22/05/2012 00:04:22
Topic:
What change will RDR have on annuity & DD advice?
Billy Burrows
Administrator
Posts: 21
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RDR will change the way you advise your clients in the following ways:
- It will be necessary to agree fees in advance - no longer able to rely on annuity commission
- You will need to explain the scope of advice – Independent or restricted
- It will be good practice to explain what is involved in the advice process – step by step process
- You will have to justify any additional work / advice if an annual fee (trail) is charged - No longer able to take trail commission
edited by Billy Burrows on 22/05/2012
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20/05/2012 22:45:42
Topic:
Should I purchase annuity before 31/12/2012?
Billy Burrows
Administrator
Posts: 21
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Should I purchase annuity before 31/12/2012 when gender neutral annuity pricing comes into effect?
This requires more than a short answer - on the one hand annuity rates may drop because of falling yields and the onset of gender neutral pricing. I dont think genger pricing will have a huge impact - perhaps 1-2% fall rather than 10% as some predict.
I am more concerned about falling yields - The longer answer is that you should speak to an expert but even the few that call themselves experts can't agree
edited by Billy Burrows on 22/05/2012
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20/05/2012 22:15:36
Topic:
On what date is the new GAD rate set?
Billy Burrows
Administrator
Posts: 21
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Don't forget you can use our drawdown calculator to find the current GAD rates http://www.williamburrows.com/rates/ddcalcs.aspx
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15/04/2012 22:12:29
Topic:
Annuities and RDR
Billy Burrows
Administrator
Posts: 21
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Noel, you semed to have missunderstood the basis principle of RDR - – consumers are to be offered a transparent and fair charging system for the advice they receive
It is not the product that is affected but the advice.
This means that if annuity is sold without advice it is not covered by RDR but if advice is given it will be covered by RDR
edited by Billy Burrows on 15/04/2012
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15/04/2012 22:04:31
Topic:
Annuities and RDR
Noel Cooper
Posts: 1
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I read somewhere that annuities are not covered by RDR because there is no investment element - is that correct?
Thanks
Noel
edited by Noel Cooper on 15/04/2012
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22/03/2012 13:49:41
Topic:
Trivial / small pension fund
Billy Burrows
Administrator
Posts: 21
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Yes you can take pensions as cash providing they are below £ 18,000
see our webpage on Trivial Pensions - http://www.williamburrows.com/annuity/trivial.aspx
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22/03/2012 13:47:04
Topic:
Trivial / small pension fund
Sheila Bond
Posts: 1
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I have a small pension of £ 15,000. Can I take it as cash or must I buy a small annuity?
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16/03/2012 15:25:38
Topic:
On what date is the new GAD rate set?
Billy Burrows
Administrator
Posts: 21
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use the yield for the15th of the month - see below
Obtain the yield (strictly a gross redemption yield) on UK gilts (15 years) from the FTSE UK Gilts Indices, as published daily in the Financial Times newspaper, for the 15th day of the calendar month before the calendar month in which the point of calculation falls. Where the pensioner is under 23, the 5 years yield should be used. These yields are published in the Financial Times on the following day. If the 15th day of the preceding calendar month is not a working day,
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27/02/2012 22:17:42
Topic:
Is Better Retirement Group regulated by the FSA?
Billy Burrows
Administrator
Posts: 21
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Yes, Better Retirement Group is regulated by the Financial Services Authority.
FSA Firm registration number: 153420
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27/02/2012 21:29:22
Topic:
What is the "Open Market Option"?
Billy Burrows
Administrator
Posts: 21
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The annuity market is very competitive and the rates differ between companies. You can substantially increase your pension income by purchasing your annuity from the company which pays the most income. This is called "Exercising the Open Market Option".
It costs nothing to take advantage of this option and new rules introduced recently by the FSA means that insurance company must tell you about this option. Check out the best annuity rates using our online annuity calculator.
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27/02/2012 21:28:30
Topic:
What tax do I pay on my annuity?
Billy Burrows
Administrator
Posts: 21
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Annuities are normally quoted gross but paid net of tax. The amount of tax is calculated using your tax code.
If you are liable for higher rate tax this will taxed accordingly
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27/02/2012 21:27:39
Topic:
How safe is an annuity?
Billy Burrows
Administrator
Posts: 21
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The payments from standard annuities are guaranteed as long as the company is solvent. If an insurance company was to be declared insolvent and unable to pay your annuity, you would be covered by the The Financial Services Compensation Scheme (FSCS).
The amount of compensation is 100% of the first £2,000 plus 90% of the remainder of the claim. Policyholder protection is triggered if an authorised insurer is unable, or likely to be unable, to meet claims against it, for example if it has been placed in provisional liquidation.
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27/02/2012 21:25:57
Topic:
Who are Better Retirement Group
Billy Burrows
Administrator
Posts: 21
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Billy Burrows and Tim Eadon established launched this specialist annuity and drawdown advisory firm in 2009.
Billy has traded as William Burrows Annuities since leaving Prudential in 2001 where he was marketing director for annuities. He regularly features in the national media commenting, writing or speaking about annuities.
Tim is a Chartered Financial Planner and started in financial services in 1995 having spent many years working in the leisure industry. He has held many senior posts including CEO of the Personal Finance Society in 2006, the foremost professional body for financial advisers in the UK
edited by Billy Burrows on 27/02/2012
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27/02/2012 21:17:52
Topic:
Annuity guarantee period
Billy Burrows
Administrator
Posts: 21
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Most insurance comapnies will pay out the rest of the guarantee period under trust so as to avoid IHT. However this means that they will discretion over who gets the payments.
Normally this will be a surviving spouse or dependant but if other people are nominated this will be considered by the insurance company.
Continuing payments under a g'ee is subject to PAYE tax (plus a possible IHT liability if considered part of deceased's estate).
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27/02/2012 20:50:24
Topic:
Annuity guarantee period
Steve Miller
Posts: 1
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I have a client who has taken out a joint life annuity with a 10 year guarantee and has asked if the dies can the balance of the guarantee be paid to his children even if his wife is alive
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25/02/2012 10:25:32
Topic:
How we can help you with annuity purchase
Billy Burrows
Administrator
Posts: 21
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There are three ways in which get an annuity quotes
1 - Use our online annuity calculator
2 - Complete our online annuity form
3 - Call us 0207 636 7278
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20/02/2012 01:06:49
Topic:
Charging for annuity advice
Billy Burrows
Administrator
Posts: 21
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Many annuity providers have yet to finalise the exact way in which they will show fees on their quotes but it is expected the following will happen when the fee is to be taken from the pension fund and paid by the provider:
üThe adviser will agree the fee in advance with the client
üThe adviser will tell the annuity provider what fee to show on the quote
üThe insurance company will calculate the annuity income paid to the client taking into consideration the amount of the fee
üThe annuity quotation will show the annuity income and fee payable to the adviser
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31/01/2012 00:23:37
Topic:
Charging for annuity advice
Charles Bailey
Posts: 3
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How will I know what to charge for advice when the new RDR rules come into force
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30/01/2012 23:56:44
Topic:
Any spouse
Billy Burrows
Administrator
Posts: 21
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There are basically two options.
1 the joint life annuity can be paid to the named spouse or dependant
2 the joint life annuity can be paid to the spouse at the date of death - i.e. any spouse
There is a cost implication because option 2 is more expensive because the annuitant could remarry a spouse much younger.
Finally, protected rights must be any spouse but these are disappearing in April 2012
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29/01/2012 18:27:30
Topic:
Any spouse
Chis Foster
Posts: 1
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Please can you explain the options for any spouse in relation to a joint life annuity - thanks
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