IFA fees -how to pay

gonedownthepub

Good Afternoon all
For those people who have successfully transferred from a DB/final salary pension how did you pay the fee to an IFA?
Was it deducted from the transfer value or paid separately?

ianthy

In my case the fees were taken out of the pension pot.

dunstonh

With pensions, its nearly always best to pay it out of the pension due to tax relief.

bostonerimus

I'd want to keep my tax deferred pension pot as large as possible so it can compound over the years and so I'd pay fees from other funds. Is there any particular reason to reduce the pension pot by maybe 3% if there's an alternative?

Linton

If you dont want to decrease the amount in your pension pot why not make a personal pension contribution that will cover the fees rather than pay the IFA directly from your taxed savings. Gives you 20% off.

bostonerimus

Linton wrote: »

If you dont want to decrease the amount in your pension pot why not make a personal pension contribution that will cover the fees rather than pay the IFA directly from your taxed savings. Gives you 20% off.

That sounds like a good idea. You aren't reducing the size of the pot, you're taking funds from elsewhere, and using them to pay the fees through the pension to get a tax break.