Cutting out IFAs on pension contributions.

Jinto

At the risk of upsetting any IFAs here, Is it possible to increase my pension policy contribution to an existing scheme without involving an IFA?
I already have the policy, I just want to increase my contribution I don’t see why I should be forced to pay commission for advice when I neither need it, nor want it.
Recently my company increased it’s contribution in to the group pension scheme and I was required to match the value. The IFA dealing with the scheme then sent me a letter showing the commission charges that they would be receiving as the ‘cost of this advice’.
Is there no way to cut out the IFA.

EdInvestor

Not if it involves a GPP unfortunately. If it's an ordinary PP, you can go the "repensioning" route as outlined by Martin using a broker which will rebate charges such as Cavendish.

Jinto

Thanks,

I thought that might be the case, it just bugs the hell out of me that the IFA should get a cut on something which frankly they didn't do any work for and had no influence over. The other scheme I was talking about is a standard PP not a GPP so I will go and try to find Martin's article.

jamesd

Be aware that your employer may insist on you continuing to use the same IFA. The IFA may be providing them with services that are paid for out of the annual management charges you are paying, via the commission that is based on them. The IFA can probably set the AMC to adjust the commission level, so two people with the same pension can have different fund charges.

Jinto

Yes, it is the case that I have no choice but to use the IFA on the group pension scheme but the other PP which i refered to is my own policy which I took out before joining my current company and it wasn't with this advisor.

dunstonh

You cannot change the servicing IFA on a group scheme without getting the authorisation of the employer. Its all or nothing.

Going direct to provider can cost you more than using an IFA. If you dont want to use an advice IFA then use an execution only IFA. Its cheaper than direct.