sense check on annuity quotes

Brie

So still trying to plan my retirement.  Thanks goodness I'm not really working anymore as otherwise I don't think I'd have the time!!

So anyways a few months back I did a annuity quote via MoneyHelper and it came up with a few decent (ish) quotes from providers such as Aviva and LV and a number of others.  LV came out on top.  When I went back to have another look I had to resubmit all the info and LV had disappeared completely off the list.  Not sure why.  Any ideas?

Anyways I had liked the LV quote which was over £8k a year. 

I've just redone the quotes and now Aviva is the top one, again over £8k so that's good. 

The thing is I've also had quotes done via HUB who have also come up with Aviva as the top provider but with a figure of £6490 a year.  Now the difference, I believe, is down to the fact that the HUB quote includes me taking a 25% TFLS so the annuity is based on a top fund amount of £110740 rather than the £147650 that MH uses.  Does that sound correct?

Also on the MH quote they have actually given me 3 different quotes - 1 for DC1 & 1 for DC2 & 1 combining DC1&2.  For the first and the last of these they state I'm married (correct) but for the middle one they say I'm single.  Given that I'm not asking for a spouses pension would that make any difference?

AND HUB takes a percentage on DC1 but not DC2.  This leads me to think that I should go directly to Aviva (or whomever) so as to not lose a small percentage.  Or would that still happen?

fyi - predominantly the same basic information was used for both MH & HUB other than 1 health question which I was unable to answer correctly on MH (said no to a condition I've had for decades as I can't give any test results). In both scenarios I've asked for monthly payment in arrears,  3% increase annually, 10 year guarantee.  With MH I asked for a start in 6 months (there was a thought that LV wouldn't quote if it was for too soon) and HUB is immediate.  

dunstonh

Also on the MH quote they have actually given me 3 different quotes - 1 for DC1 & 1 for DC2 & 1 combining DC1&2.  For the first and the last of these they state I'm married (correct) but for the middle one they say I'm single.  Given that I'm not asking for a spouses pension would that make any difference?

Did you specify OMO or IVPPP?   OMO would treat each plan individually - i.e. you end up wtih multiple annuities.  IVPPP would combine them.

Spouse benefits would depend on the details input and not be plan specific.

AND HUB takes a percentage on DC1 but not DC2.  This leads me to think that I should go directly to Aviva (or whomever) so as to not lose a small percentage.  Or would that still happen?

Aviva's in-house team take a commission on percentage basis.    Is their percentage lower or higher than HUB?

Moneyhelper quotes tend to be generic and do not include uplifts that may exist to IFAs or other distribution channels.

Brie

dunstonh said:

Also on the MH quote they have actually given me 3 different quotes - 1 for DC1 & 1 for DC2 & 1 combining DC1&2.  For the first and the last of these they state I'm married (correct) but for the middle one they say I'm single.  Given that I'm not asking for a spouses pension would that make any difference?

Did you specify OMO or IVPPP?   OMO would treat each plan individually - i.e. you end up wtih multiple annuities.  IVPPP would combine them.

Spouse benefits would depend on the details input and not be plan specific.

AND HUB takes a percentage on DC1 but not DC2.  This leads me to think that I should go directly to Aviva (or whomever) so as to not lose a small percentage.  Or would that still happen?

Aviva's in-house team take a commission on percentage basis.    Is their percentage lower or higher than HUB?

Moneyhelper quotes tend to be generic and do not include uplifts that may exist to IFAs or other distribution channels.

@dunstonh - OMO??  IVPPP????  no idea what you're talking about!!

as for spouse benefits - the only thing specified is the 10 year guarantee, not a % to the OH when I pop my clogs.

will need to check on what Aviva will want but I assumed it would be somewhat similar in both.  (but one should never assume....)

dunstonh

@dunstonh - OMO??  IVPPP????  no idea what you're talking about!!

I wondered but was hoping your quote providers had gone through the options with you.

IVPPP is transfer with the receiving scheme paying the TFC.  OMO sees the ceding scheme pay the TFC and transfer the 75% element to the annuity provider.      

Brie

dunstonh said:

@dunstonh - OMO??  IVPPP????  no idea what you're talking about!!

I wondered but was hoping your quote providers had gone through the options with you.

IVPPP is transfer with the receiving scheme paying the TFC.  OMO sees the ceding scheme pay the TFC and transfer the 75% element to the annuity provider.      

Ah!  The idea was to have the 2 DCs be combined into 1 annuity.  But nothing was said about TFC.  I assume (!) that's the tax free bit?

OldMusicGuy

The quotes change frequently based on a number of factors, which could include how much business the providers  want to get. I did various quotes through Moneyhelper and when I went through an intermediary Just came out significantly higher than any other quote I had previously got.

I also found this when we took out an immediate care needs annuity for my FiL. We got some initial quotes to start with when we were deciding whether or not to take out the annuity, and when we actually committed a few weeks later the intermediary got a higher quote from a different provider.