Repensioning. Increase your pensions return without any risk discussion area

dunstonh

Thanks Nick. Nice post.

I guess the second quote is why you see a number of providers being a bit wishy washy in their wording as to what is permitted or not.

Tsubi

My mother has just turned 60 and received her pension with quite a hefty tax on it, is it possible to help her get some of it back even though she has received it now, or so I believe....????

EdInvestor

Tsubi wrote:

My mother has just turned 60 and received her pension with quite a hefty tax on it, is it possible to help her get some of it back even though she has received it now, or so I believe....????

Normally on taking a pension at retirement, 25% of the fund comes as a tax free cash lump sum and the rest must supply an income, which is taxed.

tomny

Am aware of the problem of initial commision and have thought of repensioning. However am with Standard Life - stakeholder. Some questions - How vigorously do they resist? Could it be best to transfer out via a broker to a new provider to avoid the initial commison?

Fees? Those as a percentage means the charges obviously grow as your fund does. We all know they get large amounts of money over the years. When you start, 1% doesn't sound alot. But its every year for ever (well you know what I mean!). Good money for sending you a valuation once a year or whatever you get.

Does anyone know anything about a new type of pension, cannot remember what they are called, something like PIA - pension investment account, read about it recently in I think Chelsea Financial Services mag. An approved government scheme (where they contribute like Stakeholder). Fees are a flat-rate £35.00 a year. Your money is invested something like 40% bonds (for capital protection), 40% linked to a stock market index and 20% property. Sounded interesting - worth looking at? any ideas?

Thanks

BaldEagle36

:rolleyes:

Isn't the initial commission what we are after?

My IFA recently advised me to move my personal pension with Guardian Royal Exchange to a Norwich Union stakeholder pension.

At the end of the agreement that he asked me to sign it said that Norwich Union would pay him a sum that was almost 10% of what I was moving plus commission payments on top of that! This would all come out of my 'plan charges'. Presumably this 10% that the IFA would have received is the sum that Cavendish will put back into the transferred pension plus any future payments that the IFA would have received?

dunstonh

Isn't the initial commission what we are after?

You may be but you arent going to get it.

At the end of the agreement that he asked me to sign it said that Norwich Union would pay him a sum that was almost 10% of what I was moving plus commission payments on top of that!

If you are saying he is taking commission and fee then he is a greedy !!!!!! and you should sack him.

Presumably this 10% that the IFA would have received is the sum that Cavendish will put back into the transferred pension plus any future payments that the IFA would have received?

No. Commission is paid for out of annual managment charges. The provider pays a lump sum up front but takes around 10-15 years to get it back in charges. There is a clawback period so you wont find any "lump sum" benefit by using Cavendish.

NU are fine as providers go for pension products but you can do a lot better than a stakeholder. Perhaps the adviser is recommending that as there is no ongoing servicing being required. It certainly isnt the product you would recommend if a longer term relationship is required. Its a one hit wonder product sale.

jefferyp

Can an employer engage a finacial consultant to oversee your paension plan without your knowledge . Does this not breach the truck act

dunstonh

Can an employer engage a finacial consultant to oversee your paension plan without your knowledge .

Yes they can depending on the type of pension.

Spoon77

Hi
I've recently opened a Personal Pension with Scottish Widows. Foolishly, I was impressed that the IFA took commission from Scottish Widows, not fees from me, without putting two and two together and realising the commission ultimately came from me! Therefore, I've put it down to inexperiance and am now hoping to rectify the 'mistake' my repensioning.
Given that the pension is very new, I don't have any loyalty at risk as mentioned earlier in the thread. Therefore, is repensioning a viable course of action for me? Or is it only possible after the pension has been open for a certain amount of time?
Incidentally, I do think that IFAs should be a lot clearer about the fact that you would pay significantly less charges on a pension if you go direct rather than through an IFA. Of course you pay the charges in return for advice, and I'm sure that many people would still choose to pay in return for that advice. I just feel it wasn't apparent to me when I signed up. I know better for next time!

EdInvestor

Spoon77 wrote: »

Incidentally, I do think that IFAs should be a lot clearer about the fact that you would pay significantly less charges on a pension if you go direct rather than through an IFA.

Not so.You would pay the same.

To pay less you need to go through a discount broker which rebates the commission/charges, such as

www.h-l.co.uk or

www.cavendishonline.co.uk