Fixed Term Annuity Calculator And Any Thoughts? 10 January at 10:45PM in Pensions, annuities & retirement planning 18 replies 1.3K views

GSP

Seeking another IFA as my current one is retiring this year, I had a meeting with an IFA and in a nutshell found the discussion so rewarding, he offered me so many options where my current IFA hasn’t for five years.

I was mainly drawn to a product called Fixed Term Annuity. I saw a youtube video on this, but thought the narrator said there may be no money guaranteed at the end of the term.

After being spooked by the 20% drop over the last year, and trying to protect my fund somewhat for the next seven years before my state pension kicks in, this could be the product I’m looking for as it guarantees an income for just about any length you want. At maturity, it also offers a lump sum back which is as much or as little as you want. Less return at the end means more monthly income, while more end return means less income.

There is a website called Retirementline.co.uk which appears to provide quotes back on about 6 leading providers for this product.

There are many variables on the quote section I could apply to seek the best return for our needs, but believe you can only run one query at a time and it’s a long job to run all the queries.

Does anyone know how best or a similar website where you can make small changes to fine tune a result?

And does anyone have any experience of this product?

As I say I’ve only seen this this afternoon and become aware. There will be a number of things discuss such as how much of our fund would we put into this. And also what should we do with the tax free elements we still have in our drawdown fund, as moving into Fixed Term Annuity doesn’t differentiate between existing uncrystallised and crystallised funds.

I was thinking we could put our funds into this product and use our personal tax allowances from there.

Thanks  

Marcon

GSP said:

Seeking another IFA as my current one is retiring this year, I had a meeting with an IFA and in a nutshell found the discussion so rewarding, he offered me so many options where my current IFA hasn’t for five years.

I was mainly drawn to a product called Fixed Term Annuity. I saw a youtube video on this, but thought the narrator said there may be no money guaranteed at the end of the term.

After being spooked by the 20% drop over the last year, and trying to protect my fund somewhat for the next seven years before my state pension kicks in, this could be the product I’m looking for as it guarantees an income for just about any length you want. At maturity, it also offers a lump sum back which is as much or as little as you want. Less return at the end means more monthly income, while more end return means less income.

There is a website called Retirementline.co.uk which appears to provide quotes back on about 6 leading providers for this product.

There are many variables on the quote section I could apply to seek the best return for our needs, but believe you can only run one query at a time and it’s a long job to run all the queries.

Does anyone know how best or a similar website where you can make small changes to fine tune a result?

And does anyone have any experience of this product?

As I say I’ve only seen this this afternoon and become aware. There will be a number of things discuss such as how much of our fund would we put into this. And also what should we do with the tax free elements we still have in our drawdown fund, as moving into Fixed Term Annuity doesn’t differentiate between existing uncrystallised and crystallised funds.

I was thinking we could put our funds into this product and use our personal tax allowances from there.

Thanks  

Given you've found a good IFA, why not ask him to do the job for you/ask his advice on the product concerned?

GSP

Marcon said:

GSP said:

Seeking another IFA as my current one is retiring this year, I had a meeting with an IFA and in a nutshell found the discussion so rewarding, he offered me so many options where my current IFA hasn’t for five years.

I was mainly drawn to a product called Fixed Term Annuity. I saw a youtube video on this, but thought the narrator said there may be no money guaranteed at the end of the term.

After being spooked by the 20% drop over the last year, and trying to protect my fund somewhat for the next seven years before my state pension kicks in, this could be the product I’m looking for as it guarantees an income for just about any length you want. At maturity, it also offers a lump sum back which is as much or as little as you want. Less return at the end means more monthly income, while more end return means less income.

There is a website called Retirementline.co.uk which appears to provide quotes back on about 6 leading providers for this product.

There are many variables on the quote section I could apply to seek the best return for our needs, but believe you can only run one query at a time and it’s a long job to run all the queries.

Does anyone know how best or a similar website where you can make small changes to fine tune a result?

And does anyone have any experience of this product?

As I say I’ve only seen this this afternoon and become aware. There will be a number of things discuss such as how much of our fund would we put into this. And also what should we do with the tax free elements we still have in our drawdown fund, as moving into Fixed Term Annuity doesn’t differentiate between existing uncrystallised and crystallised funds.

I was thinking we could put our funds into this product and use our personal tax allowances from there.

Thanks  

Given you've found a good IFA, why not ask him to do the job for you/ask his advice on the product concerned?

I am seeking another IFA, so only met him today for an initial meeting. I’m also meeting another one next week and may decide we go with one of the two.

During the second half of today’s meeting, once he started to learn our situation and more about us and requirements, he started suggesting other options we weren’t even aware of.

While we wait for our meeting next week, if possible I would like to play around with numbers on Fixed Term Annuities and how these may fit in if we choose them.

NedS

You can probably achieve the same thing over such a short period (7 years) by constructing a bond ladder of appropriately dated gilts if you wanted to go the DIY route, or if you don't want the hassle then a short fixed term annuity is going to give you the same thing. Over such a short period, I would expect it's going to do little more than repay you your own capital (plus gilt yields of 3.5%pa, less fees). What do the quotes look like?

GSP

NedS said:

You can probably achieve the same thing over such a short period (7 years) by constructing a bond ladder of appropriately dated gilts if you wanted to go the DIY route, or if you don't want the hassle then a short fixed term annuity is going to give you the same thing. Over such a short period, I would expect it's going to do little more than repay you your own capital (plus gilt yields of 3.5%pa, less fees). What do the quotes look like?

I don’t know yet NedS, we were in a room and the IFA we were seeing had a screen and we saw a result flash up very quickly, but didn’t jot it down as we were wrapping the meeting up. We walked away thinking that looked positive though and now back at home want to be able to interrogate a system if I can find one to pull all sorts of Fixed Term annuity scenario’s out of it.

JohnWinder

There are many variables on the quote section I could apply to seek the best return for our needs, but believe you can only run one query at a time and it’s a long job to run all the queries.

I count eleven variables if you include name, dob etc., so not so onerous, with most designed to help them target you with unsolicited emails and calls, which I can report have already started. And in exchange, the quotes they provided online were for 5 years only, and none had inflation protection. Essentially they offered about 22%/year of whatever you contributed, for each of 5 years of income.

It's a marketing tool more than a useful quoting system, and another hand dipping into your pot perhaps.

NedS

JohnWinder said:

There are many variables on the quote section I could apply to seek the best return for our needs, but believe you can only run one query at a time and it’s a long job to run all the queries.

I count eleven variables if you include name, dob etc., so not so onerous, with most designed to help them target you with unsolicited emails and calls, which I can report have already started. And in exchange, the quotes they provided online were for 5 years only, and none had inflation protection. Essentially they offered about 22%/year of whatever you contributed, for each of 5 years of income.

It's a marketing tool more than a useful quoting system, and another hand dipping into your pot perhaps.

Which is exactly as you would expect, repaying you your own capital plus a small compensation based on short duration gilt yields, less their fees.  As 10 year gilt yields are currently near identical to 5 year yields, I would not expect a quote for a longer period of up to 10 years to significantly differ in terms of the offer.

David99M

Hi, I opened a fixed term annuity with Legal and General recently. They offered the best return and their product was by far the most flexible. You can go onto their website and it's called Fixed Term Retirement Plan. You can do 6 quotes and play around with different selected income levels etc. Minimum term is 3 years. I did a 3 year term with no income selected and it will pay me back my original sum plus 15% after the 3 years. I also get the right to make 3 withdrawals during the term or take the whole lot to move into another product. So for me this is like a 3 year bond with no risk and I can access if necessary. 
If you want to draw an income and also have some left at maturity you can do that too.
Retirementline are very good and will answer any questions you have. I don't think they charge  either and just get commission from L&G. No point in paying an IFA for this kind of advice!

GSP

David99M said:

Hi, I opened a fixed term annuity with Legal and General recently. They offered the best return and their product was by far the most flexible. You can go onto their website and it's called Fixed Term Retirement Plan. You can do 6 quotes and play around with different selected income levels etc. Minimum term is 3 years. I did a 3 year term with no income selected and it will pay me back my original sum plus 15% after the 3 years. I also get the right to make 3 withdrawals during the term or take the whole lot to move into another product. So for me this is like a 3 year bond with no risk and I can access if necessary. 
If you want to draw an income and also have some left at maturity you can do that too.
Retirementline are very good and will answer any questions you have. I don't think they charge  either and just get commission from L&G. No point in paying an IFA for this kind of advice!

Thanks David,

I got to here.
https://www.legalandgeneral.com/retirement/retirement-income-calculator/?cid=PPCGENPAnnuitiesFixedTermCalculatorGoogle001&ef_id=Cj0KCQiAq5meBhCyARIsAJrtdr7Az6i4as9Fkso8IURbnsdhWiz8qWUzp5G6nkGnxKQRZRBA2KxFhPYaAljpEALw_wcB:G:s&s_kwcid=AL!12569!3!634039474007!p!!g!!fixed%20term%20annuities%20calculator&nst=0&gclsrc=aw.ds&gclid=Cj0KCQiAq5meBhCyARIsAJrtdr7Az6i4as9Fkso8IURbnsdhWiz8qWUzp5G6nkGnxKQRZRBA2KxFhPYaAljpEALw_wcB

but could you please provide the link to the area you mention. I can see a number of options, but not quite your one.
Thanks

dunstonh

 don't think they charge  either and just get commission from L&G. No point in paying an IFA for this kind of advice!

You do realise that commission is a form of fee and a commission that is higher than a fee will usually mean a lower annuity rate.

jayjays

GSP said:

David99M said:

Hi, I opened a fixed term annuity with Legal and General recently. They offered the best return and their product was by far the most flexible. You can go onto their website and it's called Fixed Term Retirement Plan. You can do 6 quotes and play around with different selected income levels etc. Minimum term is 3 years. I did a 3 year term with no income selected and it will pay me back my original sum plus 15% after the 3 years. I also get the right to make 3 withdrawals during the term or take the whole lot to move into another product. So for me this is like a 3 year bond with no risk and I can access if necessary. 
If you want to draw an income and also have some left at maturity you can do that too.
Retirementline are very good and will answer any questions you have. I don't think they charge  either and just get commission from L&G. No point in paying an IFA for this kind of advice!

Thanks David,

I got to here.
https://www.legalandgeneral.com/retirement/retirement-income-calculator/?cid=PPCGENPAnnuitiesFixedTermCalculatorGoogle001&ef_id=Cj0KCQiAq5meBhCyARIsAJrtdr7Az6i4as9Fkso8IURbnsdhWiz8qWUzp5G6nkGnxKQRZRBA2KxFhPYaAljpEALw_wcB:G:s&s_kwcid=AL!12569!3!634039474007!p!!g!!fixed%20term%20annuities%20calculator&nst=0&gclsrc=aw.ds&gclid=Cj0KCQiAq5meBhCyARIsAJrtdr7Az6i4as9Fkso8IURbnsdhWiz8qWUzp5G6nkGnxKQRZRBA2KxFhPYaAljpEALw_wcB

but could you please provide the link to the area you mention. I can see a number of options, but not quite your one.
Thanks

What a faff, I registered and now have an account, I log in, its says hello, I open up the header "Products" and nothing happens