Cost of setting up a pension?

keljnr

I've recently visited an IFA. Good meeting, and the cost of setting up a pension (with them finding best pension for me) is a one off fee off £500. Does this seem a fair price? 

This is my first pension, so I'm not sure if this is the 'going rate' in Lancashire. 

I know you are able to setup so the adviser takes a percentage, and you get on going advice... But as it's a simple, small pension, they said I probably won't need any ongoing. 

Is £500 fair?
Thanks

Brynsam

Assume you aren't employed and thus likely to be able to join an employer's scheme?

£500 sounds fair depending on your requirements. 

JoeCrystal

I paid £300 ten years ago to set up a personal pension with an IFA. So £500 fees sound very fair for a one-off transaction. I would be interested to see what pension provider and the fund the IFA will recommend.

keljnr

Thanks guys! Just wanted to double check before going ahead! I'm self employed, so cannot take advantage of workplace pension. 

Albermarle

keljnr said:

Thanks guys! Just wanted to double check before going ahead! I'm self employed, so cannot take advantage of workplace pension. 

Not saying you should but if you forgot about the IFA , the cost of setting up a pension your self is zero .

dunstonh

£500 is our minimum fee as well.    So, obviously, I am going to say its a fair price too.

Not saying you should but if you forgot about the IFA , the cost of setting up a pension your self is zero .

Although it doesnt mean that the pension selected by the OP under DIY would be cheaper.  Could be but just look at how many people are piling into more expensive DIY pensions.

Albermarle

dunstonh said:

£500 is our minimum fee as well.    So, obviously, I am going to say its a fair price too.

Not saying you should but if you forgot about the IFA , the cost of setting up a pension your self is zero .

Although it doesnt mean that the pension selected by the OP under DIY would be cheaper.  Could be but just look at how many people are piling into more expensive DIY pensions.

Yes the OP might be better off in the end paying £500 ( especially if his financial knowledge is weak )  but just was pointing that the actual set up is normally free if you DIY on line, as the OP might not be aware of that.