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Annuity Purchase
When considering how to use your pension fund most effectively to provide an income for retirement, there are many rules and regulations that must be taken into account. This, combined with a wide range of providers and products on the market, means that it can be very difficult to ensure that you obtain the best income available in your retirement.
The variations between the annuity rates offered by different pension companies can be up to 25%. A company offering the highest rates for one particular type of annuity may provide poor rates for other types, and not all companies offer the full range of annuity options. Annuity rates can also fluctuate with market conditions and are generally guaranteed for a period of only 14 days. All these factors contribute to the complexities involved in choosing an annuity provider.
Barnett Waddingham Investments offer an 'Annuity Purchase' service, providing you with the necessary information to guide you through all aspects of purchasing an annuity, to ensure that you retire with the best possible income.
We will work closely with you and will keep you updated on our progress. As our client you are free to call us at any time for a progress report.
The Annuity Purchase service is appropriate where you have decided on a conventional annuity, and its shape. We would then provide advice solely on the most competitive provider for your chosen annuity, and establish the annuity. The purchase of an annuity is an irrevocable decision, once in place, an annuity pays an income for the rest of your life, and under current regulations you are not allowed to change the product or provider should your circumstances change.
We do not recommend this service for impaired life annuities, enhanced rate annuities, asset back annuities or other styles of non-conventional annuity due to the complexities involved in these products.
If you are unsure of the shape of the annuity you require (or the style of annuity), we would be pleased to talk through the options with you. If you require advice on your retirement options, we would refer you to our
Retirement Options Advice service.
Our service
We will:
- Research the current market place on your behalf. Barnett Waddingham Investments LLP has access to the current annuity rates of all providers, and this information is updated daily. We will also conduct individual research, which enables us to take into consideration your own personal circumstances.
- Provide you with the relevant partially completed application forms and quotations once we have determined the best available rates. As annuity quotations are usually only guaranteed for 14 days, it is advisable to return the signed application form without delay.
- Arrange the payment of your pension fund (s) to the selected annuity provider. Due to delays by third parties, it is possible that a quote guarantee may expire; however we will endeavour to ensure that you obtain the best rate available at any given time.
Our costs
The costs for these may be met by paying a fee for which you will be invoiced at the time the work is completed, or you may elect to allow us to take a commission from the chosen provider.
In some circumstances, the commission received may not be sufficient to cover our costs. If this situation arises we will inform you well in advance and agree a budget for the excess work. This situation is most likely to arise where the purchase funds are from a number of different sources.
If you wish to proceed
Should you wish to instruct Barnett Waddingham Investments to undertake this work on your behalf, the following paperwork will be requested:
- A Terms of Business letter: Two copies will be sent to you, one copy for your own records and one to sign and return to Barnett Waddingham.
- A Retirement Options Fact Find: This summarises the information we need to undertake a full review of your personal circumstances, and to provide a report on the range of options available to you at retirement.
- Verification of Identity.
However, if you are in doubt as to whether an annuity is the right option, you should speak to one of our advisers.