We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Being forced to seek IFA on pension transfer

1356

Comments

  • EdGasket
    EdGasket Posts: 3,503 Forumite
    "It's hardly worth £500, which is what I've been quoted!"

    Nice work if you can get it! I always maintain that pensions are a gravy train for IFA's
  • dunstonh
    dunstonh Posts: 120,291 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Nice work if you can get it! I always maintain that pensions are a gravy train for IFA's

    £500 for a pension transfer is barely profitable for most advisers. I wouldnt do it for £500. It certainly is not a gravy train. 20 years ago maybe. Not now.
    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.
  • EdGasket
    EdGasket Posts: 3,503 Forumite
    dunstonh wrote: »
    £500 for a pension transfer is barely profitable for most advisers. I wouldnt do it for £500. It certainly is not a gravy train. 20 years ago maybe. Not now.

    You just proved my point!
  • dunstonh
    dunstonh Posts: 120,291 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    EdGasket wrote: »
    You just proved my point!

    Your point was that is was highly profitable. Mine was that it was not.
    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.
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Mine was that I am sick of IFA bashing.


    FA bashing, unregualted scams bashing are fine.
  • EdGasket
    EdGasket Posts: 3,503 Forumite
    Some people have to work really hard to earn £500. If you aren't profitable then its because you are living too high a life style. Try walking instead of driving a BMW.
  • bmm78
    bmm78 Posts: 423 Forumite
    EdGasket wrote: »
    If you aren't profitable then its because you are living too high a life style

    No, it's a simple case that revenue from providing the service is less than the cost of providing it. Lifestyle doesn't come into it if the business doesn't cover its costs.

    Regardless of the size of the fund or specifics of the case, justifying pension transfer advice is an onerous and costly exercise. £500 is unlikely to cover this.
    I work for a financial services intermediary specialising in the at-retirement market. I am not a financial adviser, and any comments represent my opinion only and should not be construed as advice or a recommendation
  • dunstonh
    dunstonh Posts: 120,291 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    If you aren't profitable then its because you are living too high a life style. Try walking instead of driving a BMW.

    You are not one of those people who think that if you spend £100 in Tesco then that means Tesco gets to keep the whole £100?

    Business profit has nothing to do with lifestyle.
    Some people have to work really hard to earn £500.

    Earning £500 and paying a £500 fee are not the same thing.
    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.
  • xylophone
    xylophone Posts: 45,762 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    justifying pension transfer advice is an onerous and costly exercise. £500 is unlikely to cover this.

    This may well be so but the specifics of the case were very important in this instance - it would be difficult to justify not transferring out!
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    EdGasket wrote: »
    Some people have to work really hard to earn £500. If you aren't profitable then its because you are living too high a life style. Try walking instead of driving a BMW.

    That was just plain ignorant. The amt of work an IFA must do to make sure they are compliant takes many hours. Not to mention indemnity insurance to cover complaints. This all has to be paid for. Per hour rates have to cover everything incl overheads so they aren't going to take on non profitable business.

    Higher prices for this work were inevitable with the new reforms as the little fish used to be subsidized by the big fish so they didn't have to pay as much.

    I suppose you work for nothing? Doctors and lawyers and chartered accountants are also professionals and charge more.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.2K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.3K Work, Benefits & Business
  • 601K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture