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Need a reliable IFA (for sourcing an annuity only)
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dunroving said:TheGreenFrog said:In my experience the ease of finding an IFA willing to act on a transactional basis for an annuity is linked to the amount involved, because the amount of work involved is not that different whether you are looking to buy an annuity with £50k or £500k.1
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DRS1 said:There was a thread on here earlier this year I think asking much the same question. The OP on that thread ended up using Retirement Line who are not an IFA but an annuity broker. The IFAs all wanted to do more than just buy an annuity whereas the annuity brokers stick to that one thing. But they are not cheap and if you can find an IFA who will do it you will probably get a better deal that way. There are other such brokers around (including LV= I think. Anyway a google search for pension annuity will probably throw up a decent list) or you could look at Hargreaves Lansdown.
I will see if I can find the thread in case there are any useful suggestions in there or you can ask that OP if he ever found an IFA who could do the job.
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I bought an annuity using Hargreaves Lansdown. I was happy with the income i secured. They were paid 0.8% of the purchase money by the annuity provider.4
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DRS1 said:Well I could not find the thread but the OP may have been @incus432 judging by this post
Anuities Research — MoneySavingExpert Forum1 -
FIREDreamer said:I bought an annuity using Hargreaves Lansdown. I was happy with the income i secured. They were paid 0.8% of the purchase money by the annuity provider.3
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TheGreenFrog said:dunroving said:TheGreenFrog said:In my experience the ease of finding an IFA willing to act on a transactional basis for an annuity is linked to the amount involved, because the amount of work involved is not that different whether you are looking to buy an annuity with £50k or £500k.Most firms will operate a minimum fee.If the annuity purchase price is £40k (i.e. after tax-free cash taken), then you are probably better off on a commission basis via a non-advised distribution service. IFAs get better with larger fund values, where fee tapering or caps result in a fee that is lower than the commission method.HL are indeed competitive for annuities. I have found though that their commission is not strictly % based, or rather if it is then the percentage is higher for smaller sums than larger. But what counts is the income after commission, not the commission.That is important to note as a number of years ago, a client used HL for pricing and got me to quote as well and HL's commission was lower than our fee but the annuity rate I obtained was higher and resulted in a greater monetary amount. I put that largely down to the medical questionnaire completion as I repeatedly went back to get missing and further medical details. Non-advised services will usually take what they are given and not go back to probe for more detailed information.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.6 -
I looked at getting an annuity early 2024 via IFAs.
I got a nice service, but still haven't picked one or use any SIPP funds yet.
If I remember correctly, I was surprised on how little or no difference to me the gross payment would be on 100K, 200K, 300K or 400K, all exact same policies in essence.
I had just assumed getting one annuity for 400K would get me better value than getting 4 X 100K policies, 4 times the paperwork.
The IFAs agreed with my views and said they would reduce their fees on the bigger figure annuities to get me more value, but not much extra value in my opinion.
My pick up was maybe do a few different annuities with various inflationary choices or maybe do a fixed term say 15 years(the do years)
Now my SIPP has dropped about 17/18% in the last 3 months makes looking at annuities now a bit horrible in my little head, it's 100% equities and is very USA/Tech heavyweight, most friends SIPPs have mosty dropped between 6 to 12%
I'll keep my SIPP and possibly annuities on monitor.1 -
dunstonh said:TheGreenFrog said:dunroving said:TheGreenFrog said:In my experience the ease of finding an IFA willing to act on a transactional basis for an annuity is linked to the amount involved, because the amount of work involved is not that different whether you are looking to buy an annuity with £50k or £500k.Most firms will operate a minimum fee.If the annuity purchase price is £40k (i.e. after tax-free cash taken), then you are probably better off on a commission basis via a non-advised distribution service. IFAs get better with larger fund values, where fee tapering or caps result in a fee that is lower than the commission method.HL are indeed competitive for annuities. I have found though that their commission is not strictly % based, or rather if it is then the percentage is higher for smaller sums than larger. But what counts is the income after commission, not the commission.That is important to note as a number of years ago, a client used HL for pricing and got me to quote as well and HL's commission was lower than our fee but the annuity rate I obtained was higher and resulted in a greater monetary amount. I put that largely down to the medical questionnaire completion as I repeatedly went back to get missing and further medical details. Non-advised services will usually take what they are given and not go back to probe for more detailed information.(Nearly) dunroving0
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incus432 said:DRS1 said:Well I could not find the thread but the OP may have been @incus432 judging by this post
Anuities Research — MoneySavingExpert ForumEverywhere I have looked seems to say 1-3% of fund and the lower the fund the higher the % fee. My fund is just over £100k so would probably incur the higher fee am guessing.Like others have said searching on Unbiased or Vouched for comes up with people who seem to want to manage portfolios etc which is not what I want. I just want to buy a simple single life level annuity at the best rate possible now with a view to stopping work at the end of the tax year 2026. Should have done this earlier this year before the rates dropped! I know I will be paying tax on it until I stop working but better that than waiting a few more months and the rates dropping further or my fund dropping - or both(!) and then having to take what I can get at the time or not being able to stop working!Thanks if you are able to provide this info1 -
Everywhere I have looked seems to say 1-3% of fund and the lower the fund the higher the % fee. My fund is just over £100k so would probably incur the higher fee am guessing.Probably in the ballpark of £1500-£2000.Like others have said searching on Unbiased or Vouched for comes up with people who seem to want to manage portfolios etc which is not what I want.If you use unbiased for advisers near you but untick the box at the bottom, then all your local IFAs should appear. Unbiased doesn't show them as default. You have to untick it for them to appear.Should have done this earlier this year before the rates dropped!They are still higher now than they were earlier in the year.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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