Legal & General Fixed Term Retirement Plan - Shambles

Spivo46

I did apply for this product, it fitted my retirement plan. However, after submitting the application i called them to check progress. They told me that the guaranteed quote (38 days) would need to be re-quoted closer to the time because i requested the first payment to be made (end of January 24) and the the figures quoted (guaranteed) would change. What appears to be a very good online quoting system is flawed. The simple L&G question in the online application was; "when would you like the payments to start". "This must be within 3 months of applying". It took me a while to make his decision but now i have to cancel. Who would apply for a product knowing that the returns will be different to what you sign up for? Especially knowing annuity type products are past their peak. 
Should have check trust pilot first, doesn't make great reading!

dunstonh

They told me that the guaranteed quote (38 days) would need to be re-quoted closer to the time because i requested the first payment to be made (end of January 24) and the the figures quoted (guaranteed) would change.

It is standard that the annuity has to commence within the guarantee quote period or the quote will be re-done.

 Who would apply for a product knowing that the returns will be different to what you sign up for?

Most people wouldn't have a deferred start date.   And in most periods, gilt yields are nowhere near as volatile and it wouldn't make a difference.  A deferred date would typically be close to tax year changeover.  i.e. those on an annual income payment who want it paid the other side of the tax year.

If you still have your original quote and you are within the guarantee quote period and the quote didn't specify a start date, you could ask them to honour that.

You may also want to raise a complaint.   Whilst industry professionals will know this, I don't believe there is anything in their documentation that says that.     If a company is retailing direct to consumer, then they are meant to give key risk warnings on key points.

Spivo46

dunstonh said:

They told me that the guaranteed quote (38 days) would need to be re-quoted closer to the time because i requested the first payment to be made (end of January 24) and the the figures quoted (guaranteed) would change.

It is standard that the annuity has to commence within the guarantee quote period or the quote will be re-done.

 Who would apply for a product knowing that the returns will be different to what you sign up for?

Most people wouldn't have a deferred start date.   And in most periods, gilt yields are nowhere near as volatile and it wouldn't make a difference.  A deferred date would typically be close to tax year changeover.  i.e. those on an annual income payment who want it paid the other side of the tax year.

If you still have your original quote and you are within the guarantee quote period and the quote didn't specify a start date, you could ask them to honour that.

You may also want to raise a complaint.   Whilst industry professionals will know this, I don't believe there is anything in their documentation that says that.     If a company is retailing direct to consumer, then they are meant to give key risk warnings on key points.

many Thanks - thats useful feedback
I will challenge this further with a formal complaint and perhaps offer to commence with the plan immediately. It just means paying a little more tax than i had planned to pay. If i fail, its back to the drawdown strategy!
It is only a 3 year plan, A fixed monthly payment and all of the original sum paid back at the end of this term