Simple advice needed

jonesy103

OK. So I’ve spoken to an IFA and I’m astounded by how much they want to charge for their advice
With a total pension fund of around £170k, they’re suggesting a fixed fee of £3850 approximately 2.26% plus an annual fee of £1,211. This is the first feedback I’ve had and I think this is a ridiculous amount but am I out of touch ?

cfw1994

jonesy103 wrote: »

OK. So I’ve spoken to an IFA and I’m astounded by how much they want to charge for their advice
With a total pension fund of around £170k, they’re suggesting a fixed fee of £3850 approximately 2.26% plus an annual fee of £1,211. This is the first feedback I’ve had and I think this is a ridiculous amount but am I out of touch ?

Mmmmmm.
I *believe* it is common for around a 3% fixed fee and anything from 0.5-1+% annual charge....so your numbers probably fall in the ball park.

All I can say is “this is why a lot of folk here manage things themselves!”: it always sounds like a big chunk of your money when they aren’t guaranteeing any particular returns!!

jonesy103

Yes a big chunk without any details of ‘potential’ returns or the pitfalls. And what about the ongoing fees, are they assuming that interest on the investment will cover and annual fee and provide growth in my pot ?

xylophone

https://moneytothemasses.com/saving-for-your-future/pensions/the-best-cheapest-sipps-low-cost-diy-pensions