Pension adviser charges

MNrhubarb

Hmm, no tariffs on their website and my financial adviser is listed as working for them. In fact, he's the director. 
It all rests on the promised email of breakdown of costs. I will let you know what he intends to charge. If it is just for a year then I can cope with that to save the hassle of moving to a different agent. If it's not stated then I'll question further.

Albermarle

I am now in contracted employment and have a pension there too, but as I've only been with them for 4.5 years there is not much in that pot. I didn't see any reason to stop my private pension as I intend to take a staged retirement. That is, take out of my private pension from the age of 60 or 62, then out of my workplace pension at 65 then state pension at 67.

Presuming they are similar type of pensions ( and they probably are ) in theory it does not matter much which one you contribute to , or both . As long as you contribute enough at work to get the maximum ( free) employer contributions . Unless your employer operates a salary sacrifice system for pension contributions . In which case you might be better off with increased workplace contributions.

Another point to ponder is that you pay an IFA to manage your private pension and yet your workplace pension manages itself without an IFA . Food for thought maybe...….

MNrhubarb

Albermarle said:

Another point to ponder is that you pay an IFA to manage your private pension and yet your workplace pension manages itself without an IFA . Food for thought maybe...….

If I got shut of the IFA however, would my pension portfolio simply continue?
The workplace pension is under a civil service scheme that I cannot access until I am 65, whereas the private one can be accessed earlier. I am paying 11% of my salary into my work one but am looking to get this changed to nearer 20%. 
Thing is, no-one has ever explained to me how much I can save to get maximum employer/government contributions. And I feel too stupid to ask the basic questions. 

dunstonh

If I got shut of the IFA however, would my pension portfolio simply continue?

It would continue as it is but would not be updated or rebalanced.  You would take on that responsibility.

Thing is, no-one has ever explained to me how much I can save to get maximum employer/government contributions. And I feel too stupid to ask the basic questions. 

It is really important for a client and adviser to have good communication in both directions.   You get so much more out of it if you just tell the adviser what is on your mind.  It will clear many things up for you and make you feel better.     You are paying the adviser to take the admin, knowledge and stress & strain away from you.  However, at the moment, that does not appear to be happening.  

Ask the questions.  Don't be afraid.   advisers generally prefer dealing with clients that engage and say when they do not understand or want further clarification.   Advisers summarise conversations in their audit trail and it can make for a much better quality client file when there is more personalised detail about what was talked about.   So, really do not be afraid of asking.

Hmm, no tariffs on their website and my financial adviser is listed as working for them. In fact, he's the director. 

Just ask him to confirm.  If you feel conscious about asking, then say you forgot what he said and just want to remember.   If he indicates that the charge will continue beyond 12 months then report back here what you were told as that would be a breach of rules.     However, there are a couple of exceptions.  One of which is where it is not an IFA but an FA and they are using their own in-house product.  If he is an IFA then it should not be possible.

Albermarle

The workplace pension is under a civil service scheme that I cannot access until I am 65, whereas the private one can be accessed earlier. I am paying 11% of my salary into my work one but am looking to get this changed to nearer 20%. 

Your civil service scheme is presumably a final salary scheme , so totally different ( and better ) than your other pension.

See if this link helps your knowledge :

https://www.pensionsadvisoryservice.org.uk/

barnstar2077

I don't like the way this guy has made you feel, and it sounds like he is taking advantage of your good nature.  As has already been said, you should be able to feel comfortable talking to him.

It can't hurt to talk to a few different IFAs in your area and see what your options are.

One option might be for you to transfer your current pension somewhere else (assuming that you do not have direct control of it at the moment) and just ask an IFA to help you with fund selection initially for a flat fee.  For such a small pension there is no need to be paying someone a percentage in my opinion.

german_keeper

"He now says that they will take around 2% from my direct debits (he assumed I knew about this, but I admit I have not noticed any charges from my direct debits)"

This is't just a NEST pension is it? NEST charge 1.8% for each payment don't they? So that isn't going to the IFA but to the pension provider.

MNrhubarb

Thanks all. No my civil service pension is not a final salary pension. It's part of the nuvos scheme.
He is an IFA and my pension is invested in Royal London.
So far I have not heard back from him so am waiting for further clarification and will report back. Thanks for all your help. It's so much easier to ask on a forum!

JoeCrystal

MNrhubarb said:

Thanks all. No my civil service pension is not a final salary pension. It's part of the nuvos scheme.

It is still a defined benefit scheme rather than a final salary pension scheme then.

MNrhubarb

I have no idea what that means Joe but according to my latest report I'm due the princely sum of around £3k pa once I retire at 65 providing I haven't taken out a lump sum. That's the most important figure I look at when considering how much I would need to live on if I were to retire earlier than the state age of 67.