Ifa charges

iwblue

Hello, I've used an IFA, Flying Colours, for a couple of years, have no problems with the service.  My question is the charges, I've paid 0.54% on the value of my pension pot. I've just been informed the charge will increase to 1%. Is this industry standard, it does seem a big increase approx 80%? Many thanks 

AnotherJoe

From comments I've seen here, it can vary from half to one per cent depending how much is being managed (with an IFA, FA's seem to charge more)
The more being managed, the lower towards half a percent it's likely to be. 
so, how big is your amount under management? 

Edit: is that just the IFA fee? There will also likely be platform fees and fund fees.  Does your IFA fee include any of those, perhaps the platform? Or are they additional ? (Fund fees are very likely to be additional) 

iwblue

Just the ifa fee, I don't use a platform, and the fund is managed via a pension provider those fees are separate... Under £50k

bigadaj

So their charges are probably in line with industry standard as they say. You could manage this yourself and save the fee of course.

dunstonh

I've paid 0.54% on the value of my pension pot. I've just been informed the charge will increase to 1%.

0.5% is the dominant figure used by IFAs.   However, increasingly you are seeing a tiering of the charges with 1% used on smaller values and then tiering down to 0.5% on higher values.   IFAs generally deal with larger funds.      

You mention £50k.   So, 1% would be typical on that amount.  Whereas £500k would be 0.5%.

Albermarle

I think you have enjoying a rather low fee considering the size of your pot .
So I think you have to either accept the increase or stop using an advisor , as very unlikely you will find one charging less than 1%

[Deleted User]

What is the enjoyment you are getting from your IFA? How did the second year service differ from the first, or the third?