Looking around for best Annuity...

[cardiac arrest]

Probably not many like me who in a couple of years will be looking around for the best annuity rates...but I thought I might share something I only recently found out.

I had a works pension I transferred to a private provider (Aviva) and as I am approaching cash in day they are writing to me more often about the benefits.

One thing they did say was the prevalence of any 'medical issues' I might have. They said they have a form which can be filled in which will be independently assessed and 'may' result in improved benefits upon retirement.

So, I asked them to send this, and it came from some other outfit who will go through the answers I gave.

Questions include the usual stuff about have you had medical problems etc etc, but also stuff about weight, drink, smoking, lifestyle and so on.

I took maybe half an hour to fill in, and Aviva will be given the assessment, and a copy will be sent to me. It will not reduce the benefits already quoted to me, it can only increase the benefits..so it's a can't lose situation really, and can result in some quite significantly improved payments.

The added attraction too is that if I want to obtain annuity quotes from other providers the same information will be shared with them so they all take this info into consideration...you don't have to fill in the same data for every provider.

Like I said, it's a while off yet, and probably a while off for most of you lot...but worth remembering I would think...ask them for the form, you've nothing to lose.

[pompeyfaith]

Re: Looking around for best Annuity...

Thanks for this very useful although have 16 years to go yet, but one other point I will need to look into is the fact I have 3 works pensions and wondering if it was worth transferring 2 of them into the other one.

[cardiac arrest]

Re: Looking around for best Annuity...

Thanks for this very useful although have 16 years to go yet, but one other point I will need to look into is the fact I have 3 works pensions and wondering if it was worth transferring 2 of them into the other one.

I don't know, but you can ask them to quote you...then you can compare the benefits from both schemes. They won't charge for giving an estimate, you just need to get a transfer value I think it's called..then give that to new scheme to evaluate.

Thing to look out for too is death/widows/dependents benefits as well as pension/lump sums etc...

[The Tech Clerk]

Re: Looking around for best Annuity...

get advice on transfer of the 3, as I have 3 different ones and one main old transfer 32 main pension with Aviva, two of which were the same company so they were automatically merged into one 6 monthly pension payout, another pays out once a year and another pays out every month also the Aviva (main) pension pays out monthly minus tax of course, (on the smaller pension tax paid as the main one just fixes in with state pension so on the limit).another thing to watch is that at the age of 55 yrs you cannot increase payments into an existing pension you have to take out another stake holder pension (Gordon Browns idea years ago)so be wary, hence I have so many small pensions.

The section 32 was a mis-selling scandal in my case by RBS they had to correct the position I would of been in if the Company Pension had not been transferred out at the time, also what came out at the time the FSA reccomended (Note only Reccomended) that the Trustees of the company scheme allow you back into the company run scheme) they refused, what transpires then

1. I missed out on being payed a Pension from the age of 60 yrs which the old company seemed to do with pensioners aged 60.

and a worse estimate of pension on retirement, as Norwich Union ceased paying annual payments into pension from year 3-4, hence fund total was static for 15 years.

It is a mine field.

[The Tech Clerk]

Re: Looking around for best Annuity...

only thing I have found is that because you have tried to save for Pensions in later age you get no benefits from the state i.e. rebates on council tax etc as would the person who has pension credits, they get the benefits and you do not, yet they receive the same/near amount in benefits as you may receive from the pensions.(topped up).

[The Tech Clerk]

Re: Looking around for best Annuity...

Luckily an old section 32 pension with Aviva (ex Norwich Union) was covered with certain guarantees so the final amount was better than any forecast from other pension providers, so it would seem you need to look around for best rates (not good at the moment it seems) to get an idea of possible income.

[The Tech Clerk]

Re: Looking around for best Annuity...

What ever you do is get estimates from all over the place then digest each estimate, and remember it is only estimates, if you find that you have estimates of an income (small) like I have is to start taking your pension earlier and a lump sum from the smaller ones as you will no doubt receive more than if you waited to actual retirement date. although any income over your allowance is taxable you will still have that bit extra from the pension income earlier always handy near retirement.

Remember:-

"Forewarned is Forearmed"

[mgfboy]

Re: Looking around for best Annuity...

Before you do anything find a good IFA to talk over the various options becuase taking an annuity isn't always the best thing to do.

It is funny though , it's the one time in the insurance world where being in poor health ( it's doesn't take much to have and effect) is good for your pocket

[pompeyfaith]

Re: Looking around for best Annuity...

Thanks for the advice guys, Yes ill get some independent advice on this especially as I am ion poor health due to stroke. I am also 50 in June so best get it sorted now if only for my wifes peace of mind.

[The Tech Clerk]

Re: Looking around for best Annuity...

WOW! my pension is going up £3.00, hope it don!t break the Bank of England and is double MPs increases?

Dam that means a private very small pension will get smaller! (more tax)

[cardiac arrest]

Re: Looking around for best Annuity...

Luckily an old section 32 pension with Aviva (ex Norwich Union) was covered with certain guarantees so the final amount was better than any forecast from other pension providers, so it would seem you need to look around for best rates (not good at the moment it seems) to get an idea of possible income.

Blimey , it's not just me then Tech Clerk ?

I too have a section 32 with Aviva..with a guaranteed minimum pension (thankfully). I've given Aviva hell over the years due to their stopping bonuses, and of course the original estimates given me when I transferred are laughable now.

I was given real bad advice though by a local IFA, who i tried to sue but failed. basically I moved jobs to work for Local Govt and a final salary pension scheme...but was told the best option was to t/f into a section 32. This has cost me thousands as it hasn't grown and doesn't pay out until I'm 65, whereas the final salary scheme would have given me about 6 extra years service and would have been paying out now as I retired early. Plus once the added years were applied, all my salary increases as I progressed at work would have been added to my pension, while my fund at Aviva stagnated.

I will get the guaranteed pension, but that will be about £2,000 pa less than I would have got, plus about £6,000 lump sum I would have received on early retirement...and it's 8 years since I retired.

I reckon if I live to 80 , that advice will have cost me around £60,000 in lost income.

So yes, seek advice...but seek it from more than one source before you make a decision. ask around, go on the web etc...which I should have done had I been a bit more aware of these things at the time...

[cardiac arrest]

Re: Looking around for best Annuity...

Thanks for the advice guys, Yes ill get some independent advice on this especially as I am ion poor health due to stroke. I am also 50 in June so best get it sorted now if only for my wifes peace of mind.

I will see how much impact my health form has on the life expectancy assessment...and subsequent pension 'increase' ...But yes, anyone with any health 'issues' should definately declare everything providing you can back it up with GP and Consultant etc. I'm sure they check it out.

Also, be aware your Dr may charge for some for information, I was quoted £32 to get blood pressure and cholesterol results from previous tests, but all I did was book myself in with the Doc for a check up and then get the results from him when he called me in to discuss...didn't cost me a penny that.

[pompeyfaith]

Re: Looking around for best Annuity...

BTW I also have a section 32 which was with Norwich Union think it too is now with Aviva although not certain off the top of my head will have to find latest statement.

Thanks cardiac arrest am on good terms with my GP and is alway's willing to help were he can so no issues there.

[mgfboy]

Re: Looking around for best Annuity...

I will see how much impact my health form has on the life expectancy assessment...and subsequent pension 'increase' ...But yes, anyone with any health 'issues' should definately declare everything providing you can back it up with GP and Consultant etc. I'm sure they check it out.

Also, be aware your Dr may charge for some for information, I was quoted £32 to get blood pressure and cholesterol results from previous tests, but all I did was book myself in with the Doc for a check up and then get the results from him when he called me in to discuss...didn't cost me a penny that.

If the annuity provider wants medical info from your GP they normally pick up the tab. I've never heard of them requiring you to get the info and pay for it.

[cardiac arrest]

Re: Looking around for best Annuity...

If the annuity provider wants medical info from your GP they normally pick up the tab. I've never heard of them requiring you to get the info and pay for it.

What they asked for was the last 2 'readings' to be written on the form...and I didn't have two. I rang the Dr for the info and they said they would charge me. that's how it panned out. Am sure any requests to my Dr from the insurance company will be paid for by them, and not me...let them try I say !

I don't pay bills...I'm from Yorkshire...