Pensions Care Fees and Life Annuity Advice Service and Fees
Published / Last Updated on 02/09/2024
There are basically three types of annuities available in the UK:
- Pension Annuities where, as the title suggests, after any lump sum, the balance of your pension fund buys a guaranteed income usually for life. Pension income is subject to income taxes.
- Purchased Life Annuities where your own savings are used to buy a guaranteed annuity income for life (or a fixed term), an income is paid to you, of which part is tax free as deemed a return of capital and the other part is taxable.
- Immediate Care Fees Annuities where your capital/savings are used to buy a guaranteed income for life (usually linked to care fees prices increases) and paid direct to the residential care home.
Annuity Comparison Sites
There are several annuity rate comparison sites online, even the FCA has one via its moneyhelper.org service but they usually do not cover all annuity providers and also may not offer accurate ‘ill-health’ enhanced annuity providers.
Our Annuity Comparison Service
We offer:
- Fixed fees as annuities are usually guaranteed, so we consider them low risk advice and therefore do not charge a risk premium on our fees.
- Whole of market research where after you have completed our financial questionnaire and a health questionnaire, we will search the whole market and submit your health details to all providers to find the most suitable annuity for you, be that highest rate, most flexible options, administration, or other features that may be important to you.
- Application forms will be handled by us, usually submitted online as well as paper as well as then arrange for the pension funds transfer to take place or your funds to be invested with the annuity provider.
- Authority administration such as HMRC taxes or arranging payments direct to Care Homes will be handled by us.
Our Fees are fixed fees with no risk premium charged as we consider this to be a low-risk advice area.
Annuities were out of favour for many years due to lower interest rates but given higher interest rates and therefore higher government ‘gilt’ yields (costs of government borrowing) have pushed annuity rates up as well as annuity providers being more innovative and offering products that may proves more attractive to consumers today.
We believe we offer a complete annuity comparison, advice and arrangement service taking away all the pain of research, taxes, refunds and dealing with providers and third parties.
