Internet Based IFAs??

masonj3

Hi

My mom has a personal pension plan value of 78K which has performed really well during the past couple of years. My dad is really unwell and is needing round the clock care so my mom is considering giving up work and claiming carers allowance to cover part of her wages.

She has asked for some quotations from her pension company who tend to favour prudential annuities. In all the quotations look ok but as always I guess the best option is to see an IFA as well before jumping in.

My mom cant take her pension until Oct when she turns 55 put the prob is being able to get to see an IFA because of my dads needs, she literally cannot turn her back and Im not much use to her as Im disabled also.

Do any IFAs offer an internet / online based service as this would be a much easier option for her.

Thanks x

dunstonh

She has asked for some quotations from her pension company who tend to favour prudential annuities.

A number of companies have signed up to provide prudential annuities. Its not a case of favouring them but having a commercial agreement to use them.

In all the quotations look ok but as always I guess the best option is to see an IFA as well before jumping in.

Yes. its a no brainer with pension commencement as its a no cost option and can either result in taking that annuity if best or getting a better one.

Do any IFAs offer an internet / online based service as this would be a much easier option for her.

There are some IFAs that have websites dedicated to annuity purchase. These are fine for what they do but you will not be getting 100% coverage as not all the annuity providers make their figures available online. They still require phone calls. A local IFA could still be the better option financially but you need to decide if the convenience then online is fine if you dont mind the lack of coverage and no FOS protection.

bigbloke45

I agree with DH. Also, why not try looking at financial websites? "This is Money" from the Daily Mail (yes, I know it's a rag!) is quite good as is "Motley Fool" and, of course (just to wind DH up!) h-l (Hargreaves Lansdown!)

Most importantly, you and your family need to work out your objectives before taking the pension as there is no option to change your minds at a later date.

Good Luck!

EdInvestor

www.williamburrows.co.uk
www.annuity-bureau.co.uk
www.annuitydirect.co.uk
www.h-l.co.uk

These are all IFAs offering an email.or telephone annuity service same as you will get from any local IFA.The websites have lots of useful info on them about types of annuities.

Retired_I.F.A.

"...the prob is being able to get to see an IFA because of my dads needs.."

Any local IFA will come and see you mum at home at a time she says is convienient. IFA's are not bank managers you know

EdInvestor

New annuity planner from TPAS has very detailed step by step guide to the process, including all the little known pitfalls like losing GARs and getting caught with MVRs due to retiring at the wrong time:

http://www.pensionsadvisoryservice.org.uk/#

dunstonh

These are all IFAs offering an email.or telephone annuity service same as you will get from any local IFA.

And checks made in the past have shown the "local" IFAs coming in with better figures than those website based ones. Some of those sites are execution only providers as well meaning you have to do all the work and decisions and you get no FOS protection for that. And, as I said, they only seem to quote the online providers. Not any of the companies that require you to get manual quotes. Three of the last five annuity purchases I have put through have had higher rates allocated than the published rate because of a bit of haggling and playing providers against each other or a provider that required a manual rate to be obtained.

At the end of the day it's your choice but remember that online doesnt mean best all the time and in the case of open market option it certainly isnt the best option financially. Personally, I am not even sure its convenient either. The paperwork many companies issue for open market options can be quite complicated. Plus there will also need to be passport/birth certificate provided if you do it online (whereas the local adviser can photocopy and certify) and you need to be aware of options like with or without proportion, increasing vs level, value protect/buy back, joint vs single life etc and possibly income drawdown potentially. You wont get any of that online.

jamesd

masonj3, if you visit unbiased.co.uk you can find local IFAs there. Given the circumstances it should be no problem to find one who is willing to visit to discuss the options.

Your mother should also consider her own health including weight and possible smoking since less than perfect health can increase the annuity payments available, due to lowered life expectancy.

The annuity offered by the company where the pension money is invested usually won't be the highest one and since the annuity commission will pay for the IFA it's worth getting an IFA to find the best possible deal.

Given your mother's age she should ensure that at least a large portion of the money is used to buy an annuity that pays more each year to grow with inflation. That will mean getting a lower initial monthly payment but it'll avoid gradually growing more and more poor as she gets older.

Retired_I.F.A.

Buying an annuity imo is a mistake, buying one which escalates in payment is a bigger one still.

Look into drawdown instead.

EdInvestor

dunstonh wrote: »

Some of those sites are execution only providers as well meaning you have to do all the work and decisions and you get no FOS protection for that.

That is not correct.They are all online IFAs who will search the market for the best rate and also look at ill health annuities etc.

There is actually no such thing as an execution-only annuity service, more's the pity.It's a big gap in the market. I have heard that https://www.cavendishonline.co.uk will process an annuity for you on an E/O basis, but they will not search the market for the best one, you have to do it yourself, and the market is not transparent.This is the best we have, and it's a start for comparing rates:

https://www.fsa.gov.uk/tables

I see the Mail on Sunday is starting a campaign about the disgraceful state of the annuity market, very good, it's well overdue.

dunstonh

That is not correct.They are all online IFAs who will search the market for the best rate and also look at ill health annuities etc.

They offer advice services but they tend to be quite expensive. William Burrows for example is fee based and fee basis on annuities can take a long time to recover the fee (a £500 fee may increase the annuity income by £20 a year but take 25 years to recover that fee compared to the commission option).

There is actually no such thing as an execution-only annuity service

Of course there is.

This is the best we have, and it's a start for comparing rates:

www.fsa.gov.uk/tables

The problem, as has been stated all the other times you have posted a link to the FSA tables, is that the data makes assumptions on standard terms and the rates are not updated as often as happens in real life. The tables are a guide but not a reliable one to make a final decision.

The internet has a lot of advantages but I dont see why you are so negative towards using a local service provider when there is no cost reason for using the internet.