Must a broker be used to buy an annuity from existing pension scheme manager?

[Protocol]

I am asking a question on behalf of a friend.

Aged 50 now, married with two children, used to work for company A, and was in company A pension scheme, DC fund, now worth 45k.

Person left company A years ago, now works for HSE, and is a member of the post-2013 SPSPS.

The company pension scheme is now managed by Standard Life.

As the person has crossed the age 50 mark, want to get some benefits from the DC fund.

I think they are taking the max possible TFLS, and they are choosing to buy an annuity with the balance.

Standard Life will sell the annuity, or they could buy the annuity elsewhere.

Standard Life are asking the question: who or what is your financial adviser?

If the person is happy to buy from SL, must a broker be used?

 

[Dave Vanian]

If the person is happy to buy from SL, must a broker be used?

As far as I know, Standard Life will deal directly with the public so they should be able to buy the annuity directly from Standard Life.

My experience is that Standard Life annuity rates are not usually the best in the market and I don't know what commission they take when dealing directly with a customer. (Commission of up to 5% can be baked into annuity rates, so if a sales channel is taking 2% rather than 4% commission, the annuity rate should be better, even with the same company.) So I think it would be worth asking a broker to run quotes, if only to compare with Standard Life's offering.

 

[Kev1964]

Having looked at several Irish annuity rates recently I agree with Dave that SL’s rates are not the best right now. They do have a direct dealing service.

There is a broker on here offering 0.5% commission with Zurich on an execution only basis and their rates are quite competitive.

 

[Brendan Burgess]

Yes, you should ask for a quote from a discount broker e.g.

LA Brokers

Ferga.com is not a discount broker but Liam contributes here and might well do a deal if you mention Askaboutmoney.

Brendan