Fleeced by Financial Advisor? Pensions

Alexland

That's why I suggested doing the Aviva scheme initially. Eventually, depending on how much is contributed, there will be a point where the 1% extra employer contribution might be less significant to having the whole pot value managed at a lower cost especially if the OP is making extra voluntary contributions.

cryschuchimac

Thanks guys. It's been clarified that the ongoing fee for the FA is optional (even though on the forms he defaulted to us paying it). So that 0.5% after the first year can be eliminated. It would just be Avivas 0.6% fee to pay after the first year.

I'd still be better off in the first year to pay this guys 20% from my (and my employer) contributions... I just think it's wholly unfair and especially when this fee was dropped in AFTER the pension was opened and on the third meeting with him. Payments haven't actually yet been made

I haven't come across anything yet that informs me it's illegal or against guidance :-(

Alexland

It's not worth damaging you career over but it does make me wonder why you employer unnecessarily puts their staff in this pressure sales situation which may be against their long term interests. I also don't know why you had to later ask for the forms you signed when they should have given you a copy.

My employer has always been excellent securing a low fee pension (circa 0.3%), contributing 10% for a 5% employee contribution and operating salary sacrifice (although the employer NI saving is probably why they can be so generous on the employer contribution). They even send out an email before annual bonuses are paid promoting us to request payroll dept put some of any bonus into the pension.

cryschuchimac

Yeh, it does make me just want to not join at all. It just all feels a bit sketchy.
Sounds like you have a sweet deal!

Alexland

That's why between myself and my wife we have around 25 years service despite being in our 30s! A good employer gets loyal staff who think long term about the health of the business as their futures are dependent on each other.

cryschuchimac

This employer is relatively new to me. They have some fake awards. It doesn't really give me confidence...

Alexland

If you need the job take it and keep looking. Most industry awards are bogus. We keep getting awards from our suppliers in the hope we will spend more with them...