Just Retirement Share Discussion Threads

[bad robot] 27/3/2014 21:56

I think this is a reason this got a good kicking today.
Glad my stop kicked in and took a loss. It could have been worse. Not touching this now



March 27, 2014 1:34 pm

Ministers have imposed a cap of 0.75 per cent on charges for workplace auto-enrolment pensions from April 2015 and threatened to cut it further in future.
The move deals a second blow to the insurance sector only days after the Budget sent shockwaves through the annuity industry.
The cap, which does not include transaction costs, was the lowest of several options considered by the government and only applies to the 'default' funds used for auto-enrolled staff.
Some UK savers pay much higher charges on their pensions than those in other countries and consumer groups had urged the government to act.

[scrapheap] 27/3/2014 21:51

RMJPB 27 Mar'14 - 18:46 - 97 of 97

As an IFA myself posting here in recent days, I read your post and thought it was me who'd wrote it!!!! I've lumped in to both PA and JRG thinking the market has just got this massively wrong and as I'm an IFA at the coalface / part of their pipeline then surely that gives me some insight. Glad to hear your views too.

I agree entirely and that's what I'm finding with my clients too - only the triviality option is making an immediate difference and I do think flex drawdown over the medium term to zero maturity for SOME but certainly not most clients will be the main difference. Otherwise enhanced annuities are still a must consider option.

Personally I think this will encourage younger people in their 40/50s to pay more in to pensions when they THINK they will want to take it all out at retirement but what they don't realise is many people at retirement are looking for a guaranteed income as they are nervous at not having the monthly payslip coming in....so they may well have a different view at that time.

[rmjpb] 27/3/2014 18:46

I have two clients in the process of buying an enhanced annuity.We have gone through the new options with regards to drawdown, and despite the coming flexibility, clients are still of the opinion that what felt right for them a few weeks ago is still right for them today.I cant help but feel there has been a massive overreaction to the budget - yes it was groundbreaking - and caused a shock reaction which is now overdone.What would have been far more radical if you want to offer real choice to retirees would have been to allow pensions to convert to ISA. Of course that could never happen as there would be no tax take. That would have been a brave chancellor.Instead we sit wondering if this was done to 1. Win voters2. Raise tax revenue3. Bouy the already top heavy housing market?4. All of the above

[rathlindri] 27/3/2014 10:25

I have an enhanced annuity with JRG and have found them an excellent company to deal with. IMO there is still a place for competitive annuities, but wtfdik

[scrapheap] 27/3/2014 09:44

Remarkable poll results on the JR IFA webinar - many IFAs don't think full withdrawal is advisable. The enhanced annuity pipeline isn't gone for those being advised it would seem from these early IFA views.

JR using feedback on these polls to respond to Govt consultation...

[scrapheap] 27/3/2014 09:04

A few chunky trades gone through today and not killed the price - imagine it might be schroders reducing their stake further after recent RNS, but who is the buyer? Hedgies at all like in Partnership?

[rathlindri] 26/3/2014 22:54

Some good posts here today

[scrapheap] 26/3/2014 19:12

Just had a house view email from Just Retirement which I can't pass on as for financial advisers only BUT basically saying they see a future for annuities and are most definitely not running up the white flag. I'm on a webinar they are doing tomorrow too for advisers so will be interested what more we learn.

I do think these companies need to be talking to shareholders, releasing more RNSs etc as well as rightly doing these comms with we advisers who are their pipeline for mch of their business.

[melody9999] 26/3/2014 18:12

Over -reaction certainly. I invested here today.

This cut from Hargreaves Lawnsdown Income Drawdown Guide explains why. It demonstrates what would have happened if someone had gone into drawdown just before the FTSE collapsed in 2007/8.

=======
The following example is fictitious, but all too possible. It is designed to
highlight the dangers of drawdown.

A man goes into income drawdown on his 65th birthday with a £250,000
pension fund and starts taking the maximum income he is allowed, annually
in arrears. In the first three years the market falls sharply by over 50% before
making a modest recovery for the next three years. The withdrawals prove a
massive drain on his fund and at the first three yearly review his maximum
income falls 54% from £17,400 to only £7,891 for the next three years.
By the end of year three his fund has fallen 61% to only £97,225 and would
have to more than double to regain his original capital, even if he takes no
further income. By the end of year four his capital has risen slightly, but by
now the damage has been done.

If he had bought the best annuity rate at outset he would have had a secure
£15,051 a year for life, with no worry and no on-going reviews. By the end of
year seven the income from the annuity would have totalled £105,357.
=====

I have been investing for 10 years now and am delighted with the budget news because of the freedom it gives me with my SIPP. But I still feel that at some point I will buy an annuity.....so I have put my money where my mouth is!

[bad robot] 26/3/2014 11:49

I am thinking of getting in

[scrapheap] 26/3/2014 08:49

The market begins to realise it's got the Budget implications wrong.....

[rmjpb] 23/3/2014 08:45

JR have been targetting the lower valued pension pots as these are the type of clients that are most likely to do equity release a few years from now. The eegit that can now withdraw their full pension fund, wont need too much convincing to consider equity release, thus opening up this market to jr sooner.

[alchemy30] 21/3/2014 16:58

Further Dir Buys reported this afternoon

[bad robot] 21/3/2014 14:43

Got out mate.


Took some more at 140p and then dump

[19th hole] 21/3/2014 13:36

You're brave Bad Robot.

Aviva, Pru, Friends Life and Royal London all have suspended further annuity business.

LV=, and Partnership have extended their cooling off periods for existing applications.

So a major shake-up - headless chickens spring to mind at the moment.

[bad robot] 21/3/2014 12:49

Could not resist back in.

Thanks Crafty MMS. The crew are back in 155p end of day

[bad robot] 21/3/2014 12:19

would be nice to get some again sub 140p

[scrapheap] 21/3/2014 09:23

it would be more lucrative obviously if they all went in to drawdown and we look at that for all clients but only the sophisticated clients are comfortable with the investment risk. Those who do we never advise taking max GAD unless there's a legit income recycling going on!

[bad robot] 21/3/2014 09:18

c'mon baby want 180p by monday morning

[19th hole] 21/3/2014 09:08

It's obviously a good market for you - so good luck with it. My last one fell out of the cooling off period just 10 days ago.

One last observation - I notice that the OMO Bureau that was being set up as a lead generator for IFA's has mysteriously decided that google adwords and price per click is too expensive to make the business viable and so is shutting it's doors. Interesting development just two days after the budget!