Pension switching initial charges

GhIFA

Agree Mania.

jotpilot

Thanks again all for the thoughts.

Done more pension research, spoke to another IFA. Not a single person says 8.5% is not outrageous. I have a few days to make the final decision on whether to revert the pot to SL (who will take it back, I checked). Of course then I basically have to go through this whole process again and try to find an IFA I am happy with - not a pleasant thought.

Sent an email to the IFA basically saying halve your fee or I will transfer it back. He caved immediately and agreed. I'm not entirely sure what this means - either he was trying it on (and therefore not to be trusted), or simply wants to retain my business.

I am pretty stressed about this decision; any more words of wisdom from you kind people?

Thanks

claretmatt

I agree with the others that 8.5% is outrageous.

Looks like you are moving from being totally ripped off to being half ripped off. Although he agreed I wouldn't trust him to actually reduce his fee.

It might be a pain but I would look for alternative advice, which will probably be cheaper and better quality.

GhIFA

I agree with what ClaretMatt says.

dunstonh

Sent an email to the IFA basically saying halve your fee or I will transfer it back. He caved immediately and agreed. I'm not entirely sure what this means - either he was trying it on (and therefore not to be trusted), or simply wants to retain my business.

He can justify the fee of 8.5% if the pot comes in cheaper. He hasnt done anything wrong. It is just greedy. With all the work done at this stage, giving him a choice of cancellation rights and no fee vs half the fee then he would logically take half the fee.

Going with another would be desirable as you dont really have a future with this IFA. The relationship is soured before it really starts.

With the RDR (due in just over a weeks time) this could not happen as you would sign a fee agreement making it very obvious what the fee is. I still wonder if this IFA will still be trading then and hasnt instead just gone for a last gasp commission grab knowing he wont be around in future.

jotpilot

Pension is being returned to SL.

Thanks to all who took the time to reply here, your advice is much appreciated.

phil.s_3

We charge 3% of the fund value. That does seem very high.

I think this will be happening more and more over the next few years with the new changes on commission

jotpilot

It all worked out in the end - everything now with HL. I find it liberating (and quite enjoyable) deciding myself what to invest my pension in. I have been put off IFA's for life I fear...

Anyway, thanks again to all who pointed me in the right direction.

MOUNTY

mania112 wrote: »

No, that's ridiculously high.

anywhere between 0% - 5% is about acceptable, but you'd normally have no trouble finding a quality IFA who would do it for 3%

Just done my transfer, IFA charge only 2% as i would manage it myself.;)

dunstonh

I have been put off IFA's for life I fear...

Blimey. I wonder how you survive with that attitude. Don't get food poisoning. You wont live long never eating again.