Consolidation - should I pay for advice?

Goldust

Hi,


I've been trying to find a financial advisor to help me. I used unbiased.co.uk but they didn't have anyone and it got me thinking.


I have a Standard Life stakeholder/investment type pension with my current employer which has about £40k in it.


My previous employer used Legal and General and I have about £100k in there.


They have both performed OK (stronger at different times but overall not a bad increase) and are similar types of investments as far as I can see.


I'd like to merge them just for the sake of simplicity and also to potentially reduce management fees although these are a % as far as I can see so it wouldn't actually make that much difference.


It feels like a waste to pay for a fairly simple piece of advice and I'm not sure what additional analysis will help so maybe I should just do it?


Appreciate I'm asking people of the internet about my whole retirement fund here but I was hoping to at least get some views before I decide what to do next.

Nasqueron

I found a local adviser on unbiased who helped me get through combining a personal pension and work pension when I moved jobs to get onto a better platform and reduced fees as the old plans were quite high. They looked at risk and what I was willing to accept and got a better platform with lower fees and hopefully better earnings (my pensions were all based on my own guesswork!). She also advised on a savings plan S&S ISA which is working a bit better than my savings rates too.

Seabee42

I know consolidation makes things easier but check the costs first. Consolidate or not should be about making more money.


It is possible the ex company scheme might have lower charges. In our scheme the company pays all the administration costs for example.

Linton

Seabee42 wrote: »

I know consolidation makes things easier but check the costs first. Consolidate or not should be about making more money.


It is possible the ex company scheme might have lower charges. In our scheme the company pays all the administration costs for example.

On the other hand some companies may only subsidise the administration for current employees. So you need to research both the old and potential new schemes. You may well find that other factors outweigh any cost advantage - eg range of investments available or whether you can manage the pension on-line.

dunstonh

I've been trying to find a financial advisor to help me. I used unbiased.co.uk but they didn't have anyone and it got me thinking.

Unbiased is a directory of advisers. It is a commercial company and it prioritises paying firms (most do not pay). So, you need to unselect the box that says to show paying firms only (or words to that effect).

Most post codes will have multiple adviser firms.

They have both performed OK (stronger at different times but overall not a bad increase) and are similar types of investments as far as I can see.

Performed ok relative to what? Are you in a position to know what good/bad/indifferent performance is?

I'd like to merge them just for the sake of simplicity and also to potentially reduce management fees although these are a % as far as I can see so it wouldn't actually make that much difference.

Fees will be different on different plans. it will make a difference.

It feels like a waste to pay for a fairly simple piece of advice and I'm not sure what additional analysis will help so maybe I should just do it?

Actually, pension switching is medium/high risk in terms of advice liability. An adviser will complete a cost analysis of what you have vs alternatives. Investment analysis and recommend alternatives suitable for your risk profile, capacity for loss, knowledge and understanding, objectives etc.

A standard life stakeholder is likely to be out of date. I havent used L&G for pensions in over a decade. Doesnt mean your versions are out-of-date but with both of those, either moving to something better or cheaper is a likely recommendation.

xylophone

A standard life stakeholder is likely to be out of date

It is his current employer's choice.

I have a Standard Life stakeholder/investment type pension with my current employer.