What questions should I ask the Work Pension 'advisor'?

buel

Hi all,
This Wednesday I am being given the 'opportunity' to have a meeting with the Pension advisor that the majority of the workforce use where I work.

I know next to nothing about Pensions but I believe (not 100%) that his charges are 1.5% which I think im right in saying is to the higher end?
Anyway, im intrigued as to what he will offer/advise being as I've been warned that he isn't the most trustworthy of 'advisors', so what im asking anyone/everybody is please can you all give me some relevant questions to ask him about the proposed pension that he will undoubtedly offer.

I'm guessing questions like in what will it be invested in, his actual trail commission, what percentage he does actually take per annum, do my employers contribute etc, etc

As I said, I know next to nothing so please feel free to help me ask what questions I should ask to ascertain:
1, If the Pension he is offering is a good deal, and
2, If he is actually a decent Pension advisor as I am aware how easy it is for a group of people to decide that someone is 'untrustworthy'.

dunstonh

I know next to nothing about Pensions but I believe (not 100%) that his charges are 1.5% which I think im right in saying is to the higher end?

If they are "his" charges, then yes they are very high. 0.5% is typical for medium to large values. 1.0% is for smaller values.

However, if they are the total charges which include his cut as well as the provider and fund, then its at the right level. The most common AMC in the UK is 1.5%.

buel

Hi, thank you for that.
So please can i ask what questions i should ask?

buel

Hello? Can someone please help me with what questions to ask?

jem16

buel wrote: »

Hello? Can someone please help me with what questions to ask?

You mentioned most of the questions already. However to add;

1. What funds are available to choose from?
2. What is the annual management charge for each fund?

buel

Thank you for that.
I believe my employers also make a small contribution towards the pension that he offers the employees, please may i ask if there are any questions i should ask regarding this, apart from the obvious 'What percentage does the employer contribute'?

jem16

buel wrote: »

please may i ask if there are any questions i should ask regarding this, apart from the obvious 'What percentage does the employer contribute'?

I would just ask if there is a fixed contribution or if the employer matches what you put in and if so to what extent.

atush

jem16 wrote: »

I would just ask if there is a fixed contribution or if the employer matches what you put in and if so to what extent.

I agree, this is the most imp Q as well as charges.

How much will your employer contribute? This is called 'free money' here lol. How much will you need to contribute to get the max from your employer? Can you cantribute more than that and not have it 'matched'?

Getting the max from your emplyer is key, and usggest to not put in less than that.

Also be aware if you don't join now you can join later but might lose certain very imp bennies if you delay depending on the terms of your employer's scheme. These could include the very important Death in Service benefits which are an extra life insurance for your dependants/family.