Charges involved in Pension Transfer

fifeken

Like many others on here, I'm contemplating taking a CETV from DB pension schemes. I've received the Transfer Value Analyses and the section on charges has me scratching my head a bit. I'm hoping someone on here can explain who is getting what, and whether the charges are in line with what would be expected.

My IFA does not have the necessary qualifications so has sub-contracted the TVA. The section on charges says:

We take a Product charge to cover the cost of administering your Prudential Retirement Account. 0.35%. (Who is the "we" in this section?)

Investment Charges to reflect the cost of managing your investments. 0.65% yearly charge. (I can see this figure on the Prudential Website too.)

Adviser Charges. Set up £3,775.31. Ongoing 0.5% each year, payable monthly in arrears.

The set up charge appears to be 1.25% of the CETV of just over £300,000. The fund is the Prufund Growth Fund Series D. There seems to be one too many bites getting taken, so please let me know what you think.

gibbo888

I have has similar quotes, i am not 100% sure on the funds, or the Pru's investments.

Set up seem in line with what i am seeing. is there an actual fee for doing the TVA? i have been quoted this in most of mine, mainly 500-1000 paid upfront, not out of the pot of money.

But
0.5 % is the IFA's ongoing fee. (
0.35% is the platform (pru) fee. think HL or III here for example.
0.65% are the actual fund fees, which are chargeable to you for accessing certain funds. some are high some are low. trackers are generally low.

Hope this clears some of it up. your fees seem inline with mine, i have had a few higher in total, and some less in total as well. just shop around.

davieg11

That's the correct charges. My IFA took 3% of the CETV. My platform Royal London take 0.45%. My IFA takes 0.65% monthly. Fund fees can vary greatly depending on what funds you are invested in. My Standard Life Pension charges 1.8% for one of my funds, SL Invesco Perpetual Global Targeted Returns. Others are much lower.