Arrangment fees

webnibbler

In an attempt to bring all my pension plans into one provider, I'm in the process of transferring the value of an older personal pension into my current Standard Life Personal Pension. For the arrangement of the 44k transfer Standard Life will charge over £1000.

This seems steep to me. Is this typical for such a transfer? Would a SIPP with an online provider with no setup or transfer fees be a cheaper option?

jem16

webnibbler wrote: »

This seems steep to me. Is this typical for such a transfer?

Did you use an IFA or not?

Would a SIPP with an online provider with no setup or transfer fees be a cheaper option?

I expect that depends on the ongoing amc for each.

dunstonh

For the arrangement of the 44k transfer Standard Life will charge over £1000.

Cost wise its about right. However, using Std Life to give advice is flawed.

Would a SIPP with an online provider with no setup or transfer fees be a cheaper option?

Potentially yes or no depending on contract terms.

webnibbler

Thanks for the reponses. The transfer is without advice from either an IFA or Standard Life. I did make sure there weren't any gurantees or benefits on my older pension plans, so felt confident enough to go ahead without it.

Think I'll go away and do some more research on the AMCs of different provider's products and see what that throws up.

jem16

webnibbler wrote: »

Think I'll go away and do some more research on the AMCs of different provider's products and see what that throws up.

The problem with going direct is that it is not necesarily the cheapest way to do things. Sometimes paying an IFA a fee and having a reduced amc can be better in the long run.

dunstonh

The transfer is without advice from either an IFA or Standard Life.

So, why are you paying an advice charge? Standard Life must be laughing their heads off with people paying more than they would via an advised service. They earn more and get none of the liability.