Short term annuity

Spivo46

Has anyone taken out a short term annuity without using a broker? Any recommendations? I am looking at a 3 year term but quotes so far via LV and L&G (brokers) involve a 3% fee and that would be in excess of 10k!

GSP

Spivo46 said:

Has anyone taken out a short term annuity without using a broker? Any recommendations? I am looking at a 3 year term but quotes so far via LV and L&G (brokers) involve a 3% fee and that would be in excess of 10k!

If this helps, my IFA is charging a 1% fee for a 5 year fixed annuity. Maybe worth going to an IFA?

xylophone

Did you get a quote from L&G direct?

https://www.legalandgeneral.com/retirement/pension-annuity/guides/guide-to-buying-an-annuity/

Or you could try an IFA

https://adviserbook.co.uk/

Tick "confirmed independent" when the menu comes up and ring round for the fees/charges.

Spivo46

xylophone said:

Did you get a quote from L&G direct?

Yes, a direct quote, but they told me they are just a broker who check the open market for the best rates. i think you are right, i need to bite the bullet and source a good IFA

sparklymarkly

I recently took out a short term (9yrs) annuity direct from L&G. Like you, I didn’t want a huge fee and I knew what I wanted.
It was a very seamless process.

Spivo46

sparklymarkly said:

I recently took out a short term (9yrs) annuity direct from L&G. Like you, I didn’t want a huge fee and I knew what I wanted.
It was a very seamless process.

Thats great to hear. Did they charge you 3% fees? and did you use an advisor to do this for you?

sparklymarkly

Fees were “taken into account when we calculate your quote” is what it said so no actual figure was given.
From what I put in to what I’m getting out, it can’t have been too high. 
No IFA involvement- all done directly with L&G on their website. Mine was called a Cashout Retirement Plan.

Spivo46

sparklymarkly said:

Fees were “taken into account when we calculate your quote” is what it said so no actual figure was given.
From what I put in to what I’m getting out, it can’t have been too high. 
No IFA involvement- all done directly with L&G on their website. Mine was called a Cashout Retirement Plan.

I have worked on this today and concluded that for me this is a win/win. So, I've gone for the L&G Fixed Term Retirement Plan. Paying a monthly payment within my tax free allowance and topped up with some of my TFLS. But, the most enjoyable factor is the peace of mind that a get a guaranteed regular payment and a lump sum worth more that i put in after 3 years. In 3 years i can start stressing again about what i do with the lump again!  

sparklymarkly

Result then!

GSP

I don’t know the size of your pension fund, but did you look at say giving the provider £560k to receive back £500k and what that would bring in?Obviously everyone has different reasons and strategies.

Spivo46

GSP said:

I don’t know the size of your pension fund, but did you look at say giving the provider £560k to receive back £500k and what that would bring in?Obviously everyone has different reasons and strategies.

I have just taken out an L&G retirement fixed term income plan. Putting in a lump sum of £266,250 (after taking the TFLS) it pays £11,300 over 3 years. At the end of the 3 years it pays back £270,000. Peace of mind for 3 years and i can review the position in 2026