annuity single life. No advice needed re my finances

[Deleted User]

I have successfully conducted our financial affairs for 12 years, including pensions, vesting, drawdown etc and have been widowed for 2 1/2 years. I will be 70 in a few months and have decided to get an annuity with a portion of my sipp. This will combine with other pensions for safe income and I will continue to work on my sipp ie to increase in value, at the moment I am in cash as I anticipate a market slump

I do not want advise about my finances but would like an IFA to find me the best deal through the whole market. Can this be done? I know the exact sum I would be placing into an annuity and will not be looking for 25% tax free.

Anyone have anything to say about Billy Burrows, I went onto his site earlier, no details, just looking

LHW99

An IFA would likely have to consider all your situation in order to ensure they could suggest the best deal. That would probably include a summary of your overall financial position. It seems to go with the territory, probably as part of the justification for being able to be called an independent financial advisor.

JoeCrystal

kittie wrote: »

Anyone have anything to say about Billy Burrows, I went onto his site earlier, no details, just looking

I had a look at William Burrows site and they don't provide any financial advice.

"3.1 We are not a financial adviser, nor are we authorised and regulated by the Financial Conduct Authority. Nothing on the site may be interpreted as financial advice."

xylophone

https://directory.moneyadviceservice.org.uk/en

https://societyoflaterlifeadvisers.co.uk/

https://www.pensionsadvisoryservice.org.uk/about-pensions/retirement-choices/annuity-jargon-explained?moreInfo=11

https://www.moneyadviceservice.org.uk/en/tools/annuities

https://www.moneymarketing.co.uk/fca-asks-ifa-prove-annuity-sales-offer-best-rates/

tacpot12

You can use an IFA or an annuity broker to look at the whole of the market for you. There is less protection if you use a broker, but if you know what your want, and just want to get the best offer, I'm inclined to think a broker would be the best option for you.

Ros Altman has a different POV - see http://www.telegraph.co.uk/finance/personalfinance/pensions/10314411/Annuity-brokers-should-be-banned-says-Ros-Altmann.html

This article may also be of interest: http://www.telegraph.co.uk/finance/personalfinance/pensions/10614359/Rip-off-commissions-exposed-by-100-annuity-broker.html

kidmugsy

kittie wrote: »

I know the exact sum I would be placing into an annuity and will not be looking for 25% tax free.

Goodness me, why not?

tacpot12

Goodness me, why not?

Er, because if you take the 25% tax free cash, you get less from the annuity, and the OP knows what they know to live on. Could be a case of someone who knows not to let the tax tail wag the dog...

bigadaj

tacpot12 wrote: »

Er, because if you take the 25% tax free cash, you get less from the annuity, and the OP knows what they know to live on. Could be a case of someone who knows not to let the tax tail wag the dog...

Still less likely to be the best option though.

The annuity would be taxable, and the 25% could simply be split such that it provides a portion of the income.

kidmugsy

tacpot12 wrote: »

Er, because if you take the 25% tax free cash, you get less from the annuity, and the OP knows what they know to live on. Could be a case of someone who knows not to let the tax tail wag the dog...

That's no answer; she could buy a Purchased Life Annuity with the TFLS.

Or she could use the TFLS to subsidise her deferring her old-style State Retirement Pension - what a bargain annuity purchase that would be.

[Deleted User]

Thanks some very good advice on here. Re the 25% tax free, we each did that when the pensions were vested. I transferred my husbands work pension to a sipp, vested, coped with A day and drewdown when appropriate.

I did not know about annuity brokers but may well look at the William Burrows site when the time is right. Older age hits all of us and I want a portion of my income to be stable, I just want to increase that portion. I am fully aware about risk/reward and am taking my good health into account

I am going to be buying a new house as soon as I find one, then will move and sell this one at leisure and with minimal stress. That is when I intend to buy the annuity, not for several months yet. The sipp will still be fully functioning and I will get back to asset allocation, when the time is right. Thanks for your responses

dunstonh

Annuity brokers are usually more expensive than an IFA where the fund is over £25k. Annuity brokers can still take commission. IFAs cannot. The commission on some of these is 3%-5%. That commission is factored into the annuity rate. Much the same way as the fee an IFA would take is factored in.

So, a fund of say £100k at 3% commission is £3000 but an IFA charging £1500 is cheaper.

Plus, reports indicate that IFAs tend to get better annuity rates. Partly through better completion of health questionnaires and partly through haggling (a number of providers will improve their rate on haggling). Computer generated quotes dont haggle.

Dont forget the 2015 pension freedom rules also saw legislation changes to annuities and there are now more options available. Plus some quirks. Like a certain provider giving better annuity rates on 20 year guarantee than they do on 5 or 10 year.