Legal and General pensions forcast

cyclonebri1

Hi, due to quite possibly having to take early retirement through ill health, I have today asked L&G to provide me with an "immediate" pension offer. (excuse my terminology, but I'm sure you know what I think I mean).

Question is am I right in assuming I can take the accumulated pot anywhere to by a pension? If so will L&G make me aware of this?

The pot I have in mind is made up of a private pension I held with them for 15 years, and several compensation policies added to that for pensions mis-selling, just in case it makes any difference

And without asking for direct advise am I likely, assuming the answer to Q1 is yes, to find a better provider elsewhere?

:beer: in advance.

dunstonh

am I right in assuming I can take the accumulated pot anywhere to by a pension?

Yes.

If so will L&G make me aware of this?

Yes. Although they may not supply the forms to do this unless you request them.

am I likely, assuming the answer to Q1 is yes, to find a better provider elsewhere?

Depends. You may have guaranteed annuity rates which cannot be beaten. Although with ill health, there are number of providers which can pay enhanced terms.

You should see an IFA and get them to run off some quotes from the ill health providers (a number of whom, including the one that normally comes out top will only deal with IFAs and not direct). Until the IFA has presented your medical details to the providers you are not going to get accurate figures to compare against.

Aurum_Argentum

Hi cyclonebri1
You should be told that you have the option to take your fund to any annuity provider.
Please be aware that you may be able to get and impaired life annuity.
As you are forced to take early retirement because of ill health you should try and maximise the amount of money that you get when purchasing an annuity.
I would recommend that you have an initial consultation with an independent financial adviser.

cyclonebri1

Thanks guys for backing up what I thought/had in mind/ cheers to all and a merry xm's

:beer:
B,

cyclonebri1

Aurum_Argentum wrote: »

Hi cyclonebri1
You should be told that you have the option to take your fund to any annuity provider.
Please be aware that you may be able to get and impaired life annuity.
As you are forced to take early retirement because of ill health you should try and maximise the amount of money that you get when purchasing an annuity.
I would recommend that you have an initial consultation with an independent financial adviser.

I have always shyed away from anyform of finincial advice, largely due to the fact that I don't quite understand how any IFA can be completely independant when effectively his living/comission is entirely down to how well he sells?

Also, should I expect to have to pay for an initial visit, or is it done on a speculative basis? Do you only get charged on arrangements they "arrange"? As you see this is a little new to me.

Please no offence meant to anyone here, as my views are purely based on not having rather having had any previous advice:A

So how do I find an IFA in my area (Derbys), who specialises in pensions arranging?

Apologies if my question infringes any direct advicde policy here.

EdInvestor

Put "annuities" into the forum search box and you should find several threads about shopping around for the best deal.

cyclonebri1

EdInvestor wrote: »

Put "annuities" into the forum search box and you should find several threads about shopping around for the best deal.

Am on the case,:beer:

dunstonh

I have always shyed away from anyform of finincial advice, largely due to the fact that I don't quite understand how any IFA can be completely independant when effectively his living/comission is entirely down to how well he sells?

Its up to you if the IFA earns a commission or not. If you have any doubts then just agree the level of remuneration. The term "customer agreed remuneration" is the phrase to cover that.

Annuities are a doddle though as the commission is generally 1%-1.5% and the goal is to go with the provider that pays the highest income to you.

Also, should I expect to have to pay for an initial visit, or is it done on a speculative basis? Do you only get charged on arrangements they "arrange"? As you see this is a little new to me.

First appointment will be free as you cannot be charged for something you do not know the charges for.

So how do I find an IFA in my area (Derbys), who specialises in pensions arranging?

You don't need a specialist. Annuity purchase is a bread and butter transaction that any IFA can do. www.unbiased.co.uk will give you the national list of IFAs which you can view by post code (do not use the other filter options as they are far too aggressive. i.e. pick one qualification and it will only show those with that type and not those with an equivalent or higher)

Annuity purchase is not difficult but there is a lot of paperwork and if you have multiple pension sources it can stop being an open market option and become a transfer. Also knowing what options to take and how they will impact on price can make it confusing. i.e. in arrears/advance, with or without proportion, capital buy back or not, guarantee level, increasing or level etc.

Doing it yourself doesnt usually save any money because the providers will just keep the commission for themselves and pay the same rate (or less). Also a number of providers refuse to deal direct with the public and only transact through an IFA. Particulary the enhanced annuity providers for smokers and ill health.

Its one of these areas where using an IFA doesnt cost you anything more than doing it yourself and everyone is a winner. If you have a large fund (typically 100k plus) then you should be able to get better terms from your IFA.

cyclonebri1

Again, thanks again:beer:

Thinking about your last point, I have about 50K in my personnal pension,, which I have asked for the forcast on, but have a further £50K in my opted out serps fund. This is again with L&G. I had considered waiting a few years to take the serps opt out fund, am I correct in my thinking? I think I must be as any enhanced broker terms will not offset this early option.

Is it a linear relationship regarding taking an annuity on 50K as against 100K?

Also after a few random searches L&G who I'm with appear to offer the best terms.

I have made several enquiries to see if my problems qualify under impaired life conditions but as yet no replies,

cyclonebri1

Boing, as I edited the post;)

dunstonh

Also after a few random searches L&G who I'm with appear to offer the best terms.

L&G can be beaten. They are good if you dont smoke and are in good health (less than 2 regular medications). However, enhanced terms will beat them.

I have made several enquiries to see if my problems qualify under impaired life conditions but as yet no replies,

Takes about 2 minutes for the best company in this area to tell you. Although they dont deal with the public direct. The others tend to email or fax back within an hour or two.

Is it a linear relationship regarding taking an annuity on 50K as against 100K?

Depends on provider but 100k may give you a better percentage rate than 50k. Especially with those providers where you can haggle a better percentage out of them due to size of fund.