There are currently only three main players in the annuity market in Ireland. Irish Life, New Ireland and Zurich Life are the only companies that are actively competing for annuity business.
You may get a quote from Friends First, Standard Life or Canada Life and it may be worth bearing in mind that sometimes they might be competitive with their rates.
For the purpose of this post, I am limiting it to the three that are currently interested in doing business.
The maximum commission that can be paid to an advisor by Irish Life is 2% of the purchase price. New Ireland is 3% and Zurich Life is 2.5%.
Zurich Life €6,792.48 pa
New Ireland €6,774.60 pa
Irish Life €6,680.70 pa
Even though the commission rate on the Zurich & New Ireland annuities is assumed at 2.5% for the quote above, they are currently quoting higher rates than Irish Life with a max commission of 2%.
Buying the annuity directly from the pension provider will incur a commission charge. This will more than likely be 2%.
If you decided to buy the annuity on an ‘execution only’ basis (no advice) via a broker you could negotiate a lower commission or pay a fee to execute the transaction.
For the ‘execution only’ service available at www.PensionAnnuity.ie the annuity payable per annum would be €6,938.52
Quote based on the following customer details:
Male 15/03/1947, Female 15/03/1952, €150,000, Guarantee period 5 years, Level annuity, Reversion rate 66.67%, Payable monthly in advance
Friday, March 23, 2012
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