Sat Telegraph Your Money Pensions Article

Froggitt

Refers to "an annual management charge of just 0.15% on the best-value schemes".

Anyone know which these schemes are and how best to access them?

PS Happy for IFAs to PM me.

middlepuss

Froggitt wrote: »

Refers to "an annual management charge of just 0.15% on the best-value schemes".

Anyone know which these schemes are and how best to access them?

PS Happy for IFAs to PM me.

Haven't seen the article but 0.15% sounds too good to be true. Is that 0.15% on top of the charges of funds within the pension pot? Or maybe it's 0.15% of a pot that's invested directly in shares...?

Froggitt

Same sentence reads "charges on some....money purchase schemes....are as high as 1.5% of fund value each year".

Whole article is all about how we are being ripped of by charges bigtime when compared to the Dutchies, who get 50% higher pensions compared to us, due to the high charges that we suffer.

middlepuss

Froggitt wrote: »

Same sentence reads "charges on some....money purchase schemes....are as high as 1.5% of fund value each year".

Whole article is all about how we are being ripped of by charges bigtime when compared to the Dutchies, who get 50% higher pensions compared to us, due to the high charges that we suffer.

Sounds like a good article. Parts of the pensions industry have been very good at making people very wealthy in retirement. Trouble is those people have been the directors of insurance companies.

Froggitt

Mmmmmm. I want to move Mrs Frogs pension, so I approached by IFA as I had a good deal. Theyve changed their business model now, such that on top of any fund management fees, they now want a 0.5% annual fee for "active management" whatever that is. Needless to say we wont be signing up for that.

jem16

Froggitt wrote: »

Same sentence reads "charges on some....money purchase schemes....are as high as 1.5% of fund value each year".

Whole article is all about how we are being ripped of by charges bigtime when compared to the Dutchies, who get 50% higher pensions compared to us, due to the high charges that we suffer.

If it's the same article that has been discussed on here already, it was highly flawed as far as the comparison between Dutch pensions and ours.

https://forums.moneysavingexpert.com/discussion/2645481

jem16

Froggitt wrote: »

Mmmmmm. I want to move Mrs Frogs pension, so I approached by IFA as I had a good deal. Theyve changed their business model now, such that on top of any fund management fees, they now want a 0.5% annual fee for "active management" whatever that is. Needless to say we wont be signing up for that.

A lot of business modesl are changing in readiness for RDR post 2012. Previously the annual management charge of a fund was 1.5% which included the 0.5% trail commission payable to the IFA. The new model of charging sees all the charges listed separately so you can see who gets what. It may well be that the IFA is now charging under that structure so the amc is reduced to 1% and IFA charges 0.5%. Have you checked this out?

The 0.5% would be for servicing the pension - i.e. doing an annual review and making fund changes as necessary. Much better model that simply transact and forget.

Froggitt

Thanks jem. Not like the Telegraph to re-hash articles four months later is it? :huh::huh::huh:

Ive always worked with them by knowing the fund charges and any rebates, and paying them upfront. Not only is there now the active management charge (that I wouldnt want anyway), but the fund charges are also being quoted much higher than before.

jem16

Froggitt wrote: »

Ive always worked with them by knowing the fund charges and any rebates, and paying them upfront. Not only is there now the active management charge (that I wouldnt want anyway), but the fund charges are also being quoted much higher than before.

What were the charges and what are they quoting now?

Froggitt

A transfer into Scot Life used to be 0.2% (and I paid upfront charges that equated to about four years of trail commission). Now 0.9% for upto £25k. All plus the 0.5%.

dunstonh

You can get vanguard funds at 0.1%. However, most trackers, like the Blackrock Class D trackers and HSBC trackers are in the 0.2% range.

As already mentioned, the article is highly flawed as it compares a hypothetical UK annual charge which is 50% higher than the benchmark set in 2001. That included product, provider, advice and investment charges. The Dutch version only included only fund charges and used the lowest charge option possible. If it had compared like for like then the charges would have been near identical.