Financial advisor charges help PLEASE....

steveyt_2

dunstonh wrote: »

That is what I thought as charges are the only things you can compare on a like for like basis and put an actual figure on it. So, what they are saying is that the SW pension will save you £14,000 due to reduced charges over the term. The two biggest comparison software providers are selectapension and O&M. You may see reference to the name on the paperwork.

I believe that it was O&M that she used. Scottish Widows came out top whereas The Pru plan about 15th. I think the figures were based on 5% growth over the next 20 years and after charges i would of been £14k better off.

Ive since been in touch with my works Pension advisor and he said their fees on a fund around £95k would be around 2% and 1% a year after that but he did say that because i still have 20 years left to go it might be worth just tweaking it every 2-3 years rather than once a year to save me a grand a year in fees and he just gets paid for the visit when its time to tweak it.

Feel a bit happier now.....lesson to be learned...DO NOT RUSH INTO THINGS I SUPPOSE

mania112

Some points

• 4 and 1 is high, 3 and 0.5 is better (isn't it!)
• If you're talking about With Profits, there's not much better than Pru
• If you're talking costs, ensure the adviser added their fee into the calculation. That way you know it's STILL better to transfer even included all fees
• Check the Adviser is a registered person on the FCA register

sandsy

Re. The ongoing charge - before you commit to that, be absolutely clear what service you are paying for. You can opt to switch the pension without taking an ongoing service. There's nothing to stop you taking advice on an ad hoc basis going forward.

Personally, I'm sceptical of fund rebalancing recommended by advisors because, as was previously indicated, it's crystal ball gazing as to which funds will do better. You need to decide if you want to be rebalanced regularly so that if the proportions in each fund change, due to underlying changes in the value of the funds, you are always returned to your default position to match your risk profile.

New_World_Man

I think xylophone made a good point earlier.

OP states it was an independent review by a financial adviser.

Is this the same as a review by an independent financial adviser or is it a clever play on words to make it sound like an IFA?