PENSION WISE ANY GOOD.

Dox

ffacoffipawb said:

clive0510 said:

You've got to be over 55 to make a PensionWise appointment (it's free). 
ok thats the road I'm going to because all I'm doing is looking at columns of figures here. thanks for the advice.and it was free!

You can access pensionwise from 50 I believe, certainly before age 55.

50 it is for a meeting (or whatever alternative there is at present): https://www.pensionwise.gov.uk/en

dunstonh

luvchocolate said:

I had a meeting with them a couple of years ago. I understand they should not give advice but the lady I saw actually said "if I were you.......""

That is a breach of their own rules.   It is also very dangerous as pensionwise staff are not trained to know quirks in product offerings, market pricing etc.    Plenty of times we have seen people after pensionwise have seen them and the outcome we recommended was different to that the individual originally thought was best for them because of things like individual taxation, other assets and savings.   I think the last one which got different information was where he was told by pensionwise he couldnt use the small pots rule as he had over £10k in the pension.  However, the provider in question had the ability to segment the pension into separate pots and he was able to use the small pots rule.   Pensionwise was correct generically.  But wrong after retail market quirks were taken into account.
I compare it to sitting an exam.  The text book answer for the exam is often different to the real world answer.    
The text book answer may be right much of the time but can be wrong some of the time.

fred246

My private pension started as a FSAVC. IFAs got massive commission from them. I think the whole of my first year pension contributions went to the IFA. IFAs were just desperate to sell them. I paid for about 7 years and then my IFA said. "Are you still paying into that? Just stop it's rubbish." No reason given. It languished for about 18 years just paying trail commission to various IFAs. It was appallingly invested. I know the resident IFA doesn't like me telling stories about my dealings with IFAs. IFAs primary motive is always lining their own pockets. The customer's needs come second.

Dox

fred246 said:

My private pension started as a FSAVC. IFAs got massive commission from them. I think the whole of my first year pension contributions went to the IFA. IFAs were just desperate to sell them. I paid for about 7 years and then my IFA said. "Are you still paying into that? Just stop it's rubbish." No reason given. It languished for about 18 years just paying trail commission to various IFAs. It was appallingly invested. I know the resident IFA doesn't like me telling stories about my dealings with IFAs. IFAs primary motive is always lining their own pockets. The customer's needs come second.

Don't you feel you have any responsibility for checking what you're investing in, what the charges are and how the fund is performing?

zagfles

They won't be able to give advice as such, but they can give you an idea of what your options are. It's free, so may as well use it. Bit like MSE boards!

fred246

Dox said:

fred246 said:

My private pension started as a FSAVC. IFAs got massive commission from them. I think the whole of my first year pension contributions went to the IFA. IFAs were just desperate to sell them. I paid for about 7 years and then my IFA said. "Are you still paying into that? Just stop it's rubbish." No reason given. It languished for about 18 years just paying trail commission to various IFAs. It was appallingly invested. I know the resident IFA doesn't like me telling stories about my dealings with IFAs. IFAs primary motive is always lining their own pockets. The customer's needs come second.

Don't you feel you have any responsibility for checking what you're investing in, what the charges are and how the fund is performing?

It was very difficult before the internet to work out what all the terms meant. Basically the IFAs got massive amounts of commission for minimal work. They just had to find someone to sell the products to. As a young worker I was plagued with them. They always tried to sell FSAVCs, life insurance, income protection, critical illness and endowment mortgages. They could make a few thousand if you signed up for them all. Once you signed up you never saw them again because their commission was guaranteed for years into the future. When I signed up for the FSAVC that wasn't the best option for me. The best option would have been paying extra into the pension but the IFAs didn't mention that because they would have got no commission from that. So you assume the IFA has invested it appropriately. The commission used to reduce gradually so as I say I think all the first years payments went to the IFA. When I took out a mortgage with her she said stop paying into the FSAVC. I said I can afford both and payed the FSAVC for another couple of years. The next time I saw her she seemed really upset that I was continuing to pay. She blurted out "it's a load of rubbish. stop paying it." I was a bit shocked seeing she had sold it me. You can't withdraw it because it was a pension. The original IFA retired. IFAs won't look at small pension pots. They want something thay can take a few thousand for setting it up and then charge an annual fee of at least a few hundred for doing very little. At least now they have to make some sort of effort of doing an annual review.

dunstonh

fred246 said:

 I know the resident IFA doesn't like me telling stories

The problem is that the stories are often fiction. 

As a young worker I was plagued with them.

Yet most consumers have never used an IFA or ever been approached by one.  Plenty have been approached by FAs.  Especailly back in the old home service days.

Once you signed up you never saw them again because their commission was guaranteed for years into the future.

No it wasnt.

hen I signed up for the FSAVC that wasn't the best option for me. The best option would have been paying extra into the pension but the IFAs didn't mention that because they would have got no commission from that.

And what was the outcome of your complaint?

The commission used to reduce gradually so as I say I think all the first years payments went to the IFA.

Back in the commission days, the vast majority of commission was upfront only.  Not drip.   Some life assurance plans would allow drip.

fred246

IFAs used to make their money from commission. So they had a product that made them rich quick IF they could find someone to buy it. So IFAs would search out people to buy their products. It's called marketing and a lot of IFAs used to do it. They were very persistent and irritating at the time. Trail comission is still being paid to IFAs for doing nothing whatsoever. When commission was banned IFAs were upset so they now do an annual review. You pay a fortune for starting a product and then IFAs insist on annual reviews where they charge hundreds of pounds for doing very little.

dunstonh

IFAs used to make their money from commission. So they had a product that made them rich quick IF they could find someone to buy it. So IFAs would search out people to buy their products.

I swear you don't know the difference between an FA and an IFA.

It's called marketing and a lot of IFAs used to do it. 

Generally IFAs have not been big at marketing.  It was the FAs and the home service companies that were big on that.

They were very persistent and irritating at the time. 

Trail comission is still being paid to IFAs for doing nothing whatsoever. 

Technically yes it is.s    Direct with fund house investments did continue to be paid.  And the £1.80 each month really makes a difference.  However, for everyone else, the commission ended on platform-based investments back in 2013 and is not continuing to be paid.

When commission was banned IFAs were upset so they now do an annual review.

As you are not an IFA and have not used one, you are not in a position to say if they were upset or not.  For most it was a continuation of what was already happening.    

You pay a fortune for starting a product and then IFAs insist on annual reviews where they charge hundreds of pounds for doing very little.

Wrong. A bit like most other things you say.

fred246

So you had a form. All it needs is a customer to put their details on it and sign it and you have an instant payment of £500. So all the FAs were out looking for customers while the IFAs sat on their bottom waiting to be contacted? I have used IFAs in the past but am unlikely to ever use one again based on previous experience. You read it time and again on this forum. People are charged a fortune to set up investments and then the IFA wants them to pay an ongoing annual fee for very little. Customers can refuse it but the IFAs make them feel very uncomfortable to refuse.