Finding an annuity

dunroving

This has been a very useful thread for me (plus the other recent annuities threads I have found on the MSE forum).

Re: the IFA charges vs broker commission comparison, is this any different for a fixed term annuity than a lifetime annuity? I'm currently planning to use ca. £110,000 SIPP to purchase a 5-year level annuity of £6,000, with a maturity value at the end that would be similar to the initial capital. I won't muddy the waters of this thread by going into the explanation of why, but I wondered if there is an argument to be made for IFA vs broker in this scenario (fixed term annuity rather than lifetime annuity)?

westv

I see the HL annuity quote calculator seems to be broken at the moment. It only seems to be supplying L&G figures.

incus432

dunroving said:

This has been a very useful thread for me (plus the other recent annuities threads I have found on the MSE forum).

Re: the IFA charges vs broker commission comparison, is this any different for a fixed term annuity than a lifetime annuity? I'm currently planning to use ca. £110,000 SIPP to purchase a 5-year level annuity of £6,000, with a maturity value at the end that would be similar to the initial capital. I won't muddy the waters of this thread by going into the explanation of why, but I wondered if there is an argument to be made for IFA vs broker in this scenario (fixed term annuity rather than lifetime annuity)?

I think the same considerations apply.  I bought an 8yr FT annuity for my wife with 125k (inc 25% TFC) . I used Retirement Line to buy with L&G, level, no lump sum, guarantee for full term. RL took commission of £1400. Couldn't find an IFA to take it on in time - they would have got slightly better rate but not much in it

FIREDreamer

westv said:

I see the HL annuity quote calculator seems to be broken at the moment. It only seems to be supplying L&G figures.

Other companies were probably repricing.

westv

FIREDreamer said:

westv said:

I see the HL annuity quote calculator seems to be broken at the moment. It only seems to be supplying L&G figures.

Other companies were probably repricing.

Maybe but I doubt it. It's been about 4 days now.
For me, it's not a big deal as I am just curious atm.

FIREDreamer

westv said:

FIREDreamer said:

westv said:

I see the HL annuity quote calculator seems to be broken at the moment. It only seems to be supplying L&G figures.

Other companies were probably repricing.

Maybe but I doubt it. It's been about 4 days now.
For me, it's not a big deal as I am just curious atm.

Seem to be zero again apart from L&G. Was fine yesterday so very odd.

westv

FIREDreamer said:

westv said:

FIREDreamer said:

westv said:

I see the HL annuity quote calculator seems to be broken at the moment. It only seems to be supplying L&G figures.

Other companies were probably repricing.

Maybe but I doubt it. It's been about 4 days now.
For me, it's not a big deal as I am just curious atm.

Seem to be zero again apart from L&G. Was fine yesterday so very odd.

Showing zeros for me yesterday and day befors.

FIREDreamer

@westv i am getting quotes from all providers there now.

Time4T_Accounts

Coming back to this for the sake of completeness.  I met the IFA, who very came across as very knowledgeable.  During discussions he teased out that I have potential to tip  into 40% this, with the result that I’d be better off not receiving annuity income In those circumstances.

So, it’s back to the portfolio drawing board in the short term …

FIREDreamer

Time4T_Accounts said:

Coming back to this for the sake of completeness.  I met the IFA, who very came across as very knowledgeable.  During discussions he teased out that I have potential to tip  into 40% this, with the result that I’d be better off not receiving annuity income In those circumstances.

So, it’s back to the portfolio drawing board in the short term …

Is paying 40% income tax on some of your annuity income such a bad thing? It means you’ve won the game.

EDIT: even if not working, you can still pay £3,600 pa gross back into a pension to gain extra PCLS and extract the rest at 20% tax if tax thresholds rise in the future.

I was happy buying a second annuity despite this, because it will lose 40% in inheritance tax on death post 2027 anyway.

I don’t know if there is inheritance tax due on the annuity payments made after death during the remaining guarantee period if my spouse has died as well. Or just income tax.