does ifa really take 50% fee auto enrolement

stu12345_2

read paperwork, it says welcome you have been automatically enroled in employers group personal pension plan
it says advisor charges can be taken if employers group pension plan was started before a certain date by law.

there is a booklet that states ifa charges can be stopped ifa dies,insolvent,breaks legislation rules, fees have a detrimental affect on plan etc, many condition.
but dont know what this so called date was when law changed.
it says all new group plans taken out after this date cant have ifa fees.

she only started plan in sept.
if this plan has been say since 2012, does that mean those that join today are in a new plan or just new members of the old plan that is outside the new rules on ifas fees.

no idea how long employer has offered its plan, so is it stuck with old legislation, regardless if its auto enrolment with employer contribution, and will be like that forever regardless if you joined last year, today or next year.

dunstonh

if this plan has been say since 2012

Its not your wife's start date. it is the start date of the group scheme.

agarnett

dunstonh wrote: »

So, that equates to an advice charge of £1080 (a net cost of £864 to your wife as there is tax relief on it). That is very reasonable.

I really don't think you are in any position to make such a judgement. You are an IFA. You believe your advice is worth crazy money.

My Audi car would cost less than that to buy and keep. It looks good, runs brilliantly and never lets me down. Show me an IFA that performs as well for an ordinary punter.

Come to that, show me an IFA that ever won anything in the New Years Honours List - Services to Self? I don't think that qualifies :rotfl:

addedvaluebob

Don't get hung up on the booklet and scheme details, the bottom line is for her to stop giving this ifa £75 a month for nothing. She started this year but the scheme is obviously an old group personal pension with commission

There is no 'advice' in this transaction, she completed a form and submitted it, she has never even seen the ifa in question. the fee in question is completely disproportionate to the work involved.

dunstonh

I really don't think you are in any position to make such a judgement. You are an IFA. You believe your advice is worth crazy money.

And you don't know the costs of running an advisory business.

My Audi car would cost less than that to buy and keep. It looks good, runs brilliantly and never lets me down. Show me an IFA that performs as well for an ordinary punter.

I dont know any IFAs that have four wheels and a steering wheel. Humans tend to be missing those things.

Come to that, show me an IFA that ever won anything in the New Years Honours List - Services to Self? I don't think that qualifies

Being a celebrity or a !!!!!phile is not something most want.

agarnett

dunstonh wrote: »

... I dont know any IFAs that have four wheels and a steering wheel. Humans tend to be missing those things.

It's the lack of a moral compass that worries most of us I think.

addedvaluebob

This has got nothing to do with the costs of running an advisory business, it is all about one greedy ifa milking the most commission for the minimum effort. As everyone points out regularly this is a money saving website and the employee in this instance is wasting £1,000 + if they continue with this pension in it's current form to line the pockets of the ifa.

£1,000 for putting in a form, utterly indefensible

atush

As said above (despite you never answering the questions I have asked)

I would suspend her payments into the pension above what she needs to get the one%. Period. Then open a S&S isa (and put the proceeds in her pension once auto enrollment rules come to her pension in 2016) or start a Personal pension (my preferred course) at a lower cost, choosing her own investments.

It seems a very easy choice.

addedvaluebob

There is no point putting the 1% into the scheme to get the employers contribution because the ifa takes half of the total, thereby wiping out the employer contribution anyway. Personal pension is the way to go until 2016

stu12345_2

ill keep you up to date, maybe post again monday morn, can see the ifa say your wife signed the plan, tough.

like i said 2016 wont make any diff, ifa can use commission after 2016, same as at present.
if she stops, wonder about the first year set up plan fee, shes paying up to, will ifa hold her to that.