Purchased life annuity - can you recommend a broker

dunstonh

 I just don't understand why it's considered to be a rare niche product since I have seen a number of recommendations online that it's a good idea to use the 25% tax-free lump sum from a pension pot to buy a PLA.

That is an exam answer rather than a real-life answer.

Unless you've got a guaranteed annuity rate, then you shouldn't use 100% of the pension fund to buy a lifetime annuity. You should use the 75% for the lifetime annuity and the 25% for PLA.

However, there are only two PLA providers, and only one of them is relatively competitive. Its application process is extremely dated. Largely because there isn't the volume of policies put in place to justify the cost to modernise it.

The online annuity calculators (and brokers) all seem to be focussed on standard pension annuities and don't even mention PLAs.

The online brokers cherry pick the easy stuff. They're not interested in doing stuff that requires manual applications.

poolboy

I m pretty sure pla s were discussed on meaningful money podcast last year. I think it was to fund care fees though I was only half listening so may be wrong.

I bought an annuity last year but from a pension pot with a generous min rate, I did shop around but noone came close.