Reasonable fee for transferring pension plan?

Neverland

dunstonh wrote: »

Projections have always been the gross figure with the charges taken off afterwards. So, a 7% projection wasnt 7% net of charges but 7% gross of charges. The drag has always been disclosed and has been a key comparison tool for decades.

"From 6 April 2014 your pension statement will have to show the value of your fund and what it would be worth at your retirement date if it grows by 2%, 5% or 8% a year. The projection rates currently used are 5%, 7% and 9%.

Our new projection rate should give you a more realistic estimate of the likely value of your personal pension and help you plan the funding of your retirement."

http://www.fsa.gov.uk/consumerinformation/product_news/pensions/growth_rates.shtml

So a 1% fee to and IFA would be 20% of the projected real returns...fund management charges on top of course...

Aegis

Neverland wrote: »

"From 6 April 2014 your pension statement will have to show the value of your fund and what it would be worth at your retirement date if it grows by 2%, 5% or 8% a year. The projection rates currently used are 5%, 7% and 9%.

Our new projection rate should give you a more realistic estimate of the likely value of your personal pension and help you plan the funding of your retirement."

http://www.fsa.gov.uk/consumerinformation/product_news/pensions/growth_rates.shtml

So a 1% fee to and IFA would be 20% of the projected real returns...fund management charges on top of course...

If I genuinely thought that I could only get a client 5% a year on average before fees, I wouldn't invest on their behalf.

5% before fees is far lower than the average I've seen for a well-managed portfolio.

This is hardly the first time the FSA has done something pretty baffling.