Advice as trying corporate small pension pot. SFL wealth management are advising

paul2louise

I have 2 small Aviva pensions, one is worth about 17k and the other about 4k. I have been trying to source an advisor to help with small pots. I used the onlinemoneyadvisor and a company called SFL wealth management have taken my details and requirements to source a better pension choice for me. They are using Vanguard and have a medium risk pot with flexibility designed for me. My average weighted charges for my 2 pots is 0.86% and they have got a new pot with 0.5% charges. After discussion with SFL they charge 5% fees for the transfer and 1% annual ongoing service proposition. I told my OH this and he thinks they are charging too much. He said it should be between 2-3%. He has a much larger pot so is there a higher charge because it's a smaller pot. Do I need the 1% service proposition. 
Are you able to barter on charges, is there anyone else anyone can recommend in case I want to get a second opinion. 

Thanks 

AlanP_2

For your size of pot the %'age charge is going to be high to cover their costs and profit margin.

5% = £1050, so in monetary terms not a lot. I doubt if there offering is designed for you specifically, more likley their deafult medium risk offering

Have you looked in to opening a Vanguard SIPP and moving them yourself to something like VLS60? Easy to do, zero to transfer and very low ongoing charges.

Alternatively, if you don't feel confident about that, how about one of the Robo options like PensionBee? Charges will again be a lot less than you have been quoted and they offer a range of "pre-packed" portfolios at different risk (volatility) levels.

dunstonh

 I told my OH this and he thinks they are charging too much. He said it should be between 2-3%. 

The fund is just £21k.    Any percentage figure needs to be in context with the amount.  Their figure is not bad for just £21k.   However, it would be very high if it was £100k (its possible they taper their fees with the amount - a lot do).

Do I need the 1% service proposition. 

No.  Not on 21k in a multi-asset fund.

Are you able to barter on charges, is there anyone else anyone can recommend in case I want to get a second opinion. 

Realistically, you are several hundreds of thousands of pounds away from being able to negotiate on better charges.   And many adviser firms will automatically taper their charges as you get more without the need to haggle.

paul2louise

AlanP_2 said:

For your size of pot the %'age charge is going to be high to cover their costs and profit margin.

5% = £1050, so in monetary terms not a lot. I doubt if there offering is designed for you specifically, more likley their deafult medium risk offering

Have you looked in to opening a Vanguard SIPP and moving them yourself to something like VLS60? Easy to do, zero to transfer and very low ongoing charges.

Alternatively, if you don't feel confident about that, how about one of the Robo options like PensionBee? Charges will again be a lot less than you have been quoted and they offer a range of "pre-packed" portfolios at different risk (volatility) levels.

I haven't really looked at doing it myself as I wasnt sure if it was worth messing with my 2 Aviva pensions and I don't have much experience of pensions. I thought I would take some free advice and see what they suggest. I suppose now I know abit more I could try and look around and compare. 

paul2louise

dunstonh said:

 I told my OH this and he thinks they are charging too much. He said it should be between 2-3%. 

The fund is just £21k.    Any percentage figure needs to be in context with the amount.  Their figure is not bad for just £21k.   However, it would be very high if it was £100k (its possible they taper their fees with the amount - a lot do).

Do I need the 1% service proposition. 

No.  Not on 21k in a multi-asset fund.

Are you able to barter on charges, is there anyone else anyone can recommend in case I want to get a second opinion. 

Realistically, you are several hundreds of thousands of pounds away from being able to negotiate on better charges.   And many adviser firms will automatically taper their charges as you get more without the need to haggle.

So I could probably let them make the transfer, and drop the service proposition. I know alot of advisors won't waste their time on small pots so it's not like I have lots of options. I wasn't sure if I could work something out myself a bit cheaper now that I know there are better options out there. Just not sure if I am better to let an expert do it for me

Albermarle

I think it is quite unusual that you could find a financial advisor at all with only £21K.
What is actually wrong with the Aviva pensions? Do you know what they are invested in and the charges ?

paul2louise

Albermarle said:

I think it is quite unusual that you could find a financial advisor at all with only £21K.
What is actually wrong with the Aviva pensions? Do you know what they are invested in and the charges ?

The SFL advisor has told me that the 17k is a mixed investment over 3 funds and over the last 5 years it has done 30% so average 6% per annum, the 4k one is split between a fixed fund that has done 33% and a global equity which has done 29.8%. so again about 30% over 5 years. She is proposing a vanguard option which has done 53% with lower charges and much more flexibility. That I can view online
I know nothing of what my Aviva pensions are doing as I  just get an annual statement

MallyGirl

Maybe do a bit of research first - it sounds like you might be trying to fix something that may not even be broken.

paul2louise

MallyGirl said:

Maybe do a bit of research first - it sounds like you might be trying to fix something that may not even be broken.

That is what I am trying to do. But I don't know how to get help if you don't take advice from a financial advisor. Aviva won't tell me anything about my current pension funds unless I pay for an advisor. As my pot is small not many will waste their time helping me either. I want something that I can see perform and I have a bit of control over. The 2 pots I have with Aviva are not flexible and I have no idea how they are doing. 

barnstar2077

paul2louise said:

MallyGirl said:

Maybe do a bit of research first - it sounds like you might be trying to fix something that may not even be broken.

That is what I am trying to do. But I don't know how to get help if you don't take advice from a financial advisor. Aviva won't tell me anything about my current pension funds unless I pay for an advisor. As my pot is small not many will waste their time helping me either. I want something that I can see perform and I have a bit of control over. The 2 pots I have with Aviva are not flexible and I have no idea how they are doing. 

Is it not possible to view your pots with Aviva online?  My company pension is with them and I am able to do so.

Albermarle

Aviva won't tell me anything about my current pension funds unless I pay for an advisor.

Are you 100% sure about that as does not seem right .

Often pension companies will warn you that you should take financial advice , just to cover their backsides , but you don't have to .