Fixed Term Annuity purchase pot holes!

zagfles

An annuity broker might get you a better deal than going direct or using an IFA, see this thread, it seems £800 commission for a £100k annuity is a good target to aim for and that'll likely be far cheaper than any IFA:
Do you need an IFA to purchase an annuity? - Page 2 — MoneySavingExpert Forum

Nick9967

Just thought I'd update on my thread for those with any interest, just had quotes back from Canada Life directly on my fixed term annuity , they will deal with me it seams - the quote as a matter of interest for 2 terms , same pot amount, was within a spit of Moneyhelper's quotes for the same thing , actually CL was just under 0.1% less per year, quotes valid for 45 days , must apply formally with 14 days, but it gives me confidence that that route is viable should I choose. once I get quotes from the brokers, Retirement Line etc I'll let you know! thanks all

DRS1

and did they mention commission?

hotncold47

This commission thing keeps being mentioned. Isn't the most important figure the annual payment figure for exactly the same pot amounts/requirements?

QrizB

hotncold47 said:

This commission thing keeps being mentioned. Isn't the most important figure the annual payment figure for exactly the same pot amounts/requirements?

Yes.

If route "A" gets you £8k pa for your pot with a £500 commission, and route "B" gets you £9k pa with a £5000 commission, route "B" is still the better choice.

DRS1

hotncold47 said:

This commission thing keeps being mentioned. Isn't the most important figure the annual payment figure for exactly the same pot amounts/requirements?

Yes of course.

But it would still be interesting to know what commission/commission rate he got from the direct quote.  And then to know how that compares to the rates if the OP goes via a broker/IFA.  If eg Retirement Line use the same commission rate as a direct quote then that would be interesting information especially in light of @dunstonh's post that IFAs/brokers can set their own commission rate.

Nick9967

Actually the paperwork does not mention anything to do with commission, it simply gives the amount being used to buy the annuity , number of years, annual and monthly payments and the fact that it will be paid for the term regardless of what happens to me,  I’m sure a brokers will so when I get the quotes from brokers I’ll find this post and add them , if like me it’s now my target it well maybe interesting to someone, I might try the other large insurers direct now see what happens!