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    • Antscran
    • By Antscran 5th Dec 17, 12:21 AM
    • 6Posts
    • 0Thanks
    Antscran
    Final Salary to SIPP general advice
    • #1
    • 5th Dec 17, 12:21 AM
    Final Salary to SIPP general advice 5th Dec 17 at 12:21 AM
    Hi All,

    I am considering moving my final salary pending to a SIPP and have received a CETV of £69k, I am British but currently living in Denmark and have been here for 5 years. I was originally approached (cold call) about moving and have received details form this provider, but have also sort independent advice as well and currently carrying out further research. The independent provide has given me a Critical Yield, Hurdle Rate and Drawdown Income information as well as a proposed pension scheme plan.

    I have a question regarding expected fees and what would constitute high fees and normal charges.

    - The cold call has quoted me around about 2.95% per annum, decreasing to about 1.8% after 10 years. This includes a £900 admin fee per annum, Generali portfolio bond charge of 1% per annum and Advisory fee of 0.85% per annum.

    - Independent advice is a one off 5% charge and then an annual management charge of 1%. There may be some other charges as this is just an assessment at this stage and guess depends on where the money is invested.

    I am also looking at Hargreaves and Lansdown as an option, as found these mentioned on another post in this forum. I would like to be more involved and although being relatively new to most of the financial terminology, am quite happy to read up and digest the information so a more informed decision can be made.

    Best regards,

    Ant
    Last edited by Antscran; 05-12-2017 at 12:28 AM.
Page 1
    • mgdavid
    • By mgdavid 5th Dec 17, 2:17 AM
    • 5,278 Posts
    • 4,464 Thanks
    mgdavid
    • #2
    • 5th Dec 17, 2:17 AM
    • #2
    • 5th Dec 17, 2:17 AM
    Be aware that there is a simple Golden Rule with pension companies.
    Any company that cold calls you is a scammer.
    As you don't live in the UK you may not have read about the problem of cold call companies escalating due to the pension freedoms of the past few years. It's got so bad the government are considering ways of banning cold calls altogether and making it a criminal offence.
    A salary slave no more.....
    • Antscran
    • By Antscran 5th Dec 17, 3:09 AM
    • 6 Posts
    • 0 Thanks
    Antscran
    • #3
    • 5th Dec 17, 3:09 AM
    • #3
    • 5th Dec 17, 3:09 AM
    Agreed, hence why I am seeking further advice, didn't realize it was such an issue in the UK. I did actually receive other cold calls but didn't follow-up and thought I would just find out what the implications were in this case.
    • dunstonh
    • By dunstonh 5th Dec 17, 10:28 AM
    • 89,873 Posts
    • 56,545 Thanks
    dunstonh
    • #4
    • 5th Dec 17, 10:28 AM
    • #4
    • 5th Dec 17, 10:28 AM
    I was originally approached (cold call) about moving and have received details form this provider,
    Pension providers in the UK do not cold call. Professional advisers do not cold call either. Only scammers cold call. So, you should be on guard. Cold calling is in the process of being banned in respect of pensions. However, as no genuine regulated financial services company will cold call anyway, its a good basis to treat all cold calls as scams. And that pretty much goes for any cold call on any subject you get.

    - The cold call has quoted me around about 2.95% per annum, decreasing to about 1.8% after 10 years. This includes a £900 admin fee per annum, Generali portfolio bond charge of 1% per annum and Advisory fee of 0.85% per annum.
    That would not be allowed in the UK. Pricing is explicit here and cannot factor in costs of distribution. There are a few that push that rule by using loopholes but not even those do that.

    What that pricing you have been quoted is doing is charging you over 10% initial charge but spreading it over 10 years. Absolutely crazy charges.

    With a small fund of £69k, you would expect a transactional advice simple product/investment option. Total cost of around 0.40% p.a. Initial charge in the £2k to £3k mark.

    I am also looking at Hargreaves and Lansdown as an option, as found these mentioned on another post in this forum.
    I don't think HL have passporting permissions. I am sure someone who can verify that will be along to say whether that is correct or not. Unless you can come back to the UK in person to transact, you will need a firm that has passporting permissions. That is going to severely limit your options if you can't. Typically, the firms that deal with ex pats directly are awful. Their pricing is more in line with the 1980s and the quality of product is not far behind.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • cloud_dog
    • By cloud_dog 5th Dec 17, 10:48 AM
    • 3,304 Posts
    • 1,864 Thanks
    cloud_dog
    • #5
    • 5th Dec 17, 10:48 AM
    • #5
    • 5th Dec 17, 10:48 AM
    Agreed, hence why I am seeking further advice, didn't realize it was such an issue in the UK. I did actually receive other cold calls but didn't follow-up and thought I would just find out what the implications were in this case.
    Originally posted by Antscran
    Are you blinded by the the pretty pretty £69K?

    Ignoring that it is £69k, do you want to move it? If so, why? What are your reasons? What else do you have in place? What would this pension provide at NRA?

    Reasons to ignore:
    1. You were cold called
    2. You were cold called
    3. You were cold called
    4. Did you see those charges
    5. You included the word 'Generali'
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • maximumgardener
    • By maximumgardener 5th Dec 17, 11:02 AM
    • 259 Posts
    • 109 Thanks
    maximumgardener
    • #6
    • 5th Dec 17, 11:02 AM
    • #6
    • 5th Dec 17, 11:02 AM
    to OP ......don't get scammed ! what you describe sounds a non starter

    you may also consider leaving your DB Pension alone and starting a separate personal pension . put in what you can afford ? perhaps you have time on your side?

    how old are you?
    • Bravepants
    • By Bravepants 5th Dec 17, 3:23 PM
    • 274 Posts
    • 321 Thanks
    Bravepants
    • #7
    • 5th Dec 17, 3:23 PM
    • #7
    • 5th Dec 17, 3:23 PM
    Leave your final salary where it is. Start your own SIPP if you want with whatever you can put away each month, perhaps a fund of passive index funds with a mix of bonds and equities. Look for annual charges less than 1% (closer to 0.5%) per year for passive funds.
    • TBC15
    • By TBC15 5th Dec 17, 5:26 PM
    • 263 Posts
    • 87 Thanks
    TBC15
    • #8
    • 5th Dec 17, 5:26 PM
    • #8
    • 5th Dec 17, 5:26 PM
    The people who cold called you are worthy of scrutinisation IMHO but I'm no expert.
    Last edited by TBC15; 05-12-2017 at 5:41 PM. Reason: Removal of words scum and thieves
    • Antscran
    • By Antscran 5th Dec 17, 8:52 PM
    • 6 Posts
    • 0 Thanks
    Antscran
    • #9
    • 5th Dec 17, 8:52 PM
    • #9
    • 5th Dec 17, 8:52 PM
    What that pricing you have been quoted is doing is charging you over 10% initial charge but spreading it over 10 years. Absolutely crazy charges.

    With a small fund of £69k, you would expect a transactional advice simple product/investment option. Total cost of around 0.40% p.a. Initial charge in the £2k to £3k mark.

    I don't think HL have passporting permissions.
    Originally posted by dunstonh
    Thanks for these points very useful and just needed some clarification on my concerns, I intend to call HL as they mentioned final salary pensions and say give them a call.
    • Antscran
    • By Antscran 5th Dec 17, 9:02 PM
    • 6 Posts
    • 0 Thanks
    Antscran
    Are you blinded by the the pretty pretty £69K?

    Ignoring that it is £69k, do you want to move it? If so, why? What are your reasons? What else do you have in place? What would this pension provide at NRA?[/LIST]
    Originally posted by cloud_dog
    Nope not blinded I hadn't looked at my pension for 15 odd years and thought it was about time, so this was a means to an end which I have always had control over.

    Possible reasons for moving so I can have more control over the money and maximize the gains, assuming there is any to be had (still under investigation).
    I am 43 and have a flat I rent out as well, some savings etc but that's it.
    The NRA is just over £2k
    Last edited by Antscran; 05-12-2017 at 9:16 PM.
    • Antscran
    • By Antscran 5th Dec 17, 9:04 PM
    • 6 Posts
    • 0 Thanks
    Antscran
    Leave your final salary where it is. Start your own SIPP if you want with whatever you can put away each month, perhaps a fund of passive index funds with a mix of bonds and equities. Look for annual charges less than 1% (closer to 0.5%) per year for passive funds.
    Originally posted by Bravepants
    This is an option I did not consider so will definitely look at this as well. However, as I am currently residing in Denmark is this even possible?
    • Antscran
    • By Antscran 5th Dec 17, 9:09 PM
    • 6 Posts
    • 0 Thanks
    Antscran
    to OP ......don't get scammed ! what you describe sounds a non starter

    you may also consider leaving your DB Pension alone and starting a separate personal pension . put in what you can afford ? perhaps you have time on your side?

    how old are you?
    Originally posted by maximumgardener
    Definitely an option, not sure if I can open a UK pension as currently residing in Denmark? Charges in Denmark are quite expensive, although employee schemes are very good typically 12% contributions from employer and 6% from employee, but I have seen 18% contributions from employers.

    43
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