With Profit Annuities

With Profit Annuities

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Compare pension services for self invested pensions (SIPPs)  where you can pull your existing pension plans into one place.
Lost track of old pension plans? Service for tracking down plans from previous employments.
Annuity service if you are looking to buy a guaranteed income from your pension pot.

FREE Guide – Retiring Early!

8 tips for an earlier, wealthier retirement

Transforming that dream into a reality doesn’t come cheap, how could you afford it? Once you have paid off debts, like it or not, the answer is likely to depend on your pension.

Straightforward guide provides eight tips that could help you to retire earlier than you thought, including:

  • The simple formula for how much you should consider investing each month
  • How to boost existing pensions
  • Understanding the options available at retirement (including the new rules)

This guide is not personal advice. Please remember tax rules can change and the value of the tax benefits will depend on your circumstances. The value of investments can fall as well as rise so you could get back less than you invest. Pensions cannot usually be withdrawn until age 55 (increasing to 57 in 2028).

FREE Guide – 8 Tips To Retire At 55 »

Self Invested Pension

Take Control of your pension!

self-invested personal pension (SIPP) is different to a traditional pension. Instead of limiting your investment options, a SIPP opens the doors, giving you more choice in how you invest your money. Like other pensions, the government will still give you up to 46% tax relief on the amount you pay in. Once your money is in a SIPP, you won’t have to pay tax on any gains or income your investments make.
  • Low cost award winning pension – Fixed fee plan keeps costs down over long term
  • Investment choice – Choose from more than 40,000 investments
  • Ready made funds and investment ideas – Making it easy to select investments
  • Expertise – Research, ideas, and updates to help you with your investment decisions
Low Cost Self Invested Pension »
Self Invested Pension – FREE Guide

Compare Self Invested Pension Providers

Invest From
£2
Investment Options
Invest in 6,100+ US, UK & European stocks & ETFs commission-free
Fees
From £9.99/month with £0 trading fee & 0.39% FX fee
Transfer In Existing Pensions

SPECIAL OFFER: Get a free share worth between £100 and £2,100 when you open & top up or transfer a SIPP on or before 5 April 2024. Capital at risk. SIPP eligibility, tax rules & T&Cs apply. Free share value weighted on net funding

Invest From:
Any Lump Sum or £25 per month
Investment Options:

A low cost award-winning SIPP that gives you a choice of over 40,000 investments; Selected funds; Ready made portfolios.

Admin Charges:

Sipp fee: £5.99 pm – assets up to £50,000, £12.99 pm – assets over £50,000

 

Transfer In Existing Pensions:

Get your pension SIPP-shape with £200 cashback. Offer ends 5 April. Capital at risk. Terms & fees apply. Min £15k investment. New customers only

 

Why we like it: A new, straightforward way to build your pension has arrived. Open an ii SIPP for just £5.99 a month (assets up to £50,000. Over £50,000 the fee is £12.99 pm). Which? Recommended SIPP Provider 2023. Transfer your pension to an ii SIPP. Terms apply. Capital at risk

Invest From:
Any Lump Sum or £100 per month
Investment Options:

Low-cost personal pension from award-winning provider Bestinvest. Choose from thousands of investments, get inspiration from guides and articles or opt for a Ready-made Portfolio

Admin Charges:

Sipp fee: up to 0.4% pa 

 

Transfer In Existing Pensions:

Why we like it: Choose from 1,000s of funds, ETFs, investment trusts and nearly all UK shares. Alternatively, let experts choose and manage your investments with a low-cost Ready-made Portfolio. Capital at risk.

Invest From:
£25 pm
Investment Options:

A wide choice of investments, including over 2,000 funds, shares from 25 markets, ETFs, investment trusts and more

Platform Fees:

£0 – £250k: 0.25%
£250k – £500km: 0.1%
Over £500k: FREE

Transfer In existing Pensions:

SPECIAL OFFER: Win one of ten £1,000 John Lewis vouchers when you open and deposit £1,000 into an AJ Bell SIPP, Stocks and Shares ISA or Stocks and Shares LISA account before 30th April 2024. T&C’s apply

Why we like it: There are no charges to set up their SIPP and if you are moving an existing SIPP to them there are no transfer in charges. With AJ Bell you can deal from as little as £1.50, and you will never pay more than £5.00 per online deal. With investments, your capital is at risk.
Invest From:
£25 pm
Investment Options:

 

Over 11,000 investments to choose from including funds, investment trusts, ETFs, company shares, bonds and more.

Admin Charges:

 

£0 – £250k: 0.45%
£250k – £1m: 0.25%
£1m – £2m: 0.10%
Over £2m: FREE

Transfer In Existing Pensions:
Why we like it: Award winning pension provider, HL are a FTSE 100 Company and the UKs biggest SIPP provider which is testimony to the service they offer their 1m+ clients. With no setup or transfer in charges, and no charges to buy or sell funds, Hargreaves Lansdown offer a flexible SIPP where you invest as little as £25 pm. With investments, your capital is at risk.
Invest From
£20 pm
Investment Options

 

Thousands of funds to choose from; Select 50 – Browse a list of expert picks. Pathfinder – Risk profiled fund options. Investment Finder – Search 1000s of investment ideas.

Service Fee

Less than £25,000: 0.35% if you have a regular savings plan or £90 (£7.50 a month) if you don’t
£25,000 or more but less than £250,000: 0.35%
£250,000 or more but less than £1 million:  0.20% – and you will automatically qualify for Fidelity’s Wealth Management Service benefits
£1 million+:  0.20% a year for the first £1 million and no service fee for investments over £1 million

Transfer In Existing Pensions
Why we like it:  The Fidelity SIPP offers low cost pricing with an extensive range of investment options with user friendly selection tools as well as planning calculators and retirement guidance. If you are transferring from an existing SIPP they will cover up to £500 of transfer out fees. Fidelity with over $300 billion of assets, are one of the largest money managers in the world. With investments, your capital is at risk.

Annuity Services

Annual Income
£5,138
Payment Terms
Annual income for life
Purchase Amount
£100,000

Pension Finder & Transfer Service

There are no tables for this criteria

With Profit Annuities

With profits annuities are a fairly new concept in the financial services market. A conventional annuity can be seen by some to be a very inflexible product, one which cannot be altered once started and unless indexation is incorporated from outset, your annuity income will remain level throughout your lifetime, thereby eroded by the effects of inflation.

In response to this, the concept of with profits annuities has been developed. With a conventional annuity, the insurance company assumes all of the investment risk – you purchase your annuity with a lump sum and it is up the insurance company to invest this money in order to provide your guaranteed income. You will still receive your annuity income irrespective of whether the insurance company has invested your lump sum wisely.

To get over the perceived lack of flexibility and the potential erosion of your income due to inflation, with profits annuities work by investing your lump sum in the with profits fund of your chosen insurance company. By doing this, you bear the investment risk, not the insurance company. At outset, rather than opting for a level annuity or one which increases each year, you assume a bonus rate.

This will be the bonus rate applying to your with profits fund and if the fund achieves the bonus rate that you have assumed, your with profits annuity will remain level. If the bonus rate applied to the with profits fund is higher than that which you have assumed, your annuity for that year will rise and conversely, if the bonus rate falls, then your annuity will also fall for that year, or until bonus rates rise again above the level of bonus rate that you assumed at outset.

So, if you assume a bonus rate of 3%, and that is what is achieved, your annuity remains level. If after three years, the bonus rate increases to 5% (because of favourable equity markets) then your annuity income will rise too.

Thinking of buying a With Profits Annuity from your pension fund or from private capital? Our Annuity Service provides:-

  • Depending on your pension provider up to 40% More Annuity Income
  • Information on different types of annuity arrnagement including investment annuities
  • Assessment of your circumstances to find the most suitable type of annuity for you or whether there are any other options more suited to you.
  • Information on lifestyle annuities – including  smoker annuities and impaired health annuities you may get even more annuity income.
  • Comparing annuity rates to ensure that you maximise your annuity income.
  • Explaining the annuity options available to you.
  • Helping you with the relevant paperwork to ensure that you annuity is processed smoothly.

The level of with profits annuities that you receive will depend upon the following:

  • Your age at outset and sex
  • The purchase price
  • Annuity rates at the time of purchase
  • Type of annuity required, ie, single life or whether you want to include a widow/widower’s pension
  • Bonus rate assumed

The higher the bonus rate that you assume at outset (ie, the more optimistic you are) the higher the level of your initial with profits annuity income. Essentially, you are banking on high bonus rates just to achieve a level pension. If you assume a zero bonus rate, your initial with profit annuity income is likely to be relatively low (compared to assuming a 5% per annum bonus rate for example) because this means that any bonus rate (even 0.5%) will result in a rising income. So that, the more cautious you are, the more chance you will have of receiving an income that rises on a regular basis, but conversely, the initial income is likely to be lower.

With profits annuities can overcome the problem of your annuity income being eroded due to the effects of inflation and this is especially true in a market where share prices are rising and with the effect that bonus rates are strong. In a time of turbulent share markets, however, and falling or low bonus rates, this could result in reducing annuity incomes, particularly if high with profits bonus rates have been assumed.

With profits annuities aren’t for everyone but they are an option which should be explored. The concept is quite a complex one and it is imperative that when looking at your options on retirement, you do this in conjunction with an annuities specialist who is able to help you at this important but potentially confusing time.

10 COSTLY PENSION MISTAKES

10 Costly Pension Mistakes Millions of Britons Make

  • How to discover if your pension will be enough
  • What ‘free money’ most private sector workers miss out on
  • How to get a share of £41 billion from the taxman
  • How to benefit from the pension freedoms and avoid the traps
FREE Guide – 10 Costly Pension Mistakes »
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