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IFA Charges
gennyop
Posts: 1 Newbie
Hello to all
My first post -so here goes
Visited a local IFA with a view to purchasing an annuity with my various small pensions detailed below :-
Equitable Life £3082
Equitable Life £8066 protected rights
Scottish Widows £12617
Guardian Financial Services £ 238
Total £24005
I am 61 years old with a life impaired condition ( COPD ) .I wanted 25% cash and a single annuity
The IFA said that this would be a lot of work and would need the commission plus £ 400 to do the work
Could anyone tell me if they think these charges are reasonable ?
Many thanks
My first post -so here goes
Visited a local IFA with a view to purchasing an annuity with my various small pensions detailed below :-
Equitable Life £3082
Equitable Life £8066 protected rights
Scottish Widows £12617
Guardian Financial Services £ 238
Total £24005
I am 61 years old with a life impaired condition ( COPD ) .I wanted 25% cash and a single annuity
The IFA said that this would be a lot of work and would need the commission plus £ 400 to do the work
Could anyone tell me if they think these charges are reasonable ?
Many thanks
0
Comments
-
What was the commission?
If you take the typical 1-1.5% then the commission would be around £180-£270. So, a charge of £400 on top seems reasonable. Ask if the adviser can take it via the provider. A lot of the enhanced/impaired providers will allow fee to come from the product upto a cap of 5%. A couple allow that cap to be broken on small values where a £500 fee can be taken.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Hi
Providing the "lot of work" isn't just making his file look right for his compliance department (which of course he has to do) then it sounds reasonable.
I would expect an IFA to do the following for that fee:
1. Outline any other retirement income options you might be able to use, although with those fund sizes an annuity is likely to be the only options
2. Discuss with you the pros and cons of including the various options
3. Discover whether you qualify for an Enhanced Annuity, it sounds as though you do
4. Shop around amongst all the applicable annuity providers to get you the best rate / enhancement
5. Complete the paperwork and get it completed in a timely manner
If he is doing all that for circa £600 - £700 I would suggest you are getting value for money.
The Canny SaverAlways looking for a good deal on my savings, generally risk averse, but always interested in new ideas and new ways of doing things.0 -
I agree, from the 2 above projections that fee sounds fair.0
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