Current annuity rates

petemcdermott2009

Is it possible to get a feel for current rates without filling in a large form from an IFA?

k_man

The following gives a good indication (although not necessarily the absolute best rates available)

https://www.hl.co.uk/retirement/annuities/best-buy-rates

cobson

Compare guaranteed income products (annuities) - NEW (moneyhelper.org.uk)

dunstonh

Is it possible to get a feel for current rates without filling in a large form from an IFA?

Yes.  Although the rates you will get will be basic rates without commercial uplifts that IFAs usually get or any of the medical/lifestyle enhancements that may apply.

Also, you wont get all options considered.  

bostonerimus

dunstonh said:

Is it possible to get a feel for current rates without filling in a large form from an IFA?

Yes.  Although the rates you will get will be basic rates without commercial uplifts that IFAs usually get or any of the medical/lifestyle enhancements that may apply.

Also, you wont get all options considered.  

What's the logic behind "commercial uplifts that IFAs usually get"?

[Deleted User]

Something like an annuity… Its an irreversible decision. There is a surprising number of options.  Personally I would either read lots and lots or consult a specialist. Ideally both. And brokers like IFAs do get special rates. Personally I would look for an annuity specialist rather than just a generic advisor. And its easy to compare to see if you got a good deal. 

Linton

bostonerimus said:

dunstonh said:

Is it possible to get a feel for current rates without filling in a large form from an IFA?

Yes.  Although the rates you will get will be basic rates without commercial uplifts that IFAs usually get or any of the medical/lifestyle enhancements that may apply.

Also, you wont get all options considered.  

What's the logic behind "commercial uplifts that IFAs usually get"?

Removes cost of dealing with individual customers. You often get a better price from a retailer than if you bought from the manufacturer.

cobson

What fees do customers pay to brokers/IFAs for arranging annuities ?

ukdw

I've just filled in one of those long forms myself, in fact had to go to a 2nd form to fit in all health declarations!  

Will be interesting to see what sort difference the enhancement makes.

Even at the basic HL ~6% for Age60 Level Joint 50% I think is worth considering as rates are apparently about 58% up since December.   6% is a fair bit higher than my current DC withdrawal rate too.

I was going to wait until I was about 70 before considering annuities - but am thinking it may be worth moving a percentage of my DC pot over now.

Not sure what the likely break even point is between level vs RPI annuities - but I suspect it may be >30 years - so will probably go for Level rather than RPI or escalating.

westv

Linton said:

bostonerimus said:

dunstonh said:

Is it possible to get a feel for current rates without filling in a large form from an IFA?

Yes.  Although the rates you will get will be basic rates without commercial uplifts that IFAs usually get or any of the medical/lifestyle enhancements that may apply.

Also, you wont get all options considered.  

What's the logic behind "commercial uplifts that IFAs usually get"?

Removes cost of dealing with individual customers. You often get a better price from a retailer than if you bought from the manufacturer.

What sort of differences are we talking about on average? On average a few hundred £s??

NedS

ukdw said:

I've just filled in one of those long forms myself, in fact had to go to a 2nd form to fit in all health declarations!  

Will be interesting to see what sort difference the enhancement makes.

Even at the basic HL ~6% for Age60 Level Joint 50% I think is worth considering as rates are apparently about 58% up since December.   6% is a fair bit higher than my current DC withdrawal rate too.

I was going to wait until I was about 70 before considering annuities - but am thinking it may be worth moving a percentage of my DC pot over now.

Not sure what the likely break even point is between level vs RPI annuities - but I suspect it may be >30 years - so will probably go for Level rather than RPI or escalating.

Even a single life RPI with 5 year guarantee is quoted at 4.145% - significantly above the oft-quoted SWR and with zero associated risk. If you are happy to live with a simple 3% escalation (better than many DB pensions capped at 2.5%) then it's 5.16%, and that's without any health conditions taken into consideration.