The question of can you get a better annuity rate direct from an annuity provider? is mentioned elsewhere on this website. I am highlighting it again; (a) because certain customers are raising the question, believing that cutting out the advice issue (the independent financial adviser (ifa)…Bank of Scotland Annuity Service on this website) will lead to a better rate because no commission is payable, and, (b) because certain big name insurance companies are reporting growth in direct business.
First, you do not get a better deal going direct to an annuity provider. There may be no commission, but the rate is exactly the same as going through an ifa where there is commission. Secondly, the insurance company, whoever they are, can only comment on their own products. The ifa has the choice of the whole market, including some specialists, and is therefore well placed to get you a better deal than if you went direct. Conclusion: use an ifa if you want a better income in retirement.
