TRANSACT - Pension

jamesd

Then the IFA is taking at least 1.8% of the amount invested and perhaps 1% of the total value each year, depending on just what the numbers include.

Ask about doing it on fee basis with no initial payment or ongoing annual payments. Assuming that you don't need their help to pick investments, if you do, you'd have to pay for that in some way. Fee basis is usually cheaper for those with significant pension pot sizes.

There are alternatives like Skandia that can be cheaper than Transact and the 1.3% you're paying now. Partly that depends on how much of that 1.3% is commission, if any.

There's no limit on how many pension plans you can have so it's possible to do things like transferring the current work pot into a place with more options and lower costs while continuing to pay into the group pension.

jem16

FineBoneChina wrote: »

For Transact, he said the initial setup charge would be 2%, and then the subsequent annual management charge would be 2%. Both as a percentage of the total fund invested.

What is the size of the pension fund at the moment?

As james says there are other options such as personal pensions that are available that can give you the greater investment choice as far as funds are concerned but perhaps be cheaper than Transact.

FineBoneChina_2

Sorry, it's very hectic at work today, and so haven't replied

The pension fund is currently standing at just over £122,000 (it was at just under £130,000 but with the recent global downturn it has gone down).

It's probably not a lot compared to many other people, but I'm pretty happy that it has been built up quite well. That is why I'm querying as to whether I should just stick where I am now, rather than take unnecessary risk.

jamesd

That's worth doing something about. Without ongoing advice you should be able to pay a flat fee of a few hundred Pounds to an IFA on execution only terms to set you up with say a Skandia account with 1% instead of 1.3% ongoing charging and transfer the money to that. No need to take any additional risk if you just want to use the same funds, it's up to you. The fee is to avoid initial and the ongoing trail commission, better to pay up front than 0.3% - £366 a year - that you're avoidably paying.