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    • By RADDERS 7th Jun 17, 7:59 PM
    • 204Posts
    • 224Thanks
    MetLife being recommended by IFA
    • #1
    • 7th Jun 17, 7:59 PM
    MetLife being recommended by IFA 7th Jun 17 at 7:59 PM
    Quick background, hubby has retired with a DB pension that we are managing our day to day living expenses with and I finished work with a deferred DB pension.
    I am 54 and have no intention of further work as have enough savings to draw down for any large expenses and will get my state pension at 67.
    I have been to see an IFA who has recommended the MetLife Guaranteed Income to transfer my pension to (approx £200 K) I have a very cautious attitude to risk and I understand why she has done this. If I understand it correctly as long as I do not touch the pension (which at the present time we have no need to) the capital grows at a minimum of 3% per annum and there is a daily lockout on this product. The IFA charges an initial 1.5% charge and an annual charge of 0.5% going forward and there is a charge from MetLife but I have forgotten what it was but was under 1%.

    I have googled and looked at this forum for reviews on this company but they are all a few years ago and not that flattering and I was wondering if there has been any changes to people's thoughts.
    Thanks for any advice that anyone can offer.
Page 3
    • Linton
    • By Linton 10th Jun 17, 3:46 PM
    • 9,333 Posts
    • 9,460 Thanks
    You don't have to put everything into a single product. Why not put half in some laddered savings accounts where you'll get 2% interest. That will guarantee your principal and get you some growth. The rest could go into a conservative lifestrategy fund that will fluctuate, but you can reinvest all the income so even with a bond fund heavy portfolio you'll work through interest rate increases.
    Originally posted by bostonerimus
    High Interest SIPP deposit accounts are rare, and only seem to be provided by non mainstream banks. Whether they are accessible from the normal online brokerage SIPPs I dont know, but I would doubt it. A quick check suggests for example that H-L used to but dont now.
    Last edited by Linton; 10-06-2017 at 4:02 PM.
    • By RADDERS 19th Jun 17, 2:28 PM
    • 204 Posts
    • 224 Thanks
    Wel I have had a further meeting with the IFA today, and I think that we are leaning towards the Prudential with a cautious fund.
    I just wasn't comfortable with MetLife as I had never heard of them, so I am quite happy now.

    IFA is going to apply for a new CETV as the one I had ran out as the trustees took that long to forward it to me and also I have dithered with my decision.
    I will keep you updated how I get on.
    Thanks to everyone for their opinions.
    • bostonerimus
    • By bostonerimus 19th Jun 17, 3:22 PM
    • 1,690 Posts
    • 1,089 Thanks
    Wel I have had a further meeting with the IFA today, and I think that we are leaning towards the Prudential with a cautious fund.
    I just wasn't comfortable with MetLife as I had never heard of them, so I am quite happy now.
    Originally posted by RADDERS
    FYI MetLife is an enormous US insurer and has been in the UK market for quite a while. I have my long term care insurance with them. I don't mind buying straight insurance from an insurance company, but would only consider using an insurance company for pension income for an annuity to guarantee a base of income. I have 95% of my drawdown pot with Vanguard to keep costs to a minimum.
    Last edited by bostonerimus; 19-06-2017 at 3:28 PM.
    Misanthrope in search of similar for mutual loathing
    • Malthusian
    • By Malthusian 20th Jun 17, 9:51 AM
    • 3,921 Posts
    • 6,127 Thanks
    A tangent but:

    "The pro’s trick to turn your savings into a reliable, low-risk income" - a ten year plus strategy invested entirely in cash which at the time delivered returns of 2.79%pa - and now more like 2.25%. I assume this is "pro" in the sense that Titus Bramble is a pro footballer.

    The article is from August 2015 and includes this gem: "Markets are still waiting for the Bank of England to start increasing rates but there are signs it could happen within months. That will push savings rates higher. The best cash rates are already climbing, albeit slowly, as "challenger" banks compete to establish themselves." To save you checking Moneyfacts, if you'd done this you would now be looking at returns in the region of 2.25% per annum rather than 2.75%.

    Now, obviously I can't blame the Telegraph for not having a crystal ball, and pretty much everyone will have said something along the lines of "interest rates are bound to go up eventually" in every single year since 2009. But if you can read this article in 2017 and still not see the risks in putting money which is to be held for 5-10 years in cash then so be it.
    • HappyHarry
    • By HappyHarry 6th Jul 17, 5:17 PM
    • 572 Posts
    • 844 Thanks
    OP, if this isn't too late, you should be aware that MetLife have today confirmed they are withdrawing their guaranteed products from the UK market.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
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