Using "Transact" to manage my PPP - good idea?

Gr1mb0

Hello. My IFA has advised using the "Transact" PPP platform/wrapper to administer my pension pot, which will be around £1m. As you might imagine, I'm keen to ensure this is a sound decision and that the administration costs will be competitive.

The aim would be to withdraw the c. 25% TFLS soon, and then leave the remainder to accumulate further for c. 5 years or so when I intend to retire and take regular income.

Has anyone used Transact for this type of (or similar) investments? I'm aware they have won some industry awards, but they don't seem to appear in any of the platform reviews/comparison tables (e.g. on costs) - which makes me a little nervous.

Any views most welcome. Thank you

HappyHarry

Transact is a platform that does not deal directly with consumers, rather, they deal with advisers.

This means that Transact will not generally appear on consumer platform review/comparison tables.

Your adviser will want to be using a platform that is inexpensive, flexible, and provides the adviser with good service.

This is not a recommendation, but from my experiences, Transact would tick all those boxes.

dunstonh

ut they don't seem to appear in any of the platform reviews/comparison tables (e.g. on costs) - which makes me a little nervous.

This is an IFA/intermediary platform. Not a DIY platform. So, you wouldnt see them in comparison reviews/tables as they only focus on those that deal direct with consumer.

IFA platforms are a little different to DIY platforms as they are able to pass much of the work over to the IFA. So, they are geared for the IFA. DIY platforms do not cater for IFAs.

I'm aware they have won some industry awards,

Forget awards. Too much manipulation and gimmicky. Some really awful products and providers have won awards.

Transact used to be quite expensive. However, every year in recent years they have been lowering their charges. Their approach has been to earn enough to be financially stable whilst improve charges when their size and economy of scale allows it. Some platforms have never made a profit and are priced at a level that will likely end in failure or being bought out by another or you find they end up lacking the resources to develop and improve their software an infrastructure over time (some of the early platforms are suffering this now.

Transacts software is very good and their front end for consumers is very simple and informative. It is a full whole of market platform with anything available on the LSE able to be used. It has access to all the major tax wrappers.

It is not the cheapest. it is not the most expensive. What it does, it does well. You could position it as a quality option rather than a budget option.

Platforms are also a bit like supermarkets. Some prefer Aldi, Tesco, Morrisons or Waitrose. They all largely sell the same things but have a different environment and prices. You may prefer one as its easier for you to go to and you prefer their layout. Or one may have more stock than the other. Platforms are the same. Some restrict their investment range. Some are cheap but really unpleasant to use. Others look very nice and do lots of things but cost a bit more.

An IFA will use the platform/provider that they think is right for you based on your discussions. Your IFA seems to have focused on a quality option with a good internet front end for you. If you would prefer cheap and cheerful then let your IFA know this. However, as it stands, you are unlikely to be disappointed with Transact.

DancingBadger

Our pension funds are managed on the Transact platform and we've been more than satisfied with the ease of using their site and their customer service.

Gr1mb0

Thanks all. Good point about it now being a D2C platform - though would still be good to be able to do a charges/fees comparison readily with some of the alternatives without having to build a spreadsheet!

dunstonh

- though would still be good to be able to do a charges/fees comparison readily with some of the alternatives without having to build a spreadsheet!

That is what the IFA is for.