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Lloyds teams up with life companies for annuity service

by Alex Steger on Dec 13, 2012 at 08:31

Lloyds teams up with life companies for annuity service

Lloyds Banking Group has launched an online annuity comparison service offering quotes from providers including Prudential, Aviva, Legal & General, Just Retirement and Partnership.

The Daily Telegraph reported that the service will compare quotes from 11 providers with the cost of the service met by commission paid by the annuity providers.

Simon Clark of Lloyds Banking Group told the paper: ‘As an annuity purchase is a one-off decision that you are locked in to for life, it’s really important to explore all the options before making a choice. Our new service is designed to make this process as easy as possible.

‘We do the legwork by searching our panel of annuity providers, including several household names, so people can secure a better retirement income – something that I’m sure will be welcome given the current squeeze on annuity rates.’

11 comments so far. Why not have your say?

Martin Smith

Dec 13, 2012 at 08:58

Another nail in the coffin.

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Ian O

Dec 13, 2012 at 09:17

Yet more people being encouraged to make important decisions without taking advice. Unfortunately this will be the legacy of RDR.

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CW IFA

Dec 13, 2012 at 09:24

They will most likely influence those with little or no knowledge of their options to purchase potentially inferior annuity products...what about drawdown? what about deferring annuity purchase full stop? Tip of the iceberg this. Many of the banks will find ways of 'selling/advising' on products to the exclusion of quality advice.

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Neil Mumford

Dec 13, 2012 at 10:04

"will compare quotes from 11 providers with the cost of the service met by commission paid by the annuity providers"

Correct me if I am wrong but I thoughT annuities also fell under RDR for adviser charging?

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Ian O

Dec 13, 2012 at 10:25

Neil, advised annuity sales fall under RDR but non advised do not. Therefore proper advisers will be at an even greater disadvantage against the non advised companies, many of whom will claim their services are free and that people can avoid adviser charging by using them. Shall we start a sweepstake on how long it takes the FSA/FCA/whatever they are called at the time to realise increases in non advised sales gves rise to people buying the wrong products?

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Kate Brookes

Dec 13, 2012 at 11:31

At retirement planning is more than just buying an annuity, and it is up to us to get the message out there. There have been people buying life cover from Tesco for years. Is it the best solution for them? Who knows, and neither will they until they come to make a claim.

I suppose it depends if you want to make decisions that will affect the rest of your life by sticking a pin in a list in the mistaken belief that it is 'free' or 'cheap'.

You can do your own divorce on-line now too apparently, but I don't see solicitors shedding any tears about it.

We need to keep the faith, and start to value ourselves and our service, and hopefully the rest will follow.

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phil castle via mobile

Dec 13, 2012 at 11:36

most ppi was non advised by the banks & look at the mess that ended up! they never learn.

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phil castle via mobile

Dec 13, 2012 at 11:39

how will the fsa monitor advice to use a non adviced route?what happens when simone phones mas (

no advice) buys direct & then it is found an annuity wasn,t suitable?

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Dave

Dec 13, 2012 at 15:49

This is actually quite a clever idea by Lloyds, people in the branch can direct clients to the website and the name lloyds will still mean a lot for an awful lot of people. Furthermore, I would be willing to bet that based on the potentially high volume of business that they can provide the panel of providers, that the annuity rates that they will be able to offer (even after a couple of % commission) will be broadly similar to what is available to the "adviser market".......So potentially not good for the IFA (although I suppose in the spirit of RDR, you could charge a client a fee and then direct them to buy from Lloyds if they had a better deal? Not sure who would have the liability then.

I would suggest that perhaps if most of the people who go to this service actually utilise their OMO rather than buy an annuity with the pension provider, they will probably benefit. Might there be a more beneficial route open to them? maybe, but if they don't get the optimal outcome, that's their own fault for not taking advice!

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Jonathan Kirby

Dec 13, 2012 at 16:16

So under RDR the FSA are happy for people to buy a product that pays a dodgy bank commission yet once bought CANNOT be changed and will be definition last the rest of their lives from 'guidance' on a website?

The mind boggles.

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Will Watling (Capita Financial Software)

Dec 13, 2012 at 19:05

Reinventing the wheel - whether it's a good thing to offer direct vs advised or not is a reasonable Q to debate, but ... why build something that already exists & can be white labelled by any IFA firm? Am I missing something?

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