Annuity Quotes on MoneyHelper question

Lowtrawler

Reclining_Chair said:

Ps. I'm only thinking of buying an annuity today starting when I'm 58 (in a year's time) because I would like to lock in the annuity rate. Annuity rates seem favourable right now and might fall too much for me to afford retirement if I leave it for another year.

If this is your concern, you can purchase a bond tracker which will mirror the annuity investments e.g., if it becomes more expensive to buy the annuity in a year's time, the annuity tracker will have increased by a similar amount - if it becomes cheaper, the tracker will have fallen in price.

If you wish to track conventional annuities - IGLT; to track RPI linked annuities - INXG. Obviously, it's not an exact match but it should be close enough.

Kikynethus

In my case (very much current) the annuity comparisons produced by MoneyHelper are hugely optimistic. Based on exactly the same answers to age, location, pension pot, lifestyle and medical history questions, MoneyHelper estimates are inflated by around 10% which is a massive discrepancy when someone is trying to plan for a retirement. And the inflated figures are across the board, not with just one annuity provider. This government is untrustworty enough without their departments giving out misleading information.

DRS1

Who are you comparing them to?  And are you getting the quotes on the same day?

dunstonh

Kikynethus said:

In my case (very much current) the annuity comparisons produced by MoneyHelper are hugely optimistic. Based on exactly the same answers to age, location, pension pot, lifestyle and medical history questions, MoneyHelper estimates are inflated by around 10% which is a massive discrepancy when someone is trying to plan for a retirement. And the inflated figures are across the board, not with just one annuity provider. This government is untrustworty enough without their departments giving out misleading information.

Moneyhelper quotes tend to understate in my experience as they assume market rates and not the final rates that IFAs get.  In some cases IFAs will get the same rates but in many they get higher.

However, the data is snapshotted and not live.    Annuity rates are falling and snapshotted rates could be a few days to a week behind live rates.

Also, if you have used an online annuity distribution service, you have to factor their commission into the quote you have got.

westv

dunstonh said:

Kikynethus said:

In my case (very much current) the annuity comparisons produced by MoneyHelper are hugely optimistic. Based on exactly the same answers to age, location, pension pot, lifestyle and medical history questions, MoneyHelper estimates are inflated by around 10% which is a massive discrepancy when someone is trying to plan for a retirement. And the inflated figures are across the board, not with just one annuity provider. This government is untrustworty enough without their departments giving out misleading information.

Moneyhelper quotes tend to understate in my experience as they assume market rates and not the final rates that IFAs get.  In some cases IFAs will get the same rates but in many they get higher.

However, the data is snapshotted and not live.    Annuity rates are falling and snapshotted rates could be a few days to a week behind live rates.

Also, if you have used an online annuity distribution service, you have to factor their commission into the quote you have got.

I'd suggest they are slipping back rather than falling. 😀