Just Retirement Share Discussion Threads

[scrapheap] 21/3/2014 08:59

I have 2 in cooling off period, 7 in process (6 with GARs) and 4 enhanced CQFs sent off this week - so far all the clients want to still proceed and/or get their quotes collated before deciding whether or not to proceed...

1 has been cancelled as now can be taken as a lump sum under the higher triv rule from next week.

[19th hole] 21/3/2014 08:54

No, I'm not aware of that at the moment.

As I say product innovation will need to happen so it will be interesting how this market now evolves.

I'm just pleased I don't have an annuity purchase on my desk at the moment!!

[scrapheap] 21/3/2014 08:48

They are consulting on reducing the 55% tax rate on death in drawdown which would alter the decision on the 150% GAD oor not - I've not head in all this if the TFC needed by 75 provision will remain despite there being reports that tax relief for people paying in to a pension beyond that age is now being considered. Have you?

[scrapheap] 21/3/2014 08:43

I agree generally with that - but I see some form of ehnanced annuity remaining - perhaps PLA's will surge too - and the replacement of investment risk with a guaranteed income for life thus passing longevity risk over to the insurer as a corner stone for most clients.

Those with £30k or under will quite rightly take the lump sum. £50k or more, I'm not so sure, perhaps more likely they'll take a fixed term annuity with no
maturity value?

The Panmure Gordon analyst seems to think all those buying these enhanced annuities are the nearly dead but that's rubbish as you'll know.

[scrapheap] 21/3/2014 08:36

Also 19th hole, we will need to see what the FCA comes out on all these changes don't you think - given their views on drawdown vs annuities and how that's affected the regulatory risk for each historically not least for advisers?

Have you noticed all DC members are to receive advice (gawd knows how) but saying that is the case then whose neck might be on the line if a pensioner runs out of money, sees their income fall materially etc under capped drawdown for example?

[bad robot] 21/3/2014 08:30

This will booooom to 170p today

[knigel] 21/3/2014 08:25

Daily Mail artticle is interesting - seems like the Labour party is not happy but would they reverse these changes?

[scrapheap] 21/3/2014 08:23

You think instead of now and circa 10% of retirees there will suddenly be 90% going to be comfortable with investment risk for providing their monthly income?

I think fixed term annuities using flex drawdown to nil maturity may well increase but that's good news for these providers...

I agree on the innovation and am sure both providers will do exactly that.

[19th hole] 21/3/2014 08:10

My professional and personal view is that they largely are. I see little mileage in tying money up in a product that will pay, say 7%, and no capital return on a premature death when a similar level can be attained through a capped drawdown with the fund still available to dependents.

Anyway, JRG will have to product innovate so the future will be interesting.

[scrapheap] 21/3/2014 07:27

Enhanced annuities are not dead... far from it.. that's my professional and personal view..

[melody9999] 21/3/2014 00:18

If you are like me, and manage your own SIPP, then I guess you would be delighted in yesterday's news. On the other hand, if you let other people manage your pension pot, then you are probably wondering what all the fuss is about.

I think that if people are managing their own pension pots before retirement, they will now be comfortable enough to exercise their choice and not take an annuity - at least not immediately on retirement. It is these people (myself included) who will be the reason that the annuity market will reduce in size. But - in my view - there will still be a market for annuities....

[hawkhybrid] 20/3/2014 19:28

I would expect the rates to be like capital and interest loans
versus interest only loans. companies should still be able
to be competitive but may need to rejig their products a little.

where else would pensioners put their money if not at least
part in an annuity?

HH

[warranty] 20/3/2014 19:25

You see, even just on this thread populated by non professionals there are lots of ideas about what to do with your pension pot. Apart from a very few most people will still want to invest it prudently to ensure a steady income in retirement so I don't see any reason why much should change other than a generally better deal for the pensioner.

[euclid5] 20/3/2014 19:11

Pensioners can buy the Gilts / Govt6 Bonds themselves & still get the fxd income & funds back on mat dates - & when they pass away their spouse can get access to this after - but on enhanced Ann's the spouse does not get a payout upon her partner's death - so this is a huge negative for this type of industry

[bad robot] 20/3/2014 16:41

Thanks bud

Close 145.25p

[bad robot] 20/3/2014 15:39

yes mate from today's lows. Average about 138.5.

I am in only for the technical bounce

[rathlindri] 20/3/2014 15:32

Bad Robot, are you invested here?

[bad robot] 20/3/2014 15:17

MM you cannot stop the crew

[bad robot] 20/3/2014 15:13

Crafty mm :)

[bad robot] 20/3/2014 15:10

180p by monday

[bad robot] 20/3/2014 15:08

spike baby spike baby


The crew is loading up

[bad robot] 20/3/2014 15:07

BOOOM BOOOM 150p is coming