Pension Options

skmiles

Good morning
My father is able to draw down his pension from September 2018. He has a financial adviser who is wanting to charge him 4% for the privilege.
Is my father able to draw his pension himself without having to give 4% away to an "adviser"??
Many thanks

TcpnT

You need to supply a few more details in order to get a useful answer.

What type of pension is it and where is it currently held?
Does it have any guarantees attached to it which may necessitate the use of an adviser?

dunstonh

Is my father able to draw his pension himself without having to give 4% away to an "adviser"??

Yes. (assuming its a Defined contribution scheme with no safeguarded benefits - if there are safeguarded benefits and value is over £30k or its a DB scheme then he will need advice)
He may have to move the pension and dont assume that DIY will be cheaper. (DIY well and it could be. DIY badly and it may not be).

For context, we had someone that was going to DIY but the annual charges they were going to pay on the DIY option from the existing provider were more than double those what we were able to arrange with the same provider. Yes, there was an initial charge but it broke even within a few years.

The relevant of that is that just last week the FCA stated 94% of DIY drawdown cases use the same provider they were with for the accumulation stage (building up the pension). Compared to just 35% with advised cases. The drawdown products offered by providers are usually twice or even three times the annual cost of the adviser version. So, if he is going to go DIY, then he needs to it properly and use a provider focused on the DIY market.

4% sounds high but, as ever, with percentages, it is the monetary amount that matters. 4% of £10,000 is cheap. 4% of £100,000 is expensive.