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FA charges

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Kard234
Kard234 Posts: 10 Forumite
Ninth Anniversary First Post Combo Breaker
in Pensions, annuities & retirement planning
My pension company Arriva (Aon Hewitt) are unable to do flexible drawdown alongside my tax free lump sum. I have contacted a financial adviser who is will get the 25% and also set up flexible drawdown with Royal London. I am concerned about the charges. He is charging £4200 immediate and then £315 in year one and £206 in year five. Is this excessive?

Comments

  • dunstonh
    dunstonh Posts: 119,624 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    My pension company Arriva (Aon Hewitt) are unable to do flexible drawdown alongside my tax free lump sum.

    That is the norm with occupational schemes.
    He is charging £4200 immediate and then £315 in year one and £206 in year five. Is this excessive?

    Charges for ongoing years are low. Charge for initial is high (somewhere around £1500 would be closer to expectation).
    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.
  • torbrex
    torbrex Posts: 71,340 Forumite
    10,000 Posts Combo Breaker Rampant Recycler Hung up my suit!
    yes, mine charged £795.
  • Kard234
    Kard234 Posts: 10 Forumite
    Ninth Anniversary First Post Combo Breaker
    Thank you both for such a fast response. Very helpful.
  • xylophone
    xylophone Posts: 45,604 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Which of these schemes are you in?

    http://www.arrivapensions.com/general-pensions/scheme-details
  • zagfles
    zagfles Posts: 21,408 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    Is it a DC scheme with no guarantees etc? If so you could probably transfer it without an IFA if you want (but perhaps not to RL, HL would likely accept it). But if you do want advice, negotiate a lower charge, £4200 seems ridiculous!
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    HL have excellent service, though their platform charges can seem a bit high if it's a big fund. For our small funds they're fine.
    Free the dunston one next time too.
  • philwal_2
    philwal_2 Posts: 56 Forumite
    What is the size of the pot being moved 4200 is expensive even for a defined benefit transfer
  • Al.
    Al. Posts: 322 Forumite
    £4200? What's he doing, writing the report in the blood of his firstborn?
    Independent Financial Adviser.
  • Freecall
    Freecall Posts: 1,337 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Despite the title of this thread being 'FA charges', I certainly wouldn't call £4,200 FA.


    :p
This discussion has been closed.
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