Ifa costs

Lily1

Very new to this subject so help required. My husband is a member of the BSPS and now has to make a decision what to do next as there is an option to go into a different Tata scheme or go into the PPF or transfer out. The transfer value is nearly £813k so advice is needed. Can anyone give us an idea how much you would expect to pay for advice?

sandsy

Gosh, I can see you being quoted anything from £2,000 to £24,000.
You really need to shop around!

Lily1

Wow sounds like we will have to.

JoeCrystal

Found the following information from https://www.bspensions.com

All members will have two options: switch to a new scheme providing the same benefits as BSPS but with lower future increases, or remain with the current BSPS and move into the Pension Protection Fund. We're working hard to provide each member with the information they personally will need to make a choice that’s right for their situation. We will be holding meetings around the country in October and November, and will announce the details of these very soon. We will send out option packs containing personal information to every member in early October. We have set up a member website at https://www.bspensions.com/choose which will soon have more Q&As and in October we will launch a free and impartial helpline to help members to understand and talk through their options.

Future pension increases will be reduced whichever option members choose. The new scheme will offer the same or higher increases compared to the Pension Protection Fund.
Pensioners will generally be better off choosing the new scheme. Most of our members are pensioners over 65, or receiving ill-health or spouse pensions. These members will get the same amount going into their bank account as they get now, whether they chose the new scheme or the Pension Protection Fund. Everyone else will get the same pension as now if they choose the new scheme.
The choice for non-pensioners will depend on their personal situation. Most non-pensioners will see their pension reduced if they choose the Pension Protection Fund, though there are other differences which will offset this reduction for some members. They might then choose the Pension Protection Fund as the best option for them.

We’ll explain the differences between the new scheme and the Pension Protection Fund in the information we provide to members. Members will have two months to choose their option, and they should wait for their personal option pack before they decide.

Lily1

We are a bit distrustful of Tata now, so thinking a income drawdown arrangement would suit our situation better.

sandsy

Whilst I can see why you might feel you can't trust Tara now, I think you need to take a balanced view on the financials of the different options and not be swayed by emotion. The options on the table from that side are likely to have a high degree of security and will have been subject to much scrutiny before being offered. Transferring out has a whole different set of risks......

Lily1

Yes you are right, we are pretty risk averse so would certainly not rush into anything. We will opt for something as reliable as possible. My husband will still be working for a while yet, we are mortgage free and have decent savings so retirement should be reasonably sorted.

Money_Help

Going back to your original question I would suggest looking at Unbiased and Vouchedfor websites where you will find local advisers rated and reviewed. You should be able to contact them and ask them to give you an idea of the likely costs. Unbiased have also produced a guide on the cost of advice. If you Google 'Unbiased the cost of advice' it should come up.

As long as you are happy with the adviser and advice process I would not pay more than between £2,000 -£3,000.

Lily1

Thank you for that, I will start ringing round.

Malthusian

Lily1 wrote: »

We are a bit distrustful of Tata now, so thinking a income drawdown arrangement would suit our situation better.

You don't trust Tata to do what? Fund the scheme properly? If they went bust or found some way of wriggling out of it, the Tata scheme would go into the Pension Protection Fund, leaving you in largely the same position as if you'd gone into the PPF in the first place.

When you say that you are risk averse and looking for something as reliable as possible, it doesn't immediately sound as if you'd be one of those people for whom giving up the guaranteed benefits and managing all the risk yourself is suitable.

Lily1

We are happy going for something with relatively low annual increase rather than going with a riskier product. We have a lot of reading to do, though we have decided to move the pension. You do get the impression that this is what the company wants particularly with the merger going ahead. If we took the 25% tax free this would be invested separately, we don't like to have all our eggs in one basket!