Need a reliable IFA (for sourcing an annuity only)

JulieK_2

@dunstonh - thanks for that info - will give that a try! And good to have a bit of a heads up on the potential fees!

incus432

JulieK_2 said:

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 Forum

Yes it was.  The IFA who was willing (but I did not use as he had been on holiday and replied too late) is based in Stockport. Can send details if asked. He sent quotes promptly but as didn't buy from him I can't really comment further. 

@incus432 I am looking for exactly this service and live in Stockport so wondered if you could give me the details of the IFA who was willing to just source and set up an annuity please? An IFA local to me would be great! Also was the £1000 a flat fee or what it worked out at as a percentage of your fund? 

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. 

Thanks if you are able to provide this info

Sent you a private message. IFA quoted 1% of 168k.  For comparision Retirement Line estimated 1.8-2% on a fixed term annuity - but it was actually 1.5% (on 94k pot, 125k inc TFLS) 

JulieK_2

Thank you @incus432 - info appreciated!

dunroving

OP here, back again. ;-)

Well, I learn something new every day. Following some comments on this thread, I thought I'd use Retirement Line just to run an "easy quote" based on £100k (not the correct amount, but near enough) and a "retirement" age (start of annuity, I presume) of 69. Besides the basic flat rate/level lifetime annuities (ca. £11k), it also presented flat rate/level fixed term annuities. The first ones were simply 5-year payouts of ca. £26k for 5 years and ca. £9k for 25 years.

However, later examples included a payout period and a maturity value, which I was unfamiliar with. An example was £6,000 for 5 years and a "maturity value" of (approx.) £91,000. I took this to mean a 5-year income period of £6k, at the end of which there was a terminal payment of £91k.

In that scenario, if the annuitant dies within the 5 years, does the annuity continue to pay out? And does the maturity value still apply (would it be paid out into the estate), or does the annuity company keep the maturity value? 

(I do intend to run a Google search later, but I know this forum will be able to tell me, including possibly some personal experiences, which I value). 

dunstonh

However, later examples included a payout period and a maturity value, which I was unfamiliar with. An example was £6,000 for 5 years and a "maturity value" of (approx.) £91,000. I took this to mean a 5-year income period of £6k, at the end of which there was a terminal payment of £91k.

The will be a fixed term annuity rather than a lifetime annuity.

In that scenario, if the annuitant dies within the 5 years, does the annuity continue to pay out? And does the maturity value still apply (would it be paid out into the estate), or does the annuity company keep the maturity value? 

It all depends on the terms and options selected on the fixed term annuity.

Fixed term annuities are probably not great value at the moment if the plan is to keep rolling them over for life (good rate now but likely to be heading down).  However if the need for income is a fixed term, then they can be.

dunroving

dunstonh said:

However, later examples included a payout period and a maturity value, which I was unfamiliar with. An example was £6,000 for 5 years and a "maturity value" of (approx.) £91,000. I took this to mean a 5-year income period of £6k, at the end of which there was a terminal payment of £91k.

The will be a fixed term annuity rather than a lifetime annuity.

In that scenario, if the annuitant dies within the 5 years, does the annuity continue to pay out? And does the maturity value still apply (would it be paid out into the estate), or does the annuity company keep the maturity value? 

It all depends on the terms and options selected on the fixed term annuity.

Fixed term annuities are probably not great value at the moment if the plan is to keep rolling them over for life (good rate now but likely to be heading down).  However if the need for income is a fixed term, then they can be.

Thanks for that. This option (5 year fixed income followed by maturity value) works well for me. I've been quite surprised at the flexibility of annuities available now. My thinking is that, at 68 yo, I don't want the bulk of my assets sitting at the whims of The Donald and our Chancellor, so want some stability and guarantees for the SIPP part at least (am invested in a S&S ISA, and have Premium Bonds and savings accounts). I am pretty healthy and live a healthy lifestyle, but early mortality is in the family genes - which is a double-whammy for traditional lifetime annuities. I don't have any of the typical health conditions associated with an enhanced annuity, but several male members of the family have died suddenly. 

The 5-year fixed term + maturity value option gives me the flexibility in 5 years to make further decisions. I understand your point about changes in annuities over the 5 years, but my age and health will also change over that period and it gives me the option to cover healthcare costs, buy an enhanced annuity if my health has changed, gift to charity, etc. 

Still making decisions but I've now had a very helpful discussion with reps from RetirementLine and a company called Compare Pension Annuity.