Anyone used mypensionexpert.com

dunstonh

Also, though I suppose I shouldn't expect a pension expert to be an expert on everything else financial, when I mentioned that my benefits might be affected by this pension, he said that he knew nothing about the effect of pensions on benefits, saying, 'Well, I've watched 'Can't Pay? We'll Take It Away!' on telly, so you'll have to find that out yourself.' Not even a hint of using his 5% commission to find out for me. Personally, I would have thought that the two are fairly closely linked, so that he SHOULD be aware of how benefits are affected, but perhaps I expect too much. I will contact the DWP myself.

IFAs are required to know. Those that restrict the advice to limited areas are not allowed to refer to themselves as IFAs. Sales people are not likely to have the knowledge an IFA would.

So, not the best impression on me. The figures I was sent by him were the net figure after he had taken out his commission.

If it is commission, then this must mean that it is a non-advised sales process. Commission has been banned for over 5 years on advised business. It is not banned on non-advised sales. IFAs can only be paid by fee. The fee can be taken from the pension pot. e..g £500 fee on a £80,000 pot would reduce the pot to £79,500 and that is the amount that would buy the annuity. Commission, on the other hand, does not deduct from the pot but uses a lower annuity rate that factors the commission into the rate. In either case, the amount being paid is important.

Malthusian

Rude staff, shoddy website, and the anonymous representative who signed up to this forum thinks we're complete idiots.

It may not be a scam but it is certainly a bucket shop.

There are also still question marks over the company's claim to offer independent financial advice because Mum of Joey below was clearly going through a non-advised sale process. State benefits do not come into the restricted / independent distinction as they're not a financial product. However, both restricted and independent advice must consider the impact of state benefits. If they don't it's non-advised sales at best and misselling at worst.

mum_of_joey wrote:

I have since seen that I'm not obliged to use a pension advisor on pensions under £30,000 (such as mine).

You're not obliged to use a pension adviser on a pension of any size, unless it has safeguarded rights.

Alibert

Except you have to have an advisor to transfer out of a DB scheme, right

Silvertabby

Alibert wrote: »

Except you have to have an advisor to transfer out of a DB scheme, right

A DB scheme does have safeguarded rights. As do DC schemes with GARs (guaranteed annuity rates).

jamesd

Alibert wrote: »

Except you have to have an advisor to transfer out of a DB scheme, right

If the value is more than £30,000 you must get professional advice before transferring out. You don't have to follow the advice, just get it.

No advice required for defined contribution pensions unless there's a defined guarantee of some sort. But shopping around can get higher annuity income, as can using a financial adviser.

jamesd

mum_of_joey wrote: »

I am not well-off (the Mypensionexpert chap was charging 5% on £22,500) but of course, my friend only meant his own chap, not someone he had no knowledge of.

If you're anywhere near to state pension age, within 5-10 years before or after - it's worth asking for comparison with state pension deferring. You can do this even if you've claimed it. It'll normally pay more guaranteed, inflation-linked income than an annuity unless you have lifestyle or medical factors that significantly reduce your life expectancy.

With means tested benefits it can sometimes be a good move to spend capital on things like necessary or desirable home improvements. That can reduce the income you're assumed to get.

Similarly, a level annuity starts out paying more but doesn't increase with inflation. An inflation-linked annuity does increase but starts out a lot lower. That lower start can reduce the amount of benefits lost. But state pension deferral is likely to be a better deal.

The benefits interactions can be tricky so you might also want to get free advice from CAB.