Annuity without using financial adviser

zagfles

incus432 said:

zagfles said:

The rules still seem to be based on pre pension freedoms and the associated bureaucracy, when people usually bought an annuity either from their pension provider, or took the "open market option" and bought the annuity from someone else. It seems that if you choose the OMO then you're still subject to the rules of your pension scheme, and if you change your mind your pension scheme is still on the hook. So they may delay paying the PCLS. 

But the alternative is to transfer the entire pension, so they'd transfer to what the call an "immediately vesting personal pension" and they pay your PCLS from that and buy the annuity. It seems that because you're transferring the entire pension they're off the hook for everything. 

When you talk about the pension scheme beong on or off the hook, what for? Is it about cancellation rights?

Yes I've seen one example where the scheme delays paying the PCLS with OMO because of cancellation rights. But no delay with IVPP. Might be other stuff as well. 

incus432

Among the quotes received I note the Canada life one says it is 'a flexi-access income drawdown product not an annuity’ whereas the others are annuities. Does this make any practical difference?

FIREDreamer

incus432 said:

Among the quotes received I note the Canada life one says it is 'a flexi-access income drawdown product not an annuity’ whereas the others are annuities. Does this make any practical difference?

Yes, an annuity will be a fixed periodic income with any increases as specified at outset. A flexible access drawdown product will let you take out whatever you want, whenever you like, but you run the risk of run out of money if you take too much out.

incus432

FIREDreamer said:

incus432 said:

Among the quotes received I note the Canada life one says it is 'a flexi-access income drawdown product not an annuity’ whereas the others are annuities. Does this make any practical difference?

Yes, an annuity will be a fixed periodic income with any increases as specified at outset. A flexible access drawdown product will let you take out whatever you want, whenever you like, but you run the risk of run out of money if you take too much out.

That's not actually the case here- the payments are fixed (or escalating if preferred) and guaranteed for the term.

The Fixed Term Income Plan is a flexi-access
income drawdown plan which allows your
savings from registered pension scheme(s) to
provide you with the combination of a regular
guaranteed income and a guaranteed lump sum
at the end of your chosen term (we call this the
Guaranteed Maturity Value) over a specified
term of your choice.

FIREDreamer

incus432 said:

FIREDreamer said:

incus432 said:

Among the quotes received I note the Canada life one says it is 'a flexi-access income drawdown product not an annuity’ whereas the others are annuities. Does this make any practical difference?

Yes, an annuity will be a fixed periodic income with any increases as specified at outset. A flexible access drawdown product will let you take out whatever you want, whenever you like, but you run the risk of run out of money if you take too much out.

That's not actually the case here- the payments are fixed (or escalating if preferred) and guaranteed for the term.

The Fixed Term Income Plan is a flexi-access
income drawdown plan which allows your
savings from registered pension scheme(s) to
provide you with the combination of a regular
guaranteed income and a guaranteed lump sum
at the end of your chosen term (we call this the
Guaranteed Maturity Value) over a specified
term of your choice.

That sounds more like a temporary annuity.

SmokeysTravels

It just means it is a fixed term annuity, written under FAD rules so you will trigger the MPAA. It is to distinguish it from a lifetime pension annuity that does not. 

incus432

That's not actually the case here- the payments are fixed (or escalating if preferred) and guaranteed for the term.

The Fixed Term Income Plan is a flexi-access
income drawdown plan which allows your
savings from registered pension scheme(s) to
provide you with the combination of a regular
guaranteed income and a guaranteed lump sum
at the end of your chosen term (we call this the
Guaranteed Maturity Value) over a specified
term of your choice.

That sounds more like a temporary annuity.

  That's what is puzzling me . All info looks very similar to the other quotes which are fixed term annuities but this one is very specific : 'this is a flexi-access income drawdown product not an annuity’.  All of them state the MPAA is triggered

FIREDreamer

incus432 said:

That's not actually the case here- the payments are fixed (or escalating if preferred) and guaranteed for the term.

The Fixed Term Income Plan is a flexi-access
income drawdown plan which allows your
savings from registered pension scheme(s) to
provide you with the combination of a regular
guaranteed income and a guaranteed lump sum
at the end of your chosen term (we call this the
Guaranteed Maturity Value) over a specified
term of your choice.

That sounds more like a temporary annuity.

  That's what is puzzling me . All info looks very similar to the other quotes which are fixed term annuities but this one is very specific : 'this is a flexi-access income drawdown product not an annuity’.  All of them state the MPAA is triggered

Ah, none of them are lifetime annuities as these don’t trigger MPAA.

dunstonh

incus432 said:

Among the quotes received I note the Canada life one says it is 'a flexi-access income drawdown product not an annuity’ whereas the others are annuities. Does this make any practical difference?

Canada Life wraps the annuity within the drawdown plan.   It does have more flexibility if you want an all-in-one product but if you just want it to work like a annuity only option, then it can.

wjr4

incus432 said:

In arranging the annuity via the broker I had expected to take the tax free sum from the SIPP provider first but the broker tells me that will be paid out by the insurer as part of arranging the annuity. Is this standard (if so why?) or just a ruse to increase commission by increasing the pot being transferred over?

I’d be asking what the commission is now and seeing if you can get it cheaper elsewhere for full advice.