Final Salary Transfer IFA fees/charges

dunstonh

I am surprised that for many IFS's they do not tell you what they charge on their internet site.

1- they may not have a website. Many do not
2 - how do you price a job without knowing what the job is going to be?

For example, do you ask a builder to give you a quote to build an extension but ask him to price it without knowing any of the details?

PeterBalham

Hi Dunstow

I have no idea how the chap who said he would charge £1,500 did this .

On his website he said he charges 1.5% of a final salary scheme with a lower cap of £1,500

I called him and said he would be happy to do this

So it is possilble

dunstonh

So it is possilble

Its possible but has limitations. What about easier jobs that do not take as long or have as much risk? They could be £500 if priced knowing the job. The £1500 seems expensive then.

There are many models. Hourly rate, percentage based (some flat with a cap, some tiered), fixed charge or even some broken down in stages where you pay for each stage of the process. Each has pros and cons. The limitation with a one-size-fits-all fee option is that you have cross subsidy. Some will do well out of it. Others will not.

PeterBalham

Hi Dunstonh

As a layman I can see the calculation of the work required is going to vary, and in some cases may justify a lot more.

I think the detail I gave him was I worked for Santander for 6 years in the 90's . They are offering me 283k .

The scheme is admistered by JLT and they only charge £1,250 if I wish to transfer it out. They said this was because they already have all the details of how the scheme works, ie RPI increases , transefer to spouse, dependent children all loaded up.

So it takes a lot less work to make the needed calculations. I intend to to add the £283k to my exisitng SIPP with £270k maybe in that niche situation his fee is not good value?
The 33k is a welcome addition to my SIPP but I am not dependent on it ad would not suffer loosing the oncome the DB schem would provide

mgdavid

PeterBalham wrote: »

Hi Dunstonh

As a layman I can see the calculation of the work required is going to vary, and in some cases may justify a lot more.

I think the detail I gave him was I worked for Santander for 6 years in the 90's . They are offering me 283k .

The scheme is admistered by JLT and they only charge £1,250 if I wish to transfer it out. They said this was because they already have all the details of how the scheme works, ie RPI increases , transefer to spouse, dependent children all loaded up.

So it takes a lot less work to make the needed calculations. I intend to to add the £283k to my exisitng SIPP with £270k maybe in that niche situation his fee is not good value?
The 33k is a welcome addition to my SIPP but I am not dependent on it ad would not suffer loosing the oncome the DB schem would provide

Now I'm confused (again).
In your post #8 you said it was a Ferranti pension worth £33k. Story seems to have changed?

PeterBalham

Hi Mgdavid

I have a two final salary schemes

One of them is with Santander the larger one

This is admisitered by the company JLT and they are happy to tansfer it out for a really low amount of 1,250 .
This is very low for a £283k pot they are doing this because they are administering tens of thosand of such schemes
The chap there told me all achemes are different linked to RPI, capped at 5% , payments paid to dependents etc etc.
All this means they have a lot less work


The other is with Feranti it is 33k , so just over the £30k where I need advice . Tomorow I will be seeking to find is anyotne will beat the £1,500 quote I have received to transfer this pot

So two seperate pots

AlanP_2

I'm still confused.

If JLT are administering your deferred Santander pension that has a CETV of £283k then you will need independent advice from a suitably qualified pension transfer IFA who will charge you.

Not sure what, or why, JLT would be charging the £1250 for as their job is simply to check you have complied with the requirement to obtain advice and then pay your chosen provider for the new personal pension?

PeterBalham

Hi Alan

Santander do not administer the pension fund JLT do it on their behalf. I do not have a Santander contact number

Apparently this is quite standard

I trained as an accountant so I have no specialist knowledge

I just have the JLT headed note paper and the fact I used to work for Santander actually mostly I was at Nat West, then the bit of the company I worked for sold to Abbey National and a few years after that Santander bought Abbey National.


I am just after a quote for a £33k pension scheme


all the best Peter