Looking for some advice
Bramhopewarrior
Posts: 5 Newbie
Hi came accross this board by chance and would appreciate any thoughts and feedback as to whether we are right to have gone with SJP.
My wife and I have recently committed to a pension with SJP after our father in law moved his sizeable pot to them from an IFA and he encouraged us to speak with them. What are peoples general thoughts on them?
My wife and I have recently committed to a pension with SJP after our father in law moved his sizeable pot to them from an IFA and he encouraged us to speak with them. What are peoples general thoughts on them?
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Comments
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My wife and I have recently committed to a pension with SJP after our father in law moved his sizeable pot to them from an IFA and he encouraged us to speak with them. What are peoples general thoughts on them?
SJP are one of the most expensive distribution channels going. Very slick in presentation but most IFAs love coming across SJP clients as they can save tens of or even hundreds of thousands of pounds by moving to an IFA. My record saving on charges is by moving an SJP client and was saved them over £300,000 in the effect of charges.
SJP produces are charged at 1980s style levels with tie in charges that do not exist anywhere else in the market place.
Moving from an SJP sales rep sold contract to an IFA is very common.
Moving from an IFA to SJP on the other hand suggests someone of low knowledge with investments and products who should be looking to use an IFA. Not an SJP sales rep. Perhaps someone who is easily sold to by a flash salesperson with slick material (compared to the IFA whose material is likely printed on their office printer and looks low quality by comparison. Many IFAs are more technical in nature and lack the slick sales skills that are needed when you work for SJP)
To put those charge in context, if this "sizeable pot" was say £500,000, then an IFA would typically be around £1000-£2500 range with perhaps greedy ones being £5000. SJP's charge is £32,500 on that amount. And thats just the initial charge. Their ongoing charges are higher as well. Add those up over 10-20-30-40 years and you are running into hundreds of thousands of pounds of higher charges.
You are not committed to moving anything until it is moved and even then, you have cancellation rights for a period.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
If you really want to get involved with SJP it might be better to buy shares in them rather than buy investments through them.0
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jamesperrett wrote: »If you really want to get involved with SJP it might be better to buy shares in them rather than buy investments through them.
I realise this is tongue-in-cheek, but even a horrendously expensive portfolio with St James Place would be better than buying shares in an individual company, which could go tits-up and lose all of your money. (Just because you make lots of money off clients doesn't mean you'll always be profitable. No matter how large or consistent your income, you can always be sunk by expenditure or debt.)0 -
This is factually incorrect, in fact with SJP there would be an allocation rate of 100% and thus no money deducted at the front end. There would however be a 6% exit penalty in year 1 reducing to 1% in year 6, 0% thereafter.
The ongoing charges would be higher than some at around 2% a year, although that includes cost of advice and product.0 -
Hi all,
I'm a little worried about my current pension (very worried if I'm honest).
Some of you may have heard the issues with the British Steel Pension Scheme and how it's been closed and a newer pension scheme designed (BSPS2).
Now my Cash Equivalent Transfer Value is £600K and I have approximately 15 yrs left before I'm 60 (I would 'like' to take early retirement at this point).
I've had advice from different advisors, some saying it's best to transfer to the BSPS2 for the obvious security reasons this brings, others have said they see a potential for growth and I'd be best transferring out.
One of these is SJP and as said above, the fees seem pretty much in line with others I have enquired with - around 2% ongoing charge and a 6% transfer out fee if I decide it's not for me and leave in the first 5 - 6 yrs.
This is a very worrying time as I have a deadline which the transfer has to be submitted by and only SJP seem confident it will be done in time. If my pension goes into BSPS2 then I'm in it for the long term, as CETV's will reduce by about 20%.
I feel I'm being forced to make an uneducated decision due top the deadlines and lack of clarity / advice from the BSPS. Now I'm doing my research into SJP, this has made me even more worried as the returns are reportedly a lot lower then others.
I know people aren't able to advise on my own circumstances on here, but the amount of negative comments on SJP is alarming me.0 -
The ongoing charges would be higher than some at around 2% a year, although that includes cost of advice and product.
That's an intolerable charge: there would be every chance that SJP would be taking more of a portfolio's income than the owners would.Free the dunston one next time too.0 -
One of these is SJP and as said above, the fees seem pretty much in line with others I have enquired with - around 2% ongoing charge and a 6% transfer out fee if I decide it's not for me and leave in the first 5 - 6 yrs.
First of all, no-one else has exit charges. SJP does not act in the spirit of the retail distribution review. They get away with it by making it a product charge. No other product provider has it.
Most IFAs will be much cheaper than SJP. You will always get greedy ones but it shouldnt be difficult to find ones that are much better value for money.and only SJP seem confident it will be done in time.
SJP is a salesforce. Their methods are no faster or slower than anyone else. Salespeople will often tell you what you want to hear to get the sale.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Worried_investor wrote: »I've had advice from different advisors, some saying it's best to transfer to the BSPS2 for the obvious security reasons this brings, others have said they see a potential for growth and I'd be best transferring out.
In itself that is a crap reason for transferring out.
How much will you need to live on in retirement? Is it less than State Pension plus any other guaranteed pension income you have in place already, not including BSPS?One of these is SJP and as said above, the fees seem pretty much in line with others I have enquired with - around 2% ongoing charge and a 6% transfer out fee if I decide it's not for me and leave in the first 5 - 6 yrs.
As others have said this is extremely expensive. If you've seen several advisers then I'd be very surprised if they are all quoting an all-in fee of 2%. 1-1.5% is more reasonable for the all-in fee.This is a very worrying time as I have a deadline which the transfer has to be submitted by and only SJP seem confident it will be done in time.
Sales patter. SJP are no more efficient than any other adviser - if anything the opposite.0 -
Thanks for the above replies - I appreciate the honest feedback.
A couple of the reasons for exploring the transfer out, is because I have the flexibility to drawdown when I want, at a level I want and any unspent monies will go to my spouse and then to my daughter.
I have no idea how much I will need when I come to retire. All I can say is I won't have a mortgage, this will be paid off.
As for fees, the 3 advisors (including SJP) that have given me fee details were as follows.
1% + management charges
2.2% including MC's
1.9-2.2% including MC's and dependant what portfolios I choose.
One of these has told me it's in my best interests not to transfer. One has told me they wouldn't get it done before my deadline - which leaves SJP whop say they will. They would be my last hope should I choose that route but I don't want to feel like it's the be all and end all, particularly if staying in the BSPS2 is actually a better bet.
Regarding the exit charges - they don't charge and implementation fee like the others do (circa £7K) and the exit fee is only applicable if I chose to transfer out within 6 yrs.
Like I've said, I don't have time to now seek other IFA's - the BSPS totally cocked my transfer schedule up and aren't willing to extend this.0 -
Regarding the exit charges - they don't charge and implementation fee like the others do (circa £7K) and the exit fee is only applicable if I chose to transfer out within 6 yrs.
Yes they do. They just hide it with smoke and mirrors.
All three seems expensive.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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