Safeguarded Benefits - Single Fee Advice
Discussion
A relative has a legacy insurance product with Aegon. Essentially it’s an annuity linked to the value of an underlying investment portfolio.
The annuity pays 9% non inflation linked based on the value of the underlying portfolio at call, and as such my relative would like to cash out the underlying value and have it invested.
The size of the investment portfolio is about £150,000, but this makes up a small part of theirs and their partners total pension pot (which includes a considerable defined benefit scheme that is index linked).
All they want to do is cash out the annuity, which the provider (Aegon) can do, but they need the safeguarded benefits form signed off by an IFA.
Every single one they have spoken to wants to take a “holistic” view of their finances and charge a % fee on total assets. This is nonsensical, uneconomical and not wanted - we just want to pay for advice on this set aspect of their finances.
Ironically, the holder of this product used to be an IFA themselves.
Anyone know of an IFA/outfit that can supply this advice for a set fee (and essentially get the form filled in)?
Thanks,
The annuity pays 9% non inflation linked based on the value of the underlying portfolio at call, and as such my relative would like to cash out the underlying value and have it invested.
The size of the investment portfolio is about £150,000, but this makes up a small part of theirs and their partners total pension pot (which includes a considerable defined benefit scheme that is index linked).
All they want to do is cash out the annuity, which the provider (Aegon) can do, but they need the safeguarded benefits form signed off by an IFA.
Every single one they have spoken to wants to take a “holistic” view of their finances and charge a % fee on total assets. This is nonsensical, uneconomical and not wanted - we just want to pay for advice on this set aspect of their finances.
Ironically, the holder of this product used to be an IFA themselves.
Anyone know of an IFA/outfit that can supply this advice for a set fee (and essentially get the form filled in)?
Thanks,
james_zy said:
A relative has a legacy insurance product with Aegon. Essentially it’s an annuity linked to the value of an underlying investment portfolio.
The annuity pays 9% non inflation linked based on the value of the underlying portfolio at call, and as such my relative would like to cash out the underlying value and have it invested.
The size of the investment portfolio is about £150,000, but this makes up a small part of theirs and their partners total pension pot (which includes a considerable defined benefit scheme that is index linked).
All they want to do is cash out the annuity, which the provider (Aegon) can do, but they need the safeguarded benefits form signed off by an IFA.
Every single one they have spoken to wants to take a “holistic” view of their finances and charge a % fee on total assets. This is nonsensical, uneconomical and not wanted - we just want to pay for advice on this set aspect of their finances.
Ironically, the holder of this product used to be an IFA themselves.
Anyone know of an IFA/outfit that can supply this advice for a set fee (and essentially get the form filled in)?
Thanks,
Have they tried Unbiased?The annuity pays 9% non inflation linked based on the value of the underlying portfolio at call, and as such my relative would like to cash out the underlying value and have it invested.
The size of the investment portfolio is about £150,000, but this makes up a small part of theirs and their partners total pension pot (which includes a considerable defined benefit scheme that is index linked).
All they want to do is cash out the annuity, which the provider (Aegon) can do, but they need the safeguarded benefits form signed off by an IFA.
Every single one they have spoken to wants to take a “holistic” view of their finances and charge a % fee on total assets. This is nonsensical, uneconomical and not wanted - we just want to pay for advice on this set aspect of their finances.
Ironically, the holder of this product used to be an IFA themselves.
Anyone know of an IFA/outfit that can supply this advice for a set fee (and essentially get the form filled in)?
Thanks,
https://www.unbiased.co.uk/
If not, be very clear/explicit in the message about exactly what you are looking for and hopefully, you'll find someone to help.
Hargreaves Lansdown will provide one off advice for a 2% fee based only on the pension in question. Ongoing advice is available but not a necessity.
With safeguarded benefits it's not quite as simple as 'signing the form' as the advice could be not to give up the guarantee. Comes down to key factors like objectives and capacity for risk. For example, even if they don't need the security of income does it make financial sense to take the 9% income and do something with it.
With safeguarded benefits it's not quite as simple as 'signing the form' as the advice could be not to give up the guarantee. Comes down to key factors like objectives and capacity for risk. For example, even if they don't need the security of income does it make financial sense to take the 9% income and do something with it.
PistonHead007 said:
Hargreaves Lansdown will provide one off advice for a 2% fee based only on the pension in question. Ongoing advice is available but not a necessity.
With safeguarded benefits it's not quite as simple as 'signing the form' as the advice could be not to give up the guarantee. Comes down to key factors like objectives and capacity for risk. For example, even if they don't need the security of income does it make financial sense to take the 9% income and do something with it.
Thanks, that is helpful. With safeguarded benefits it's not quite as simple as 'signing the form' as the advice could be not to give up the guarantee. Comes down to key factors like objectives and capacity for risk. For example, even if they don't need the security of income does it make financial sense to take the 9% income and do something with it.
Contacted HL, but they said the 2% figure was wrong and that I needed another £1500 + VAT and needed to be transferred to HL SIPP. Does this sound right?
james_zy said:
Thanks, that is helpful.
Contacted HL, but they said the 2% figure was wrong and that I needed another £1500 + VAT and needed to be transferred to HL SIPP. Does this sound right?
No. It's £1,250+VAT and that's only on top if the pension has GMP in it or is a final salary/career average scheme. As long as it's just a guaranteed annuity amount/rate then it's 2%. The 2% fee is subject to VAT if the advice is not to transfer though.Contacted HL, but they said the 2% figure was wrong and that I needed another £1500 + VAT and needed to be transferred to HL SIPP. Does this sound right?
HL are restricted advisers but they aren't solely limited to the HL SIPP. They can consider any existing pensions as a receiving scheme or a few others on panel.
You might have better info if you ask to speak to an actual adviser, the next step after helpdesk.
james_zy said:
Thanks for this - they put me through to an adviser, whose feedback was 2% plus the £1500 + VAT figure
What's the name of the person you spoke to? My guess is you went from the general helpdesk to someone who fields advice enquiries. Only after that do you get to speak to the adviser.
If you call back, say you potentially haven't been given accurate information and can they put you in touch with one of the actual advisers.
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