There is an interesting and currently active thread on here on what the best ARF charges could be for a new customer.
As annuities are becoming ever more attractive it would be very interesting to see some similar comment on what the most cost effective way to buy an annuity might be. In my case my fund is currently either €560k if I invest the lot or maybe less if I take a TFLS. I'm not assuming I will take a TFLS as Marc recently and successfully challenged my thinking that I would automatically do so. I don't need to release this cash. I can get 5%+ on an annuity so a lot better than in a bank and with no investment risk (compared with an ARF).
So now I'm thinking of buying an annuity with c€500k, no advice wanted. No escalation and single life. Guarantee of 10 years wanted if possible.
What's the cheapest and most effective way to buy this? And then are there any ongoing charges?
As an example I can see on the Zurich Drawdown Calculator that the quotes include 3% commission.
"The annuity rate is based on a single life annuity paid monthly and in arrears with escalation of 0.0% per annum and a guaranteed period of 5years. Commission of 3.0% is assumed in this rate".
ARF charges
I will be retiring early (59 yrs) in the next 18 month's and plan to go down the ARF route and of course I will be getting professional advice. I plan to take 25% lump sum and go with a 75% passive global equity and 25% cash mix with the remainder. My question is which company has the lowest...
www.askaboutmoney.com
As annuities are becoming ever more attractive it would be very interesting to see some similar comment on what the most cost effective way to buy an annuity might be. In my case my fund is currently either €560k if I invest the lot or maybe less if I take a TFLS. I'm not assuming I will take a TFLS as Marc recently and successfully challenged my thinking that I would automatically do so. I don't need to release this cash. I can get 5%+ on an annuity so a lot better than in a bank and with no investment risk (compared with an ARF).
So now I'm thinking of buying an annuity with c€500k, no advice wanted. No escalation and single life. Guarantee of 10 years wanted if possible.
What's the cheapest and most effective way to buy this? And then are there any ongoing charges?
As an example I can see on the Zurich Drawdown Calculator that the quotes include 3% commission.
"The annuity rate is based on a single life annuity paid monthly and in arrears with escalation of 0.0% per annum and a guaranteed period of 5years. Commission of 3.0% is assumed in this rate".