SURREY, UNITED KINGDOM — (Marketwire) — 12/10/12 — December 2012 is a significant month for people who are . UK providers have until 21 December to equalise annuity rates for men and women, whilst there will also be fundamental changes to the way financial advice is provided and paid for.
The current system of providers paying commission to financial advisers for arranging annuities will be replaced with a new fee based system. And Tim Gosden Head of Annuity Product Development at Legal & General believes that the annuity advice landscape will look very different in the coming months.
“Seeking financial advice remains a sensible option when it comes to buying your annuity but you-ll need to make sure that your adviser offers the services you need. If your adviser is helping you decide which annuity to choose, they-ll need to charge you a fee from the start of 2013. You can choose to pay this yourself or have it deducted from your pension fund or tax-free lump sum.
Be sure to check if your adviser offers a -whole of market- service, as this will help ensure you get the best annuity rate available and don-t miss out on extra income. Many advisers are likely to offer a -self-select- service where they provide clients with information about products and providers, but don-t actually advise them which they should choose. If they act as an -intermediary- in this way, a provider can still pay them commission.
Alternatively, if you-re confident that you understand your buying options, you can consider doing your own shopping around and buying direct from your chosen provider.”
Tim added; “21 December just also happens to be the end of the world should the prediction of the Mayans, an ancient civilisation, hold true. But in case we-re still here after this date, remember that buying an annuity is an important once and for all decision. Consider your options carefully and make an informed decision.”
Contacts:
Legal & General
Timothy Gosden
Head of Annuity Product Development
01737 375289
Legal & General House
Kingswood, Tadworth. Surrey,
United Kingdom, KT20 6EU