IFA fees to set up and manage pension

xylophone

It is a modest pot.

How about a DIY SIPP?

https://www.hl.co.uk/pensions/sipp

http://monevator.com/using-vanguard-lifestrategy-funds-life/

Malthusian

LVR wrote: »

Thank you so much for your reply. I'm not sure what to do now having already signed with them, I wish I had taken time away to do my research before agreeing to it!

As Dunstonh says the fee you are being / have been charged is more than reasonable for what you are getting. Many advisers would not take on this business at all and refer you to a non-advised robo-flogger like Nutmeg.

The fact that their proposed fee for regular contributions is non-compliant is their problem and not yours, as you are not making any.

Other forum regulars would tell you to read up on DIY investment until you are confident enough to cut the adviser's 1% out, but it is a personal decision as to whether you feel you get enough value from your two meetings a year.

LVR

I have decided just that, that as I am not going to be making any contributions for the next few years I am happy leaving it where it is, and when I am in a position to start adding to it in a few years I'll do some research and shopping around at that point. At least for now my money will hopefully be growing and being taken care of.

Thanks all for your assistance!

sandsy

LVR wrote: »

The terms state "Thereafter our standard initial fee of 2% of the amount transferred will apply to any additional lump sum or regular contributions made, if additional capital is invested above an exisiting portfolio value of £300,000 the initial fee will be reduced to 1% of capital invested."

I haven't set up any regular contribution at the moment as I can't afford to for the next couple of years. There appears to be no time limit set on any future contributions and specifically includes regular contributions, are they allowed to do this?

There is no rule in the regulator's handbook which explicitly prevents an advice firm from taking a % of each new contribution in this specific situation.

It's quite subtle reading of the rules - it's true that initial contributions advice charges can't be taken indefinitely. This means that for collective investment schemes, they can't do it because a collective has no fixed end date. However, the pension you'd be setting up does have an end date - your elected retirement date - so implicitly the future contributions would finish at that point.