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IFA fees -how to pay

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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?

Comments

  • ianthy
    ianthy Posts: 172 Forumite
    Part of the Furniture 100 Posts
    In my case the fees were taken out of the pension pot.
  • dunstonh
    dunstonh Posts: 119,646 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    With pensions, its nearly always best to pay it out of the pension due to tax relief.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • 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?
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • Linton
    Linton Posts: 18,154 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    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.
  • 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.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
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