DB Pension transfer - IFA costs

SonOf

There's no particular reason why the PI costs couldn't be itemised, if it's included in the hourly rate then it must be able to be split out.

a) you don't see businesses segment their costs to clients. Businesses work out their total costs and then price their goods and services. You don't see restaurants listing the cost of ingredients, follows by the amount of gas/electric they use, the business rates they pay, their insurance, wages etc.
b) The premium is set at the outset of the year. The advice firm won't know in advance if they are going to do 20 cases or no cases that year. So, if they declared an x% share of the premium, it is almost certainly not going to be accurate by year-end.

This sums up exactly how IFAs work.

No it does not. It was context and you have taken one bit in isolation and ignored the rest of what I have said. What is really sums up is your petty approach to posting on this site.

On Friday the markets dropped in one day the equivalent of that fee. The person is going to be invested for 25-35 years (probably a lot longer when it's passed on to beneficiaries). However, if the person spends too long looking for alternatives, they may get the fee down but the delay may actually cost them more. I had already said that the fee is too high and can be improved on. I will say it again if I thought it would stop you trolling but we know that is never going to happen.

[Deleted User]

"The main concern I note from representatives of the financial services industry on this forum is to justify and normalise the practices of the financial services industry."

Qed above.

Always managing the poverty of expectation that is the legacy of the financial services industry.

"Ten grand bad, five grand good." - because, we're dealing with big figures.

And if you dissent, you're a troll.

Suemac2a

@ xylophone See above ".....but does highlight that not all people actively seeking transfers want/need increased drawdown - they just don't want an annuity, want to maximise TFLS opportunities and want to eliminate a tangible risk of the solvency of the company provider. "

eskbanker

Suemac2a wrote: »

Strangely enough I dont relish handing a large ten figure hard-earned sum to a stranger for 25 hours work and guarding against ongoing fees when there are meant to be more cost-effective solutions available.

If you're talking about billions, why not just buy an IFA company?

[Deleted User]

Assume eskbanker played the w**ker card just to try and get a dissenter banned.

Suemac2a

@ eskbanker LOL, my bad. Clearly I have been influenced by the 'drop in the ocean' minimisation of fees equivalent to a year's wages for many people. I am sure someone will be along shortly to say my obvious failure to grasp basic maths proves my financial incompetence. 😀

Thrugelmir

ZingPowZing wrote: »

And if you dissent, you're a troll.

Grown ups discuss and debate. Don't get over excited when somebody holds a differing opinion. Nor is there just black and white. The balance is often to be found somewhere in the middle.

AnotherJoe

Suemac2a wrote: »

AnotherJoe

I said "upside"not cost-benefit. Upsides would include control, responsibility, convenience, accessibility, transparency as well as *possibly* better financial outcomes in short, medium or longer term.

Traversing a minefield would not be an upside.

Strangely enough I dont relish handing a large ten figure hard-earned sum to a stranger for 25 hours work and guarding against ongoing fees when there are meant to be more cost-effective solutions available. Given the forum we are on here, that can't be a surprise.

I was a business consultant and I would have been laughed out the door if I had asked for an arbitrary 3% of the company's assets fgs. Even estate agents are twigging that doesn't wash.

The fact that a transfer would still be the correct thing to do after extortionate fees were factored in does not make those fees more palatable or more justified.

Happy, I will post here if we have better luck.

You don't have to transfer the sum and leave it in their hands indefinitely , just for (figuratively) ten minutes,
Once it's been transferred from the DB then move it to a SIPP

[Deleted User]

AnotherJoe wrote: »

You don't have to transfer the sum and leave it in their hands indefinitely , just for (figuratively) ten minutes,
Once it's been transferred from the DB then move it to a SIPP

And this is a good representation of the broken market of DB transfers.

Even reps from the financial services industry propose a "work around.".

[Deleted User]

Suemac2a wrote: »

@ eskbanker LOL, my bad. Clearly I have been influenced by the 'drop in the ocean' minimisation of fees equivalent to a year's wages for many people. I am sure someone will be along shortly to say my obvious failure to grasp basic maths proves my financial incompetence. 😀

Very good.