Update on Annuities

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The FCA is going to force annuity providers to tell customers how much they can gain from shopping around.

Providers will need to give customers personalised information on their options, and they will need to show how much the highest quote available on the open market differs from their own.

This is a welcome step forward, as the FCA said that its research had shown 60 per cent of annuity customers failed to switch providers, and they estimated 80% could have got a better deal. This backs up our own experience.

We would suggest that it is as important to make sure the annuity is set up in the correct way.

For example, do you include…….a dependent’s benefit and if so at what rate, a guarantee period and if so for how long, value protection, escalation, have it paid monthly or annually, in arrears or advance, should you buy an invested annuity, a variable annuity, a fixed term annuity, a hybrid product (you get the point).

Also it is important to check whether you might qualify for an enhanced rate, as this can give a big increase in rates.

We feel it is important to get advice, to make sure you set up the right annuity and get the best rate, as normally once you have bought an annuity you normally cannot alter it.

This is an area we specialise in. We can advise on the full range of options, including looking at alternatives too, so an informed decision can be made. We automatically search the market for the best rate, rather than being told to do so, as we work for you.

We can help. Call us 01543 440300

Today is the right time

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We advised our client to delay taking his pension a few years ago, as it had special benefits. We’ve today set up an annuity for him, which is 159% higher than he could buy on the open market.

Why not make an appointment with us TODAY on 01543 440300 to review your finances, and see what we can do to help you?

One in three families in England could not pay their rent or mortgage for more than a month if they lost their job, a study for the charity Shelter suggests

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http://www.bbc.co.uk/news/uk-england-37017254

Planning for this kind of event can often be a forgotten activity. Call or email us to look at protection costs, you’ll be surprised at how affordable peace of mind is.

01543 440300                           enquiries@acuityfinancial.co.uk

Have you checked your pensions or savings recently?

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With so much going on, it’s easy to simply file those pension and investment statements without a second glance, as surely the provider will be making sure that your nest egg is performing as effectively as possible.

Well, think again. In many circumstances, unless you make a conscious effort to review performance and change your investment strategy, then nothing at all will happen to ensure that your investments strategy is working in the way it was designed.

Why not call or email us for a no-obligation appointment on 01543 440300 or enquiries@acuityfinancial.co.uk

 

The cost of raising a child

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In their 13th Annual Report on the yearly cost of a child LV Report that the headline cost of raising a child to 21 is now £231,843 making it more expensive than the average house.

Also included in the report is the cost of childcare and babysitting, which now accounts for a staggering 30% of the total cost.

Whilst none of us likes to dwell on our mortality, perhaps its time to look at the level of life cover that you have in place.

Call us on 01543 440300 or email us on enquiries@acuityfinancial.co.uk to talk about your needs.

Read more here

 

Deadline to the Breadline

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Legal and General’s Deadline to the Breadline report shows that on average people could be on the breadline in just 29 days, if they suffered a critical illness, injury or the death of the main breadwinner. This reduces to just 14 days for working age families (18-64 years old).

Read more here

Acuity can help by finding the best cover for you.

Call us on 01543 440300 or email us @ enquiries@acuityfinancial.com

 

The value of timing? Actually about £1,525.

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One of our long standing clients approached us for advice as his mortgage product was ending. We reviewed his options, and agreed he would like to take out a 5 year fixed rate. Having reviewed the market we concluded his best option was to take an offer from his existing well known high street lender.

Our client spoke to the lender, and was offered a rate of 2.84%.  A few weeks later we went to apply for this, to find the rate had changed to 3.19%. The client was happy to go ahead with this, but we could see no reason for the change. We therefore suggested he should wait whilst we did a little more digging.

On checking the numbers we found that his loan to value was just under the 80% mark, but on checking the rates we found the rate he was being offered was for loans over 80%. It was possible the lender had changed their recorded property value, but this seemed unlikely.

After much pondering we came up with a possible answer. As the lender charges daily interest, then this is added to the loan every day. This could mean that over the month then he could be pushed over the 80% threshold, and by looking later in the month the products had changed. We therefore suggested waiting until the start of the next month, and then re-apply for the product change.

We did this, and were offered the original rate. By waiting a few days to do the application (which still doesn’t come into effect until the start of next month) we have saved the client £1,525.80 over the next 5 years. There is value in knowledge of maths, and questioning odd answers, and also understanding how bizarre the systems of some product providers are.

Why not call us and make an appointment for a free consultation.

Call us now