you would have got it cheaper."

Not when IFAs charge £150 per hour for work I can do myself.

dunstonh

Not when IFAs charge £150 per hour for work I can do myself.

Dont do it fee based then (even if it can work out cheaper than DIY).

You are just sore because we told you that you didnt get it as cheap as you could have.

EdInvestor

Fee income arrangments can be abused.There was an instance the other day: an IFA had a client who wanted to move a small protected rights pension into income drawdown: the IFA found a provider but his network demanded a 500 pound non refundable fee to give unwanted advice on whether the move was in the client's "best interests."

Needless to say neither the client nor the IFA were impressed.

dunstonh

Fee income arrangments can be abused.There was an instance the other day: an IFA had a client who wanted to move a small protected rights pension into income drawdown: the IFA found a provider but his network demanded a 500 pound non refundable fee to give unwanted advice on whether the move was in the client's "best interests."

Needless to say neither the client nor the IFA were impressed.

Where is the fee abuse?

The fact the IFA doesnt hold a licence to do drawdown himself and requires the network to sign off on it is not an abuse. If he wants to avoid the £500 charge then he should get qualified and apply for pensions options licencing. If the consumer doesnt want to pay that £500, then like any other retail product, you buy it from somewhere else who does hold the qualification and licence.

Yaffles

Re: Dont do it fee based then (even if it can work out cheaper than DIY).

I didn't and I doubt very much whether a fee based IFA would have done anything other than string the case along, taking twice as long as they should, and I would have no way of telling whether their time was genuinely spent doing a job I can do myself.

Re: You are just sore because we told you that you didnt get it as cheap as you could have.

It was cheaper than going direct to the Life Offices and it was cheaper than going via an IFA. You just don't like being undercut.

dunstonh

It was cheaper than going direct to the Life Offices and it was cheaper than going via an IFA. You just don't like being undercut.

How can it be cheaper than going to an IFA when you used an IFA?

I dont personally care what you do as it has no impact on me whatsoever. All I am doing is pointing out that your deal is not as good as you thought it was for the value of the fund involved. You could have got cheaper fairly easily.

EdInvestor

dunstonh wrote: »

Where is the fee abuse?

Do you think it is fair to charge a non refundable fee with no guarantee of a result when no "advice" is wanted anyway?What's to stop the network from throwing the application in the bin and pocketing the fee?

The fact the IFA doesnt hold a licence to do drawdown himself

He says he does, but the network demands their service is used.

dunstonh

Do you think it is fair to charge a non refundable fee with no guarantee of a result when no "advice" is wanted anyway?

Yes I do as the fee was known about before any liability to pay took place. If that is what that particular adviser has to charge, then that is his charge. The fact it may be more expensive than an IFA down the road doesnt matter and that doesnt make it unfair.

What's to stop the network from throwing the application in the bin and pocketing the fee?

Fee agreements are issued when work is done on fee basis outlining the costs and terms. That agreement protects both sides as it agrees what the fee is for.

He says he does, but the network demands their service is used.

Advisers can choose their networks and they can choose the options that the networks offer.

Yaffles

Re: "How can it be cheaper than going to an IFA when you used an IFA?"

Well quite simply because they rebated most of the commission which gave me a better rate.