Finding an IFA

[oblio]

Hi

How do I go about finding an IFA? Can unbiased.co.uk be trusted?

The scenario is that my wife has a small private pension pot (c.£30k) which we want to move from the current place it is in in order to take a 25% tax free lump sum out of and put the rest into getting an enhanced annuity (my wife is 55 and has MS).

I just need some advice on where the best place is to go to is, so that we can get this moved.

ta

[Derek Chevalier]

oblio said:

Hi

How do I go about finding an IFA? Can unbiased.co.uk be trusted?

The scenario is that my wife has a small private pension pot (c.£30k) which we want to move from the current place it is in in order to take a 25% tax free lump sum out of and put the rest into getting an enhanced annuity (my wife is 55 and has MS).

I just need some advice on where the best place is to go to is, so that we can get this moved.

ta

I use Unbiased so can give a few pointers

You have 2 main ways of using it.
1. Allow Unbiased to match you to an adviser (Concierge). This sends out the request to approximately 3-4 advisers and the "fastest finger" wins.
2. You choose one or more advisers from the list and send a direct message - this enables you to choose the ones that you feel might be a good fit.

Irrespective of which route you go down, ensure that you put a clear description (as you have done above) on what you are looking for. Too many potential clients are vague in their description and it ends up with both parties realising it's not a good fit and being frustrated.

Unbiased should contain only IFAs, although I've noticed that this has crept in there which I have queried

https://www.unbiased.co.uk/profile/financial-advis...

Any questions please shout.

[JulianPH]

Firstly, I am sorry to hear about your wife's condition. It must be very difficult for you both.

I'd just add to the above that you may find it difficult to find an adviser who is prepared to work on a £30k pension pot.

Another issue is that if you did, the cost of the advice is likely to outweigh any benefits.

One other thing to mention is that for such a simple procedure, do you really need financial advice? Maybe you do, but there are many here who can help you to do this yourself quite easily (and therefore save paying advice fees).

Good luck in whatever you decide to do.

[oblio]

Thanks both - we appreciate it.

As said, its only a small pot so I am happy to do this myself as our future doesn't depend upon the income from this pot.

I suppose the first questions to ask then are...

- Where do I search for an enhanced annuity?

- What should I be looking out for when deciding which to go for?

- Am I obliged too seek IFA advice regarding this or can I 'go solo'? By this I mean will I be able to move the funds without recourse to an IFA?

Thanks again

[JulianPH]

oblio said:

Thanks both - we appreciate it.

As said, its only a small pot so I am happy to do this myself as our future doesn't depend upon the income from this pot.

I suppose the first questions to ask then are...

- Where do I search for an enhanced annuity?

- What should I be looking out for when deciding which to go for?

- Am I obliged too seek IFA advice regarding this or can I 'go solo'? By this I mean will I be able to move the funds without recourse to an IFA?

Thanks again

If this income that is surplus to requirements then drawing it down may be a better option than an enhanced annuity.

1) Comparison websites. This is a good starting point - https://moneyfacts.co.uk/retirement/annuities/

2) The first thing is to decide whether using this money to buy an annuity is indeed the best option. It may be, but it may not be.

3) No, you have no obligation whatsoever to seek financial advice unless it is a workplace Defined Benefit pension worth over £30,000. If it is any form of personal pension or a workplace Money Purchase pension you are free to make your own choices without having to pay an IFA a penny.

Please feel free to ask (or PM) me with anything else.

[anonymous-user]

Hi OP, I founded and ran a fairly large scale service helping people find IFAs.

They're not usually too keen on low value annuities, as there's not much chance of an ongoing relationship after the initial transaction and the commission isn't going to be particularly high.

I don't have any affiliation with annuity specialists, however if you Google businesses such as Retirement Line, Pensionlite and My Pension Expert, they are all likely to be enthusiastic about finding you the best enhanced deal (which is something they specialise in and do in volume).

[oblio]

Thanks

I'll add it to my research

...and thanks to Julian PH too, with whom I have swapped a few emails.

[mikeiow]

JulianPH said:

If this income that is surplus to requirements then drawing it down may be a better option than an enhanced annuity.

1) Comparison websites. This is a good starting point - https://moneyfacts.co.uk/retirement/annuities/

2) The first thing is to decide whether using this money to buy an annuity is indeed the best option. It may be, but it may not be.

3) No, you have no obligation whatsoever to seek financial advice unless it is a workplace Defined Benefit pension worth over £30,000. If it is any form of personal pension or a workplace Money Purchase pension you are free to make your own choices without having to pay an IFA a penny.

Please feel free to ask (or PM) me with anything else.

Wow!
WOW!
Aren't annuity rates LOW!

I thought I would run a test, out of idle curiosity.
Keep 50% for (*cough* older!) spouse after my death.....rise at 3% pa for inflation

£100K pot......£2,275pa

Wow. I expected low, but was thinking it would be around the 5-6K low. Slightly stunned, tbh!
Sure, this is just one check, and no doubt there are some negotiable elements available if one were to dig....it went up slightly when I mentioned high blood pressure, but otherwise it started low and went lower!

On the bright side, at least it 100% validates my thinking to take a drawdown approach

[anonymous-user]

Slight exaggeration, however annuities pretty much died overnight when the chancellor announced pension freedoms in spring 2014. By the time they came in in 2015 many annuity specialists had gone to the wall.

There are also less providers in the marketplace now as demand has dried up. Not to mention the current economy means rates are ste, too.

[mikeiow]

janesmith1950 said:

Slight exaggeration, however annuities pretty much died overnight when the chancellor announced pension freedoms in spring 2014. By the time they came in in 2015 many annuity specialists had gone to the wall.

There are also less providers in the marketplace now as demand has dried up. Not to mention the current economy means rates are ste, too.

Yup, I appreciate that was what did for them.....but even so, I wasn't expecting a number quite so low!!

[Mazinbrum]

With an annuity you wont get more than 30k out in total will you so drawdown would be better ? With no other income or by deferring other income you could get it out tax free in two years ?

[oblio]

Mazinbrum said:

With an annuity you wont get more than 30k out in total will you so drawdown would be better ? With no other income or by deferring other income you could get it out tax free in two years ?

I think that is where we are at tbh...

I'll discuss it with Mrs Oblio but my thoughts are to get the 25% tax free lump; then draw down either side of the end of the tax year...



...then blow it all on a decent car upgrade

[Simpo Two]

oblio said:

I'll discuss it with Mrs Oblio but my thoughts are to get the 25% tax free lump; then draw down either side of the end of the tax year...

...then blow it all on a decent car upgrade

Or spend the 25% on the car and the rest into an ISA? - that way you can get some growth/income.

Remember that anything to with cars is almost always a shockingly bad investment!

[oblio]

Simpo Two said:

oblio said:

I'll discuss it with Mrs Oblio but my thoughts are to get the 25% tax free lump; then draw down either side of the end of the tax year...

...then blow it all on a decent car upgrade

Or spend the 25% on the car and the rest into an ISA? - that way you can get some growth/income.

Remember that anything to with cars is almost always a shockingly bad investment!

We already have some ISAs doing nicely so yes, any surplus will probably be put into that...

[Simpo Two]

oblio said:

We already have some ISAs doing nicely so yes, any surplus will probably be put into that...

Thank you, that will be 1% of everything please

[oblio]

Simpo Two said:

oblio said:

We already have some ISAs doing nicely so yes, any surplus will probably be put into that...

Thank you, that will be 1% of everything please

..certainly

1% of nowt is still nowt!