Self employed client has recently organised an annuity from his 65th birthday in June. He has just supplied me with the correspondence along with his annual records. Some two-thirds of his total fund was subject to a 'Guaranteed Annuity Rate'.
He had contributed to X Insurancoe co for over 30 years but they no longer do annuities. He was advised that if he purchased the annuity from Y the guaranteed rate would be honoured. He did so.
X gave him an estimate of his (single life) annuity in March this year assuming he took the 25% tax free lump sum with a 5 year minimum period.
In the event the total fund was slightly higher than was projected in March. He took the 25% lump sum but he did not opt for a minimum period. And yet the actual annuity from Y is some 15% less than the March projection by X
I realise annuity rates move and that times are unusual. But a good chunk of the fund was subject to a 'guarantee'.
Would you take up the matter and, if so, with X or Y?