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Post RDR Anniuty costs.
william morris
Posted: 24 November 2012 10:53:48(UTC)
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Hi,
I am rapidly approaching the cliff edge of austerity ( I retire in May 2013!! ) .My pension situation is as follows:

NPI . PPP- Unitised With Profit. Approx. value £50,000 ( all contribuations made as contracted out by DSS.)

Clerical Medical. - Stakeholder PPP. Approx value £75,000.

I intend taking my 25% cash entitlement, and using the OMO .My questions are as follows.

Is it best to lump the 2 pots together ,or treat them separatley.?

What sought of costs should I reasonably expect to incur by using an annuity broker, post RDR.?

































0
Roydo
Posted: 24 November 2012 11:00:36(UTC)
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Hi, lump them together, if you are buying an annuity. Consider buying one prior to the EU gender directive. Make sure you complete a lifestyle/underwriting form. 1% of the net purchase price is about right, IMO. (How this is paid is between you and your adviser).

R
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william morris on 24/11/2012(UTC)
william morris
Posted: 24 November 2012 11:10:10(UTC)
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Many thanks Roydo,

I have looked at buying prior to EU gender directive , unfortunatley the NPI plan has an MVR of about £14,000 for early encashment !!
Roydo
Posted: 25 November 2012 09:44:09(UTC)
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I would double check that MVA; sometimes they do not apply if you are buying an annuity.
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william morris on 25/11/2012(UTC)
william morris
Posted: 25 November 2012 10:09:22(UTC)
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Thanks again Roydo,

The enquiry to NPI was made on my behalf by a company called ' My Retirement Expert'.Do you know anything about them?.
Roydo
Posted: 25 November 2012 10:19:02(UTC)
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Never heard of them, but that does not mean they are not any good! Web based I assume?
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william morris on 25/11/2012(UTC)
william morris
Posted: 25 November 2012 10:33:19(UTC)
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Sorry Roydo! That should have read ' My Pension Expert'. And yes they are web based.
Roydo
Posted: 25 November 2012 11:08:13(UTC)
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Come across them a few times, and they seem to be pretty good. Seem to recall that they actually offer advice, as opposed to an execution only service, which I always prefer, unless you are super confident of knowing all the ins and outs.
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william morris on 25/11/2012(UTC)
DGL
Posted: 27 November 2012 17:27:19(UTC)
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Good Luck ! I went through this earlier this year - did my own research - just to spite my IFA !
I found Aviva offered best rates.... which were about 5.0% for flat annuity and c, 3.3% for RPI linked....(I am 65) no gtee, no widow's pension.... I think annuity rates have worsened a tad...since then.
william morris
Posted: 27 November 2012 18:11:34(UTC)
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Thanks for your post DGL,

I think you are right about the annuity rate. Luckily enough I will have other retirement income to supplement the pension, but still find it dissapointing !

WM.
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