UKC

Is it legal to arrange an Annuity without using an IFA

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 Batcloud 04 Dec 2013
I'm happy to pay for advice but their fees for arranging (particularly a draw-down pension) are significant.

The fee for a straightforward annuity is much less (and not ongoing) but my IFA recommends a Draw-down pension!

So, with a simple Annuity is it possible to just shop around for the best offer and deal directly with the pension provider.

Thanks
altirando 04 Dec 2013
In reply to Batcloud: I did. And I would be very doubtful about a drawdown version unless you expect to be seriously short of income otherwise - it will reduce your annuity. But the rates are very poor now. There must be some form of comparison website. Just to make you weep, I did get a guaranteed 14% at one time, should have packed more money into it!

 Flinticus 05 Dec 2013
In reply to Batcloud:

Ok. I work in this field. Drawdown is quite different to an annuity. Why such a disconnect between what was advised to you and what seems your preference, an annuity? What are your priorities, attitude to risk, income need, pension fund value, health etc You need to consider all this and more in deciding what is best.
OP Batcloud 05 Dec 2013
In reply to Flinticus:

Indeed, there is a lot to consider. My concern about the 'advised' Drawdown is the 3% setup charge (for the IFA) and the ongoing 0.5 - 1% annual review charges, that seems like a lot of charges compared to a 1 off 1% charge for a simple annuity.

And, if I choose an annuity, can I arrange it directly to avoid paying 1% of my entire (such as it is) pension fund?
OP Batcloud 05 Dec 2013
In reply to altirando:

14%!! Yes, that makes me weep. As the rates are so low I'm tempted by a drawdown in the hope that the rates will improve but I'll then be hit by the increased IFA charges.
m0unt41n 05 Dec 2013
In reply to Batcloud:

There is also the issue of what happens on your death, since the possibilities with drawdowns are different to those of annuities.
I sympathise with your position since I have a deep distrust of IFAs and always wonder how self serving their advice is.

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