Purchasing an Annuity

af1963

RetirementLine will probably phone you though. They phoned me.

I usually don't like that either, but in this case they did get a slightly better deal ( lower commission) than H-L.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/82139285#Comment_82139285

IFAs are not allowed to receive a commission. An IFA will use the nil-commission annuity rate which will be higher than the commission annuity rate. (however, if the fee equals the commission, the outcome is broadly similar. ie 10x9 vs 9x10).

I'm not sure whether it's commission or a fee. I am looking for a lifetime annuity

LV don't do a lifetime annuity.

JJforever

With regards HL, are their quotes up-to-date? The reason I ask is that I have run a quote, with the same information, for the last 3 days on their website and it has come up to the same amount? If you selected 'Apply' would they 'guarantee' that quote? The bond yields have been very volatile this week so I am a bit confused as to how they work out their quotes.

Has anyone taken out an annuity via them? If you 'Apply' could they turn around and say 'Sorry that quote is no longer available / valid'?

Thanks in advance

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82140293#Comment_82140293

When you ran those quotes did you just look at the top quote or at all the five or so quotes - and did all five quotes return the same figures on the three days?

I have not used HL for an annuity so can't answer your question. But when you get an annuity quote following a proper application you will find that it has a limited life (30 days or so - the guaranteed period). The quote is good for that guaranteed period as long as you finish the process within that time.* The chances are you won't do that (I think they say it can take 8 weeks - mine took a lot longer) so a broker like HL will probably get a second quote at some stage to extend the guaranteed period (and you hope it is better than the first quote).

*By finish the process I mean you must have transferred the funds from the pension to the annuity provider within the guaranteed period. Just sending in the application form for the annuity is not enough.

dunstonh

With regards HL, are their quotes up-to-date? The reason I ask is that I have run a quote, with the same information, for the last 3 days on their website and it has come up to the same amount? If you selected 'Apply' would they 'guarantee' that quote? The bond yields have been very volatile this week so I am a bit confused as to how they work out their quotes.

You're seeing a limitation of the online quote portals. They won't call the annuity provider or its sales support teams to request the latest quotes. They will use the electronic data, which is not updated in real time.

If the illustration was generated for that specific quote, it will be guaranteed for the period stated on the illustration.

Has anyone taken out an annuity via them? If you 'Apply' could they turn around and say 'Sorry that quote is no longer available / valid'?

I haven't used the HL system, obviously. If it's like the other systems and you only have the top-level comparison quote, that figure is not guaranteed. If you've obtained the provider illustration, it includes the guarantee stated on it.

Fermion

https://forums.moneysavingexpert.com/discussion/comment/82140293#Comment_82140293

We purchased 2 Annuities about 11 months ago via HL. All very smooth. We both went for L&G. (Joint Life fixed with a 5 year guarantee). The rates they quote are guaranteed although as the providers only change rates about every 3-4 weeks HL will run these through the Annuity provider to see if they can improve (which they did in both of our cases).

We both got a very annuity rate (about 8.6%) although we are older (77 & 72). The whole process was very slick however it may have helped that our SIPPs we both fully crystalised in Drawdown with HL and the we had already converted the required amounts to cash

Greylocks

I found this company have the best annuity rates when compared to Retirement Line and Hargreaves Lansdown. They had the lowest commission as well.

https://blackstonemoregate.com

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/82143636#Comment_82143636

They are an advice firm. Advisers are banned from receiving commission. Adviser rates are often better then the online sites (but not always - broadly speaking, the larger the fund, the more likely an advice firm would be better than a non-advised broker. Also, with health conditions, I have been told by a major annuity provider that advised cases give better health details on average than non-advised)

FatherAbraham

https://forums.moneysavingexpert.com/discussion/comment/82143339#Comment_82143339

Older people get actuarily worse rates, not better ones (I know the raw quote looks higher, but one receives the payments for a shorter time), because of increasing mortality drag.

The best time to buy an annuity, actuarily speaking, would be at birth.

ali_bear

That's just one of the many reasons not to listen to actuaries