Mis-selling & Deception by an IFA. How can I get maximum satisfaction?

BrianBadonde

The IFA has asked me for some information in order for them to calculate an offer for the mis-selling aspect (Guaranteed Annuities).

- What age do I want to retire?
- Will I take a tax free lump sum or not?


Obviously, I want to maximise my claim.
The tax free question is an easy one (I think??). NO! That would reduce the benefit.

Retirement age? I don't know how to calculate the figures. Whether 55 or 65 or 67 would give the biggest difference?

I'd be extremely grateful for any pointers.

sandsy

It's not really possible to say without knowing what the original guaranteed annuity rate would have been at each age.

jamesd

Possible answers:

1. No tax free lump sum because that would waste the higher value GAR.

2. Retirement age and taking of the income from a GAR are not the same thing. I would take the GAR at the earliest age at which the highest GAR value is available because that would maximise the benefit to me from the GAR. Other pensions or investments would bridge any gaps if needed and if still working I'd recycle the GAR income into more pension contributions to get tax relief on those.

BrianBadonde

Thanks sandsy / jamesd.

I'll get the GAR figures & come back!

dunstonh

GARs tend to be priced on options taken and vary with age. It won't be one figure. It will be a large table of figures and variants.

BrianBadonde

Thanks guys.

I've got the GARs in PDF format, but can't find a way to attach them?

The policy I transferred from was Royal London. The GARs were :

Non-Protected Rights GARs (mine were all Non-Protected)
55 - £75.61 per £1,000
60 - £85.51
65 - £98.84
67 - £105.22
70 - £116.92
75 - £142.82

****Every individual year is quoted. I've just taken a few.




.

jamesd

75.61% of what? I expect to see a GAR as a percentage of the pot value, with something like 8% being likely. The percentages given are way too high for that.

BrianBadonde

Thanks James

Corrected. It's £ per £1000.

jamesd

Level or inflation-linked, and to what inflation measure? Single or dual life and if dual what spousal pension level (assuming you have a spouse at the time that becomes relevant)? Any guarantee (to pay out for a minimum number of years after purchase if you die)?

The details will depend on the present/future values calculation for the increasing amounts. The value at 65/67 looks good enough even if it's level and if it is inflation-linked it's excellent.

How old you are now and when you really want to retire also matters. 7.561% at 55 even if level is a good deal.

Someone else will probably beat me to the extra return per year calculation but in principle I'd be telling someone who plans to retire at 55 to take the GAR at 55.

mania112

Why is the IFA asking you questions he should know already?

Back to 2004: Why did you move from Royal London?