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True Potential - good idea or not?

Madeinireland
Posts: 76 Forumite
Hi,
I went to see an advisor today from True Potential on my final salary pension. He is going to get a transfer value from my pension administrators (This is a BT pension - section
by way of exploring that as one possible option.
Apparently the costs of going with them if I were to move my pension fund to their platform is as follows....
A one off transfer advice fee probably capped at £5000
Using their balanced portfolio would be ongoing costs of 0.81% per annum
Platform costs of 0.4% per annum
On going advice costs of 0.5% per annum
My pension value is going to be in the region of £1m plus.
Having not ever had dealings with an financial Advisor before I’m just getting opinions on these costs? I’m aiming to see a full IFA advisor (the one from True Potential is restricted) as well in next couple of weeks.
Opinions welcome.
Thanks...
I went to see an advisor today from True Potential on my final salary pension. He is going to get a transfer value from my pension administrators (This is a BT pension - section

Apparently the costs of going with them if I were to move my pension fund to their platform is as follows....
A one off transfer advice fee probably capped at £5000
Using their balanced portfolio would be ongoing costs of 0.81% per annum
Platform costs of 0.4% per annum
On going advice costs of 0.5% per annum
My pension value is going to be in the region of £1m plus.
Having not ever had dealings with an financial Advisor before I’m just getting opinions on these costs? I’m aiming to see a full IFA advisor (the one from True Potential is restricted) as well in next couple of weeks.
Opinions welcome.
Thanks...
0
Comments
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There are many other threads on this subject on this forum.
The obvious question is not the level of costs ( which look reasonably normal ) but why are you looking to give up a guaranteed monthly payment for your retirement and throw yourself to the uncertainties of the financial markets .Be ready for some sleepless nights !
Of course a Million Pounds seems a lot of money but what actual level of final salary payment are you thinking of giving up ?0 -
Madeinireland wrote: »Hi,
I went to see an advisor today from True Potential on my final salary pension. He is going to get a transfer value from my pension administrators (This is a BT pension - sectionby way of exploring that as one possible option.
I’m aiming to see a full IFA advisor (the one from True Potential is restricted) as well in next couple of weeks.
Opinions welcome.
Thanks...
Do you realise how tight the timescale is from getting a transfer value to taking a decision? The amount of ground an IFA has to cover is considerable - and 3 months is barely enough to do the job properly. Suggest you ask TP to hold off getting the transfer value until you've made a decision on who is going to advise you - and they can then apply on your behalf.0 -
Do you realise how tight the timescale is from getting a transfer value to taking a decision? The amount of ground an IFA has to cover is considerable - and 3 months is barely enough to do the job properly. Suggest you ask TP to hold off getting the transfer value until you've made a decision on who is going to advise you - and they can then apply on your behalf.
And you might only get one CETV free a year, after which a fee can be charged.Not an expert, but like pensions, tax questions and giving guidance. There is no substitute for tailored financial advice.0 -
Hi,
Thanks for your responses. The value of pension being given up will be in the region of £30k.
With regard to the tight timescale... if I get a transfer value now (which is going to take a few weeks anyway) I presume any IFA can advise on that valuation so don’t quite understand why I can’t just let them get the valuation done at this stage while I get the right adviser if indeed it’s not them.
I understand a further valuation would be chargeable (apparently £150) so I guess I can just take that hit if required.
Thanks...0 -
Also - As to why I would give up that level of benefit....
I also think there are good benefits in doing it - such as inheritance, flexibility on income, removal of danger of company going bust etc.
I’m not saying that I will do it just yet but I do feel I need to explore the option at least. My family history does not suggest I will live a very long life so I feel it may be a risk worth taking f the terms are good.
Thanks...0 -
£30k per annum pension = worth > £1M?
Does it have good benefits on top of the £30K? is it available at an early retirement age?
If you did go ahead with a transfer (see comments above on that)
That is a HUGE fee for the IFA!
(And I assume if the pension stays where it it - that's probably 0 fee for the IFA.)
For the IFA - £5000 initial fee plus at least £5000 per annum until you run out of money or die!
Maybe more than that if your fund grows.
Plus very high platform and fund costs of at least £12,000 per annum.
I don't know why the IFA thinks you should pay ANYTHING LIKE that %age for the platform and fund fees.
Over 10 years that's £170,000 of fees! and that doesn't include the effect of what happens if the fund value rises!
Personally, if I was to go ahead with the transfer I would be looking to decimate those fees and costs (this is MSE after all).0 -
If you did go ahead (see comments above on that)
That is a HUGE fee for the IFA!
(And I assume if the pension stays where it it - that's probably 0 fee for the IFA.)
For the IFA - £5000 initial fee plus at least £5000 per annum until you run out of money or die!
Maybe more than that if your fund grows.
Plus very high platform and fund costs of at least £12,000 per annum.
I don't know why the IFA thinks you should pay ANYTHING LIKE that %age for the platform and fund fees.
Over 10 years that's £170,000 of fees! and that doesn't include the effect of what happens if the fund value rises!
Personally, if I was to go ahead with the transfer I would be looking to decimate those fees and costs (this is MSE after all).
If anything, I think its pretty low. The PI cover would be very expensive.Not an expert, but like pensions, tax questions and giving guidance. There is no substitute for tailored financial advice.0 -
Pension_Geek wrote: »If anything, I think its pretty low. The PI cover would be very expensive.
The initial £5K seems "fine" - but that's the only thing - not the ongoing or fund costs.0 -
He said the normal initial fee is 3% but on such a large fund they would cap to £5000.
On reflection I agree the fees do look high to me - but I’m not knowledgable about the work level and risk that they are taking. I probably won’t take the risk but I’m still going to investigate.
The other benefits are that it’s index linked (CPI) and 50% spouse pension - she is 6 years younger than me. It would be payable when I want to take it as I’m 58 anyway.
Thanks...0 -
You can turn this on it's head and find an annuity checker on google.
Put in your age , what income you want ( £30K) , that you want it to increase by CPI and a 50% spouse pension . You might be surprised by the amount of money they would want to set up an annuity on those terms . probably at least £1 million …..0
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