Pensionlite

Tightlines

I have been approached by Pensionlite, Chartered FA's, to help with reviewing my pension arrangements, but when researching them on the internet I cannot find out much about their background. Does anyone know of them or used them in the past? I am looking to gain advice on whether I should combine and transfer my 3 frozen pensions, or simply keep the status quo of minimal annual bonuses through the existing arrangements. I wondered if anyone had experienced Pensionlite's services in the past.

dunstonh

when researching them on the internet I cannot find out much about their background.

Most IFAs are small local firms who will have no presence on the internet. It is still very much a cottage industry. According to the FSA register they have been going for just over 4 years (although some of their advisers have a shorter history whilst others go back much longer with other firms)

I am looking to gain advice on whether I should combine and transfer my 3 frozen pensions, or simply keep the status quo of minimal annual bonuses through the existing arrangements.

So, seeking advice is what you should be doing then if you cannot do this yourself.

I have been approached by Pensionlite

Why have they approached you? Most decent firms do not cold call and in some areas it is not actually allowed. General rule of thumb is never to use a company that contacts you. If it is something you want to look at then you approach a company.

I wondered if anyone had experienced Pensionlite's services in the past.

I doubt they are doing anything different than any other local IFA. The processes are pretty much defined across the board. There is nothing to suggest they are good, bad or ugly. Just as you would expect with the vast majority of IFAs.

Loughton_Monkey

Your mention of "frozen" pensions [a term that has no real meaning, although usually implies one to which you are not contributing], and also to "bonuses" implies to me that you may be talking about schemes that could be either 'Final Salary', or possibly older pensions with some form of guaranteed annuity rates.

These always require above-average care. It's impossible for anyone here to tell. As a very general rule, you leave Final Salary Schemes alone, and just take them at the 'Normal Retirement Date' - looking very carefully as to whether or not to take the lump sum. When guaranteed annuity rates apply, then these companies [very sadly] seem to try and sell the 'Open Market Option' very loudly, when your best plan is simply to take the whole lot as pension using the guaranteed rates.

Money Purchase schemes are far simpler. Typically, you just combine all the pots together and then shop around for the best annuity rate you can get. If the pot is large enough, an IFA will do this for 'free' [actually on a commission basis, with no skin off your nose].

Although reasonably local to me, I have no knowledge whatsoever of Pensionlite, but I note that they are IFA's [good] and offer "Free, Unbiased, Independent, No Obligation Pension Advice". I don't see how they can do you any harm, but listen carefully to what they say.

dunstonh

and offer "Free, Unbiased, Independent, No Obligation Pension Advice". I don't see how they can do you any harm, but listen carefully to what they say.

Does it really say that on their website? How did that get that through their compliance? (or perhaps they do their own compliance)

Loughton_Monkey

dunstonh wrote: »

Does it really say that on their website? How did that get that through their compliance? (or perhaps they do their own compliance)

That's what it says!

I expect "Free advice" probably boils down to "My advice is that you need more advice, which will cost you."

I perceive it a bit like the "Free Virus Checker" that was bundled with an external hard drive I bought a while ago. What it does (for free) is to scan your entire system and detect that you don't have antivirus software. Pressing the 'fix' button takes you to McAfee's website where, believe it or not, you can buy some antivirus software!

dunstonh

I just took a look and I personally think the site is uncompliant. (which can often be an interpretation of guidelines and FSA guidelines are very open to interpretation to allow the FSA to change its mind on a whim. Another person could disagree)

For example, the site says in bold:
"Free advice and recommendations in writing by post or e mail"

So, in that case, they do the factfind, research and give the advice and recommendation in writing and then you go to Cavendish instead and buy the product there. If the advice turned out to be wrong you could still complain to the company even though you didnt buy the product through them as it is the advice that is regulated and gives the consumer protection. Not the fact you transacted via them.

The service an adviser provides is advice. So, if you are not charging for it, where are you making your money? Implementation of the advice is the cheapest part of the process. So, if they are only charging for implementation then they cant be charging much (Cavendish is about £35 for that)

Tightlines

Thank you both for your input and feedback. It's given me food for thought. Much appreciated.

wallpaperman

I work in customer service for a fairly big Pensions company and see a fair number of letters of authority coming in from Pensionlite for clients. They ask the standard questions that most IFA's ask when they get an authority from a client for the first time. No idea of the quality of what they offer, but they're certainly known from our point of view.

Awful name though.