Question
Where can I find a list of discount pension annuity brokers please?Answer
Pension annuities generally pay a one-off commission of about 1%. While the percentage is low, transaction sizes tend to be large so annuity commissions can still total hundreds or thousands of pounds - making commission rebates well worthwhile.
However, annuity discount brokers are very thin the ground these days - to the point I've only managed to find two:
Annuity Discount Brokerage - rebates between 51%-80% of the commission they receive.
Moneyworld - rebates up to 1% commission.
I think the lack of discount brokers willing to handle annuity business is a reflection of just how big a pain insurance companies are to deal with. In an ideal world a discount broker would transact your annuity business for a fixed admin fee, after all, there's no more work processing a £100,000 annuity than one for £10,000. But factor in the time and hassle typically involved with submitting and chasing up pension annuity applications and most discount brokers seem to have come to the conclusion that it's simply not worth their while.
I included the two discount brokers above in a comparison here (look about halfway down the page), Moneyworld had the better quote. Nevertheless, these things can frequently change so I'd get quotes from both the above and a couple of non-discount annuity specialists to see who comes out top.
Where can I find a list of discount pension annuity brokers please?Answer
Pension annuities generally pay a one-off commission of about 1%. While the percentage is low, transaction sizes tend to be large so annuity commissions can still total hundreds or thousands of pounds - making commission rebates well worthwhile.
However, annuity discount brokers are very thin the ground these days - to the point I've only managed to find two:
Annuity Discount Brokerage - rebates between 51%-80% of the commission they receive.
Moneyworld - rebates up to 1% commission.
I think the lack of discount brokers willing to handle annuity business is a reflection of just how big a pain insurance companies are to deal with. In an ideal world a discount broker would transact your annuity business for a fixed admin fee, after all, there's no more work processing a £100,000 annuity than one for £10,000. But factor in the time and hassle typically involved with submitting and chasing up pension annuity applications and most discount brokers seem to have come to the conclusion that it's simply not worth their while.
I included the two discount brokers above in a comparison here (look about halfway down the page), Moneyworld had the better quote. Nevertheless, these things can frequently change so I'd get quotes from both the above and a couple of non-discount annuity specialists to see who comes out top.
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