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    • Lily1
    • By Lily1 11th Oct 17, 9:24 AM
    • 163Posts
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    Lily1
    Thoughts on Standard Life
    • #1
    • 11th Oct 17, 9:24 AM
    Thoughts on Standard Life 11th Oct 17 at 9:24 AM
    The more we read the more confusing pensions become. Think we have found a reasonable firm to handle the pension transfer and now must decide who to place our pot with for the drawdown element. We are thinking about using Standard Life and wondered if anyone with more experience could point out any pros and cons? Any input would really be appreciated.
Page 1
    • xylophone
    • By xylophone 11th Oct 17, 9:44 AM
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    xylophone
    • #2
    • 11th Oct 17, 9:44 AM
    • #2
    • 11th Oct 17, 9:44 AM
    As you have obtained the advice of a Pension Transfer Specialist concerning the transfer out of the British Steel DB pension, surely you have also received advice concerning a new provider?
    • HappyHarry
    • By HappyHarry 11th Oct 17, 9:45 AM
    • 411 Posts
    • 485 Thanks
    HappyHarry
    • #3
    • 11th Oct 17, 9:45 AM
    • #3
    • 11th Oct 17, 9:45 AM
    The more we read the more confusing pensions become. Think we have found a reasonable firm to handle the pension transfer and now must decide who to place our pot with for the drawdown element. We are thinking about using Standard Life and wondered if anyone with more experience could point out any pros and cons? Any input would really be appreciated.
    Originally posted by Lily1
    Your adviser should give you suitable recommendations on where to invest your transferred pension, taking into account your personal circumstances. That is their key job. What has your adviser recommended?

    ** Edit - crossed with xylophone above.
    Last edited by HappyHarry; 11-10-2017 at 9:45 AM. Reason: Crossed
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • dunstonh
    • By dunstonh 11th Oct 17, 10:29 AM
    • 89,852 Posts
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    dunstonh
    • #4
    • 11th Oct 17, 10:29 AM
    • #4
    • 11th Oct 17, 10:29 AM
    We are thinking about using Standard Life
    Which one? Standard Life have 5 different types of pension available IIRC.

    wondered if anyone with more experience could point out any pros and cons?
    Not really possible without knowing which version you are looking at.

    However, as the others have said above, why are you doing this and not your adviser?
    • Lily1
    • By Lily1 11th Oct 17, 6:04 PM
    • 163 Posts
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    Lily1
    • #5
    • 11th Oct 17, 6:04 PM
    • #5
    • 11th Oct 17, 6:04 PM
    Possibly choosing Standard Life Active Retirement.
    • dunstonh
    • By dunstonh 11th Oct 17, 6:28 PM
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    dunstonh
    • #6
    • 11th Oct 17, 6:28 PM
    • #6
    • 11th Oct 17, 6:28 PM
    Possibly choosing Standard Life Active Retirement.
    Originally posted by Lily1
    Not one I would use but if you think its the best option then fair enough.

    Is this one you have found or is this what the adviser is recommending? Seems a strange choice for an adviser to recommend (unless they work for Standard Life).

    Its basic. Basic is not necessarily bad if you need something simple but there are better simple options and lower cost simple options.

    This version of a cash cow for Std Life to pick up people who dont know what they are doing and earning money off them. It will do the job and there is nothing wrong with it. But there are plenty of better options.

    Is this what you have looked up on the internet or is this what an adviser has recommended? (if adviser, is it an IFA or a rep of standard life)
    • Lily1
    • By Lily1 11th Oct 17, 7:30 PM
    • 163 Posts
    • 61 Thanks
    Lily1
    • #7
    • 11th Oct 17, 7:30 PM
    • #7
    • 11th Oct 17, 7:30 PM
    Just our research so far. One IFA suggested an investment portfolio, using A J Bell. Fees were over £6k annually. The initial transfer was £10k. Thought we could do some research ourselves but feel it is made more difficult to understand than necessary.
    • sandsy
    • By sandsy 11th Oct 17, 7:30 PM
    • 1,195 Posts
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    sandsy
    • #8
    • 11th Oct 17, 7:30 PM
    • #8
    • 11th Oct 17, 7:30 PM
    The more we read the more confusing pensions become. Think we have found a reasonable firm to handle the pension transfer and now must decide who to place our pot with for the drawdown element. We are thinking about using Standard Life and wondered if anyone with more experience could point out any pros and cons? Any input would really be appreciated.
    Originally posted by Lily1
    You should be advised which company to transfer to. And the transfer advice must take into account the details of the scheme and the investments you're being advised to go into, and the charges associated with all of that.
    • bigadaj
    • By bigadaj 12th Oct 17, 4:02 AM
    • 10,339 Posts
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    bigadaj
    • #9
    • 12th Oct 17, 4:02 AM
    • #9
    • 12th Oct 17, 4:02 AM
    Just our research so far. One IFA suggested an investment portfolio, using A J Bell. Fees were over £6k annually. The initial transfer was £10k. Thought we could do some research ourselves but feel it is made more difficult to understand than necessary.
    Originally posted by Lily1
    There's no reason why you can't transfer into the advisers recommended provider and subsequently transfer again at a later point, to soemthing which might be considered better and or lower cost.

    The numbers look large but you are talking about a relatively huge sum of money that you're transferring, whilst diy isn't difficult, then any errors on sums that large can make the fees look small.

    Ultimately it's your choice to move at the end of the day, not moving might be considered safer but potentially less lucrative.
    • xylophone
    • By xylophone 12th Oct 17, 10:38 AM
    • 23,143 Posts
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    xylophone
    You have actually found a Pension Transfer Specialist?
    • dunstonh
    • By dunstonh 12th Oct 17, 11:16 AM
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    • 55,457 Thanks
    dunstonh
    There's no reason why you can't transfer into the advisers recommended provider and subsequently transfer again at a later point, to soemthing which might be considered better and or lower cost.
    And the found standard life option is not lower cost than what the IFA can arrange.

    Another option is to give the IFA the instruction that you don't care about the investments and want a basic low cost option. Whilst FA's may restrict their choice, IFAs cannot. So, if the instruction is given by the client then the IFA has to follow it as long as its not bad advice. In that scenario, you would expect something like a PPP using insured funds at 0.4% or thereabouts.
    • IanSt
    • By IanSt 13th Oct 17, 10:11 AM
    • 80 Posts
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    IanSt
    In that scenario, you would expect something like a PPP using insured funds at 0.4% or thereabouts.
    Originally posted by dunstonh
    dunstonh, if I may ask on behalf of a friend of mine, would that only be available via an IFA? He is risk averse, so although I've told him that the chances of any investments needing fscs protection is extremely low he is wary of investing into platforms and funds that could be limited to £50000 protection.
    • dunstonh
    • By dunstonh 13th Oct 17, 11:05 AM
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    dunstonh
    dunstonh, if I may ask on behalf of a friend of mine, would that only be available via an IFA?
    The DIY market has mostly gone down the SIPP route. SIPPs have lower regulatory requirements (so lower cost for firms to operate). The DIY market is very cost focused. So, it was a no brainer for those firms.

    PPPs are mostly available via IFAs and FAs.
    • Malthusian
    • By Malthusian 13th Oct 17, 4:45 PM
    • 3,077 Posts
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    Malthusian
    The DIY market has mostly gone down the SIPP route. SIPPs have lower regulatory requirements (so lower cost for firms to operate). The DIY market is very cost focused. So, it was a no brainer for those firms.
    Originally posted by dunstonh
    I'm not sure the DIY market is that cost focused, given Hargreaves Lansdown is the biggest DIY platform in the country. And that many DIY investors pay more in costs than IFA clients even taking into account the IFA's advice charge. (I should clarify that I don't mean the DIY investors here on MSE, but DIY investors in general, who tend to end up with multi-manager or other active funds heavily promoted by the platform, often with a total cost of 1.25 - 1.5%.)

    I think it actually works like this: DIY investors are split into two categories. Either they don't care about SIPP v PP in which case the lower cost is free money for the provider. Or they associate SIPPs with freedom and flexibility, in which case it is an attraction to customers. DIY customers who know about and care about the difference in FSCS treatment are very rare.
    • IanSt
    • By IanSt 13th Oct 17, 4:46 PM
    • 80 Posts
    • 44 Thanks
    IanSt
    Dunstonh, many thanks for your kind reply.

    PPPs are mostly available via IFAs and FAs.
    Originally posted by dunstonh
    Given his reluctance to trust the £50,000 protection afforded to sipps I've previously suggested that he visit one - he's unwilling to do so, but it looks like I should try again.
    • Lily1
    • By Lily1 13th Oct 17, 9:08 PM
    • 163 Posts
    • 61 Thanks
    Lily1
    The original IFA's charges were 3% plus vat for the original investment, this was after £10k for the transfer. Ongoing fees were in the region of £7k per annum. He also wanted us to pay an annual amount to consult with him. We have found another one who will do the transfer for £4K, we would ideally prefer charges in the region of .50 to 1% annually. Hopefully when we meet the new IFA he will be able to show us more options.
    • dunstonh
    • By dunstonh 13th Oct 17, 10:08 PM
    • 89,852 Posts
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    dunstonh
    The original IFA's charges were 3% plus vat for the original investment,
    Was this an IFA? There is no VAT on advice that where a product is being bought.

    Ongoing fees were in the region of £7k per annum.
    Was that the bottom line or just the adviser cut?

    He also wanted us to pay an annual amount to consult with him
    If that was not included in the above, then it is worth noting that the £7kper annum is about the same as you would pay with Std Life.

    we would ideally prefer charges in the region of .50 to 1% annually.
    Platform charge, fund charge and adviser charge or just fund charge and platform charge?

    If the adviser puts you on a very basic option, that is achievable. You may be compromising your investment returns by far more than the charges. What is your priority - paying less or earning more?
    • Lily1
    • By Lily1 13th Oct 17, 10:58 PM
    • 163 Posts
    • 61 Thanks
    Lily1
    The fee was for using his investments. Not sure what platform charges mean,.feels like there is so much choice it's hard to know what to do. This all has to be sorted by 21December or the pension will go into the P P F. We are risk averse so if we could achieve a rate similar to inflation we would be happy.
    • dunstonh
    • By dunstonh 13th Oct 17, 11:30 PM
    • 89,852 Posts
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    dunstonh
    The fee was for using his investments.
    IFAs do not have their own investments. FAs do. Are you sure it was an IFA and not an FA?

    Check their status and on Monday, start firing questions at them.
    • Lily1
    • By Lily1 14th Oct 17, 12:19 AM
    • 163 Posts
    • 61 Thanks
    Lily1
    Thanks, think we have decided not to use him. He is described as a wealth manager. Obviously there is no point googling independent financial advisors!
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