Buy annuity from pension in drawdown

molar59

I have a pension that has been in drawdown for the last 4 years, on the Fidelity platform.  Now  that annuity rates have shot up since then, I am seriously considering buying an annuity from this pension drawdown fund.

Using the Money Helper government website I see various sources for buying the highest paying annuities.  However I can find very little information about converting from drawdown to annuity so have the following questions:

1) These sources for buying an annuity seem to require use of a financial adviser as I don't already have a pension with them (Fidelity does not feature in these highest paying annuities).  Is there any way around having to use a financial adviser to buy an annuity?
2) What is the process buying an annuity from a pension currently in drawdown? I assume the underlying funds have to be sold and the cash transferred to the new provider?
3) Are there any large cost implications or tax implications? 

Thanks in advance for any guidance.

jaypers

I would always advise absolutely anyone who has taken advantage of the pension freedoms, such as drawdown facilities, to speak to an independent financial advisor before committing to anything with their pension plans. There are so many things to take into account and everyone’s circumstances are unique. You’ll get a lot of opinions and advice on here, some good and some bad, but you’ll never get a definitive and/or correct answer. 

dunstonh

1) These sources for buying an annuity seem to require use of a financial adviser as I don't already have a pension with them (Fidelity does not feature in these highest paying annuities).  Is there any way around having to use a financial adviser to buy an annuity?

You don't need to use an IFA but IFAs typically get the best rates.  (better than the online sites most of the time).  Even people that DIY and wouldn't use an IFA normally say they would use an IFA for an annuity thanks to IFA fees typically being lower than the commission taken on the DIY sites.

2) What is the process buying an annuity from a pension currently in drawdown? I assume the underlying funds have to be sold and the cash transferred to the new provider?

If its a SIPP, most of the time, yes.  If its a personal pension, stakeholder or workplace pension then most of the time, no.

3) Are there any large cost implications or tax implications? 

income take on income.