Annity Forecasting Website help

londoner62

Hi,

With 117 weekends to go before I'm 67 (which is when I want to collect my DC's) , all my ducks are pretty much in a row but I would appreciate a pointer or two to websites similar to 'annuityready' that enable me to find quotes that do not entail a call back from agents who I am sure only have my welfare at heart!

I would ideally like to make my own comparisons at this stage

Many thanks to those who can offer a suggestion to widen my scope from 1 website.

DRS1

Well I got online annuity quotes from Moneyhelper and HL without any one phoning me up. But they are giving you current quotes not quotes for two years in the future.

Annuity Quote | Hargreaves Lansdown

Buy an annuity for a guaranteed pension income | MoneyHelper

londoner62

https://forums.moneysavingexpert.com/discussion/comment/82171711#Comment_82171711

Thanks @DRS1 I do get the inability to offer two years ahead, but I am just trying to work out a couple of things;

• How much my pot will buy me.
• What companies offer annuities..
• Whether or not to go straight or via a broker…
• probably a couple of others thing too!

After plugging my numbers into the two site you mention and annuityready, I see minimal difference and the same companies but I have determined I will be better off by taking my monthly annuity in arrears rather than in advance.

Again, thanks.

DRS1

There is only a handful of companies offering lifetime annuities (and even fewer offering fixed term annuities) . From memory Aviva, Canada Life, Just, Legal & General, Scottish Widows and Standard Life.

I found it near impossible to go direct. The only way I could do it was by using the company which held the pension. I used a broker - Retirement Line. I did not mention them before because they will call you up if you do an online enquiry with them.

People on here will tell you that using an IFA can be better than using a broker. That assumes you can find one. The thing is if you go direct or via a broker you will get a rate that includes commission (as paid to the broker - yes even if you don't actually use a broker) but if you go to an IFA and pay a fee then the IFA should be able to access commission free annuity rates. Whether that is in fact better depends on the fee vs the commission you would otherwise have paid (though of course the commission comes out of the pension pot while the fee comes out of your pocket).

dunstonh

Whether that is in fact better depends on the fee vs the commission you would otherwise have paid (though of course the commission comes out of the pension pot while the fee comes out of your pocket).

With an IFA, the fee comes out of your pension pot (the 75% element, not the the TFC). With the annuity broker, the commission is factored into the annuity rate which is lower than the rate that the IFA will have. As you mentioned, a commission rate vs a non-commission rate.

If the fee and the commission are the same then broadly speaking the outcome should be the same. e.g. 4x5 vs 5x4. However, when I have previously calculated the different ways to collect the same amount of money, the fee option has beaten the commission option. Albeit be a very tiny difference.

On a small fund, you would expect an annuity broker to be cheaper. On a larger fund, an IFA can be cheaper, as many IFAs have capped fees or tiered fee structures that taper/cap the fee, whereas the commission sites are often open-ended on the percentage. Although some recent posts suggested that some of the commission-based brokers have started tiering or capping their commission as well.

RogerPensionGuy

For information.

I just did my 1st annuity after much procrastination as I was temped to just let the DC cook and didn't/don't need the income for my lifestyle, I was about 63/64 years old.

My view was let the DC pot cook slowly in money market units(I got outa equities tail end of 2025 trying to avoid a horrible sequence crashing for my wants)

I was happy letting the STMMFs roll up the pot and my age also rolling helping any annuity I purchased.

All the above felt okay with me and was tempted to wait a few years letting it roll up, however I was also aware annuities are currently in a pretty high zone and done lots of research on my fagg packets and my concern was annuity rates roll down.

I worked out with my age and STMMFs working for a better annuity, if annuity rates rolled down, the result could be negative overall for me, so I finally did my 1st annuity spring this year as the offering was very nice.

For information I keep using moneyhelper with my exact details and the offerings are 99.90% the same as spring this year.

I understand the STMMFs would of increased the DC pot and my life expectancy is less just four months later.

*******

I played with the AI outlets asking exactly the above and it tended to agree if annuity rates rolled down at possible speeds and age/STMMFs pushing up, it was very possibly my actual output from an annuity could reduce.

So I picked the bird in the hand now trying to avoid possible sequence risk, the inbound net cash from the annuity just drops in an ISA or gilts(low coupon) currently.

I keep looking on moneyhelper as I found it very accurate indeed(no health issues) and if I see it roll up enough then maybe I'll do my 2nd & last annuity, however my current plan is to leave my remaining DC pot for now and see how I feel as time goes by, maybe a slow 2% drawdown rate is another option keeping that DC value as very long term nest egg.

***********

Just another thought in my head, after months and months of checking moneyhelper and others, a Brooker popped up offering about 0.3% initial better return on an annuity with the same insurance company that 95% came up as best offerings, so I grabbed it ASAP.

*********

I hope my information is interesting to some people.

Cheers Roger.

DT2001

https://forums.moneysavingexpert.com/discussion/comment/82171984#Comment_82171984

Can I ask for your definition of a larger fund as my brother is just gathering together his various pension pots in one place before looking at annuities?

eastcorkram

https://forums.moneysavingexpert.com/discussion/comment/82172408#Comment_82172408

How long did it take, from applying for the annuity, to getting the first payment?

zagfles

Be aware that you can negotiate discounts with annuity brokers eg see this thread: Do you need an IFA to purchase an annuity? - Page 2 — MoneySavingExpert Forum

£800 commission for a £100k annuity is almost certainly far less than an IFA would charge. So using a broker and doing a bit of haggling is likely to get a better result than using an IFA whatever the size of your pot as the IFA would likely be required to do more work ie investigate whether the annuity/what type is suitable for you etc.

kempiejon

https://forums.moneysavingexpert.com/discussion/comment/82171711#Comment_82171711

I looked at those 2 and https://annuitycalculator.lv.com/ supplying a phone number is optional

I'm gearing up for an inevitable retirement line chat as I want to make a decision in the new tax year.

RogerPensionGuy

https://forums.moneysavingexpert.com/discussion/comment/82172604#Comment_82172604

To recap, when that Brooker offered me the best deal/value, I accepted it and did the compliance interview 2 days later I the Brooker & me expedited ever email.

I asked my DC SIPP platform to expedite and they did.

The quote was only valid for 30 days IIRC, I got a requote after 25ish days to hopefully extend it to 55 days.

The 2nd quote was just a few pennies behind the original quote, but obviously secured another 30 days.

About 44 days after the original offer the annuity insurance company confirmed receipt of the funds and luckily for me they did another requote per their rules and they use quote 2 or the requote if better, requote was a few hundred pounds more PA than quotes 1 & 2.

So about 44 days was that period and payments are actually locked in on the day the insurance company gets the funds.

Three weeks later was my first payment(monthly in arrears) so about 63 days in total.

However 44 days it took to fully secure the deal.

To note when my DC SIPP platform received the request for funds, they sold sufficient STMMFs and just 3 days later the insurance company had the funds.

I was/am very happy with this annuity purchase, maybe annuity rates will roll up a bit more, but I felt it was a sensible time in my head to lock in the rate I got.

For information I picked single life 100% VP as I'm sure I would feel bad if my health slopes off quickly and saw/knew the way it panned out.

I looked at the various guarantee periods and just felt not for me.

Altho I'm not bothered about me leaving a big or bigger legacy to anyone, the DC SIPP IHT changes arriving in 2027 certainly made me feel buying an annuity nowish was a fair bet.

Cheers Roger.