Advice on Flexi Access Drawdown

Piranha1

At the risk of making a fool of myself I would like to ask some questions regarding my pension.
I've tried to do my own research and this only confuses me further, I admit I'm out my depth and would appreciate advice to consider.

I have a large pension heading towards a 7 figure sum on a good day with the wind behind it.
I'm retired, currently taking it as drawdown income, and would like to stay within the 20% tax bracket and hopefully keep the pot healthy to pass on to my children. This is my only income.
Just now I pay 0.8% to the pension provider.

I've been advised by my IFA Company (new person I'm dealing with) to move to a Flexi Access Drawdown, which as it was explained to me I'm happy to do so.

The pension is staying with the same provider and the new terms are 0.35%, and 0.5% annually to the independent Company for management.
There will also be a 1% charge for the move to cover insurance for the IFA.
Although this is in line with what I'm paying just now I feel it's a high amount.
Should there be a sliding scale for the value of my pension?
He also would like to move my Isas to be with the same Company. No charge for that transaction. Is it a good idea to have all your eggs in the 1 basket?
I hope I have explained it correctly, it's like a different language if you aren't familiar with the terminology.
I would appreciate your advice and comments.

jem16

Piranha1 wrote: »

Just now I pay 8% to the pension provider.

What do you mean by you pay 8% to the pension provider - per annum or withdrawal or what?

Do you mean 8% - that doesn't sound correct?

The pension is staying with the same provider and the new terms are 0.35%, and 0.5% annually to the independent Company for management.

Is the 0.35% the total including fund charges or is that just the platform charge?

0.5% to the IFA would be the norm.

There will also be a 1% charge for the move to cover insurance for the IFA.

So earlier you said it was heading to 7 figures - based on a £1m pot that would be a fee of £10,000. That's very high in my opinion. I would expect something much lower than that.

Should there be a sliding scale for the value of my pension?

If working with percentage charges I would expect some sort of collar on that.

He also would like to move my Isas to be with the same Company. No charge for that transaction. Is it a good idea to have all your eggs in the 1 basket?

Your eggs are not all in one basket as I assume they would be invested in different funds.

Piranha1

Thanks for your quick response jem16.
It was 0.8% per annum I meant. I will amend that.
From your reply I assume the figures are negotiable.
The 0.35% provider charge I took to be the total amount but I will check that.
I'm going to shop about. I tend to go brain dead when it involves my pension but I'm going to treat it like any other purchase from now on and get the best deal/service for a fair amount.
I'm just learning the questions to ask and my options.

jem16

Piranha1 wrote: »

From your reply I assume the figures are negotiable.

The IFA charges will vary with each IFA/company. You may be able to negotiate with this IFA but you may need to approach another.

dunstonh

I'm going to shop about. I tend to go brain dead when it involves my pension but I'm going to treat it like any other purchase from now on and get the best deal/service for a fair amount.

It should be noted that it is what the IFA will do. Be careful you dont incur adviser costs for work if you decide to overrule the adviser. Indeed, with a charge of 0.35%, you are at the lower end in respect of costs for provider. The adviser ongoing charge is the most common figure used by advisers.

Piranha1

Thanks dunstonh.
It's more the IFA fees I was enquiring about.
It's a large well respected provider I'm with and while if I had been more pension savvy I might have done slightly better I'm not actually questioning the returns I have got from them.
The pension was moved from Equitable life and the company I was using at the time got paid a large commission which meant I'm one of the few people that havent been paying my IFA on a yearly basis. I do understand that doesn't always bode well but I don't feel I've lost out.

The company has changed its structure and it's now time for me to question and make changes if any. I just want to make sure I've crossed all the T's and dotted the i's.
I appreciate your comments.
I