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IFA Charges pre 2013
sjohnst4
Posts: 4 Newbie
Hi
I've had about 5 pensions from previous companies which I don't pay into and have had an IFA look at merging them into a single pension for me.
Approx fund value if £40k.
I'm just wondering about the charges and what I should expect to pay. The charges are as follows:
IFA Initial cost to transfer the funds:3% of total fund value (£1200)
Annual service costs: 0.35% of fund
Annual Investment Charges: 0.66 % of fund
Just wondering if this is a fair expectation of what I should be paying?
I know the rules change in Jan so need to agree to this asap if they are fair, so any advice would be appreciated.
Many Thanks
I've had about 5 pensions from previous companies which I don't pay into and have had an IFA look at merging them into a single pension for me.
Approx fund value if £40k.
I'm just wondering about the charges and what I should expect to pay. The charges are as follows:
IFA Initial cost to transfer the funds:3% of total fund value (£1200)
Annual service costs: 0.35% of fund
Annual Investment Charges: 0.66 % of fund
Just wondering if this is a fair expectation of what I should be paying?
I know the rules change in Jan so need to agree to this asap if they are fair, so any advice would be appreciated.
Many Thanks
0
Comments
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The annual charges look OK and given the total fund value a 3% initial charge doesn't look too bad.
The rule change in Jan may be to your benefit but it'd probably just result in the IFA changing how they get paid so you pay the same amount in a different way, for no net difference.0 -
Charges seem reasonable for a small fund value like that. The trend at the moment appears that IFA charges are increasing on small values but dropping on high values.
Also, any "new business" at this point is probably already being charged on RDR basis.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 -
RDR does not affect the amount you will pay to an IFA, it only enforces transparency (you need to be aware of the charges from the outset, which is also not new to many IFAs and their clients).0
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Thanks everyone for the replies. Now got peace of mind.
:beer:0
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