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Opt in to RDR and save?
SallyG
Posts: 850 Forumite
If the local sales rep of your pension provider rang you to tell you that you can lower your overall charges for the same pension fund you're in now by transferring/opting in to their new RDR regime with up front fees because by doing so even with the new fees you would be charged less overall [ how ? - no details without face to face risk assessment] .....would you laugh in his face or agree to meet ?
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I'd say no, if he's the rep of the pension provider you're only going to get restricted advice.I am an IFA. Any comments made on this forum are provided for information only and should not be construed as advice. Should you need advice on a specific area then please consult a local IFA.0
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If a rep of a provider can get cheaper than an IFA should be able to get cheaper still. Schemes have been getting cheaper over the years. So, the concept is valid. You just shouldnt use the rep.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
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because by doing so even with the new fees you would be charged less overall
Less overall over what period of time? Only if you hold the contract until your planned retirement date? But probably not if you wanted to move the funds earlier.
With any new tariff, you need to decide if the increased costs now make sense over the length of time you're likely to remain on that tariff. It's like when my mobile provider offer me a new tariff at the end of my contract - but it effectively ties me in for another period of time for the savings to be worthwhile.
A key factor is whether you're happy with the current provider or, if not, is this an opportune time to shop around - in which case, an IFA is the way to go.0 -
Thanks for your thoughts - the only way he'd give details was in a face to face meeting "after risk assessment".
It sounded as though an existing customer can transfer to a post-RDR deal with the same provider/same pension/same fund and save on charges - the amount of saving was estimated at just under £10k over 9 years to age 75.
I'd no idea whether/how switching from income drawdown to income drawdown with the same provider invested in the same fund could reduce what I pay in ongoing charges.
I'm aware that the 120% GAD rate I'm on changes to 120% for all on March 26th - are pension companies expecting an exodus ?
I thought I'd have to stay put to keep the higher GAD rate.0
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