Your options when purchasing an annuity
Have you checked annuity rates recently? If not, do so as they can change frequently and annuity quotes only tend to be valid for 14 days after the last rate change.
If you have suffered ill health and require annuity quotes then you should complete and return the Common Quotation Form, this form is designed to be used with all enhanced annuity providers and ensures a level playing field when comparing annuity rates. Enhanced annuity quotes are not readily available without medical information and they are beyond the scope of our online quotation service.
Ready to buy an annuity? For all annuities (we exclude drawdown in this term), your options are as follows;
Option 1: No Advice
This option is available for annuities of any purchase price. No advice is given, so you need to be sure about the options that you have chosen (advice is regulated and offers valuable consumer protection, you will lose this when using any execution only service). We charge £250 regardless of the annuity purchase price, this service is only available for annuities and excludes drawdown contracts where we believe you should seek advice. Commence Execution Only Service
Option2: Buy Direct
The annuity provider will typically charge 1%-2% of the purchase price, this will reduce the annuity rate that you can purchase. An annuity provider will not offer information about other annuity provider’s products and they will not give advice that is regulated by the FSA; it costs more and there is no advice, better to go through a financial adviser, see option 3. If the funds available for annuity purchase are somewhat greater than £25,000 or the annuity adviser charges more than £250 or 1% of the purchase price then option 1 may be better but remember that no advice will be provided.
Option 3: Advice to cover all options and choices
Speak to an Independent Financial Adviser (IFA), they can advise on the options available and consider alternatives like fixed term annuities, asset backed annuities and income drawdown. The cost of their advice is likely to be in the region of 1% of the fund value for annuity purchases but could be somewhat higher for drawdown advice. With advice comes assurance since it is regulated by the Financial Services Authority. We can put you in touch with an annuity specialist, just complete this form.