Moving pension pots for the best annuity

incus432

DRS1 said:

On timing don't underestimate how long it might take you to find an IFA who will do this for you.  There have been threads on here about how tricky that is and how long it can take.  Finding a broker (like HL or RL) would be quicker but may not get you the best deal.  Although RL does have a we won't be beaten type page - I think it is a gift voucher if you find a better like for quote.  I never put that to the test.

Just to add on this 

1. IFAs. I approached 10 IFAs in dec 2024 and only one was willing to purchase a lifetime joint annuity on 'execution only' basis and he quoted 1% fee. For various reasons I shelved it for 12 months then went back to him confirming the same basis as before.. However after Retirement Line got back to me at the point of submission they beat his quotes by a significant margin even after taking their commission. The IFA and I went to and fro checking both had the same medical info, and I then discovered he was approaching the insurers on an 'advised' basis. apparently having misunderstood or forgotten what I asked for.   He felt he could not then change the basis to non advised so RL was the better bet. I suspect RL reduced their commission a lot to try to win the business.  

I think their 'we wont be beaten guarantee' depends on having both quotes within the same (narrow) time window. 

2. Medical info - this is complex but important and I found it very useful to fill in the detailed forms on Money Helper. Dig out all your old cholesterol and BP readings, any conditions that may have been diagnosed even if they haven't caused a problem or recurred. It is easy to forget things and difficuklt to be sure inb a phone conversation. I hadn't thought this would matter but various conditions (spinal surgery, OSA) did give a significant uplift.  

3. Delays. Both the IFA and RL were extremely prompt and efficient. However trying to find out what was happening at L&G was impossible

After all this in the end I abandoned the annuityy application and built a 20 year gilt ladder, I also made an ex-gratia payment to the IFA in recognition of his work (and unasked for advice!) and possible future relationship 

dunstonh

The IFA and I went to and fro checking both had the same medical info, and I then discovered he was approaching the insurers on an 'advised' basis.

In my experience of doing execution only annuities, if I request quotes on fee or commission basis for the same monetary amount, the fee option comes in fractionally cheaper.  Switching the option from advised to non-advised didn't change the figures.  It was the change from commission to fee that did.

2. Medical info - this is complex but important and I found it very useful to fill in the detailed forms on Money Helper. Dig out all your old cholesterol and BP readings, any conditions that may have been diagnosed even if they haven't caused a problem or recurred. It is easy to forget things and difficuklt to be sure inb a phone conversation. I hadn't thought this would matter but various conditions (spinal surgery, OSA) did give a significant uplift.  

If you have health issues it is vital to complete as detailed as possible.    If you have more severe issues then going for manual underwriting can be the best option but for simple issues, the electronic method would be fine.    Often minor issues that would have little influence on the terms by themselves can stack together and multiply the uplift if you have more of them.

3. Delays. Both the IFA and RL were extremely prompt and efficient. However trying to find out what was happening at L&G was impossible

L&G have introduced a new application process that is much improved but you are still in the dark for most of the period.  They do keep the IFA/broker in the loop more now but the notifications are often a bit behind.  For example, on the last one I did they emailed to say that they had sent the request to the provider.  However, the existing provider had already messaged me days earlier to say that they had the request and had sent the money to L&G.   It took around 15 days longer for L&G to acknowledge that.  Although they always back date to when they get it.  So, its not a big deal.