Whether to hire a Financial Advisor or not?

Fuggle

I'm quite well up on finances. I've no problem sorting most things out for myself. However, I've got to the point where I want to convert my pension pots into an annuity. I've had similar quotes from two of the top Annuity providers. I'm just wondering if it's worth getting a financial advisor to see if they've got any better ideas?  If I was completely ignorant on financial matters it would be a no-brainer to get a financial advisor. So I thought I would just ask in here to see what people think?

[Deleted User]

They might also get you better rates 

Fuggle

The two companies I spoke to assure me they quoted their best rates, and those rates are the same as what are quoted on line as being the best available. If an advisor can do better that would be great. I'm just unsure of if it is possible to do better. That's why i'm asking the question in here.

dunstonh

Generally speaking IFAs get better annuity rates than direct to providers or using websites.  Mainly as the value gets higher, IFAs will taper their free.  Whilst the non-advised websites/direct to consumer options take a percentage.    Plus, the providers that IFAs will have access too will often haggle.       With smaller values, there will be litlte or no difference.

The two companies I spoke to assure me they quoted their best rates,

"their best rates" - Frequently I see people provide the sheet that says that is the best rate on the market only to find that there are better elsewhere.  It is a very flawed process and totally unreliable.    The process uses default pricing rather than personalised pricing.

and those rates are the same as what are quoted on line as being the best available.

The online rates are unreliable.  Indeed, IFAs cannot use them themselves as they are not personalised enough.   You would need to have totally perfect health, no lifestyle adjustments and the IFA fee matching the commission rate.

Fuggle

Ok, So it sounds like there are indeed sound reasons to engage an IFA. Thank you both for your help.

tigerspill

And an IFA might give you alternative options that might be better the you buying an annuity.  If you go the IFA route, have an open mind.