Charges for pension advice

beezkneez

I have had a pension rumbling along for a few years and not had any updated advice about it until now

The company I took it out with came out to see me and recommended transferring my 2 pensions into one as the who pension system has changed over the past years

My query is over charges. I know they have to get paid for the service but what % figure is standard?

I think he said there would be a transfer charge and then a yearly figure? Does that sound right? I think he said the charge for transfer would be approx £1,800 and then an additional yearly charge

Thanks!

Al.

I am slowly rolling out a model, whereby, if the client's needs are straightforward and on the basis that technology and Skype (etc) can be used to save time, then a flat fee of much, much less than that is achievable.

beezkneez

Al

Do you think I'm getting over charged? I'm not sure what to do! He went thorough everything so quick and got me to sign all the forms

I have emailed his secretary already asking for a breakdown of the fees but do I have a time period to back track like in some situations where you have 14 days?��

Can I put things on hold whilst I go through things

Thanks

Al.

If the advice related to your entire circumstances, or confined to retirement planning? Do you really care that much if you have one or two pension plans - is there any benefit to fusing them (reduced costs etc)? What would the impact of the charge be, ie; would the headline benefit be lost and if not, what is the net benefit to you?

£1800 is quite spicy, but it depends on lots of factors. A small fund would experience a greater shock to it than a large one of course.

beezkneez

My pensions were set up in possibly 2000 and have had no reviews since. They were high risk ones and so he said to change to a less risky option. I think it's all being done through standard life. I don't really know much about pensions and don't even know why I had 2 and my partner has one!

Al.

My first instinct, if the underlying funds were unsuitable, would be to consider a simple fund switch - far cheaper. If that company was contracted to help you, and if you paid them a set amount each year, you could ask why they had done nothing with you for the past fifteen years of course. Another reality too; if you're in funds that are not appropriate because they're too risky, you're going to realise that loss by selling them now. Would a short wait be so dreadful until/if they recover, bearing in mind you've been in them for fifteen+ years anyway?

beezkneez

Ok thanks I'll see what they say in response to my email tomorrow

beezkneez

Advisor has replied and says that its a 4% fee for transferring the pension. There's no charge to exit the pension. The only other yearly fees are

Standard Life Charge 0.4% per annum
Fund Manager Charge 0.56% per annum
Advisor Charge 0.75% per annun

If I phone the pension company direct will they tell me if the advisor has been getting a fee for ongoing reviews?

My current fund has dropped by about £2000 since last July when I saw them initially

I was under the impression that he was coming out to review my pension as nothing had been done since it was taken out in ? 2000 and so am a bit surprised to be told of the 4%fee

What other option are the out there? I appreciate advisors need to earn money for their work but I'm sure they have been getting a % each year since if was taken out

Thanks

Al.

Is he/she your adviser anyway, and have they definitely been taking their 0.75% since year 'dot'? If in doubt, ask the pension provider. If so, ask the adviser what they have done to warrant it.

Is it correct to assume that the £1800 you referred to reflects a 4% valuation of your fund?

dunstonh

so am a bit surprised to be told of the 4%fee

Commission doesnt exist any more. So, it has to be fee basis. Different firms will have different fee levels.

Some firms will be transactional and higher initial and no ongoing.
Some will be servicing and have lower initial and an ongoing figure
Some will be a bit of both
Some will be good value. Others greedy.

I appreciate advisors need to earn money for their work but I'm sure they have been getting a % each year since if was taken out

unlikely on a 2000 pension.

beezkneez

I'm going to try and find out tomorrow if they have been getting a % for the last years. I may not get chance till Friday

Yes the £1800 is 4%