Retirement Advantage Hybrid Product
Nathan
Member
Hi All
In a bid to try and save you time, I just looked at the hybrid product being offered by Retirement Advantage whereby they allow you to purchase an annuity and leave any remainder in drawdown.
Don't get me wrong, it has a few nice features, but before you recommend it, have a look at how much it would cost you to purchase the same annuity on the open market.
The case I am working on, the client needed a level income (Age 74) of £9k a year (Level) with 100% spouse, which on the open market would cost about £156,667 whereas Retirement Advantage want £172,149 a difference of £15,482. The rep tried to argue about having one product and the added flexibility, but for £15k I am not certain it is worth the value.
I have not completed my research yet, but as of now, I know Transact will allow a transfer of Crystallised Capped to FAD and then partial transfer to purchase an annuity which achieves the same thing without the £15k immediate loss to the client.
Happy planning people
Nathan
In a bid to try and save you time, I just looked at the hybrid product being offered by Retirement Advantage whereby they allow you to purchase an annuity and leave any remainder in drawdown.
Don't get me wrong, it has a few nice features, but before you recommend it, have a look at how much it would cost you to purchase the same annuity on the open market.
The case I am working on, the client needed a level income (Age 74) of £9k a year (Level) with 100% spouse, which on the open market would cost about £156,667 whereas Retirement Advantage want £172,149 a difference of £15,482. The rep tried to argue about having one product and the added flexibility, but for £15k I am not certain it is worth the value.
I have not completed my research yet, but as of now, I know Transact will allow a transfer of Crystallised Capped to FAD and then partial transfer to purchase an annuity which achieves the same thing without the £15k immediate loss to the client.
Happy planning people
Nathan
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