IFA Costs

redscotlfc

Hi, Hope this is the correct forum to post this in.
I am just starting my retirement planning and I am looking to get some advice on pension drawdown from an IFA so I have arranged initial meetings with a few local IFA's. I am aware that there will be costs involved both for setting up the drawdown pension and ongoing but I am unsure of what percentage figures to expect. The 1st IFA has quoted 3% and 0.75%, are these average figures or very high or very low? Can anyone give examples of what I should be looking for?

Aegis

redscotlfc wrote: »

Hi, Hope this is the correct forum to post this in.
I am just starting my retirement planning and I am looking to get some advice on pension drawdown from an IFA so I have arranged initial meetings with a few local IFA's. I am aware that there will be costs involved both for setting up the drawdown pension and ongoing but I am unsure of what percentage figures to expect. The 1st IFA has quoted 3% and 0.75%, are these average figures or very high or very low? Can anyone give examples of what I should be looking for?

Although there's a link between the size of the portfolio or transaction and the level of risk to the business, it's not a direct proportion. therefore it's very difficult to work out from 3% initial and 0.75% ongoing whether you're getting a decent quote.


If you're talking about £10,000, it's a great deal at £300 for drawdown advice, while at £1 million you're talking about £30,000, which is far too much. Ditto on the annual fees, where it will depend on what service you're getting and how much it costs you in actual money.

SeniorSam

You don't actually need an IFA to transfer pensions to a Sipp, unless you need guidance on the sort of investments to use, which is most important. Hargreaves Lansdown have loads of information that they can send you and they are very good a talking with people like yourself about these problems. Sipps are not too difficult to understand, but dont plan to take all your tax free cash initially, as unless you need to spend it straight away, it's best to leave it growing in the Sipp and when you need money, transfer part to drawdown and draw from that.

redscotlfc

There is approximately £150000 in my fund