Independent Advice

lee159

Hello All,

I was recently approached by Reeves Independent and was invited to a presentation show casing their services. This seemed to a result of a 'trawl' carried out by them through LinkedIn, as I have never approached them before.

At present I have four pension schemes, an HM Armed forces pension from my previous service with a tax free lump sum due at aged 60 (I am 50 years old at present). I also have three other pensions with my present employer, with whom I have been employed by for 20 years.  Two of these are dormant (one a DB that ceased some time ago and a second DC that ceased when the company moved to a new pension provider.) The third scheme is active and being contributed to.

Initially the company I work for held presentations by the pension provider at the work place but all this has dried up. Now I receive a glossy brochure once a year, suggesting the pension scheme is in good health as a whole and not necessarily relating to my individual contributions.

Therefore my question is, are Reeves Independent worth considering to 'manage' my pension plans as they stand (I have read here that 2% management fee, is rather excessive) or do I need to have my pensions managed at all? Is there someone else out there worth considering or approaching for advice.

The small print for anything always states to 'seek independent advice' but with whom do you go to, in order to gain this advice?

Regards,

Lee159

dunstonh

Initially the company I work for held presentations by the pension provider at the work place but all this has dried up. Now I receive a glossy brochure once a year, suggesting the pension scheme is in good health as a whole and not necessarily relating to my individual contributions.

That wording suggests it could be as defined benefit scheme rather than a defined contribution scheme.   However, some of your wording suggests the opposite.

Therefore my question is, are Reeves Independent worth considering to 'manage' my pension plans as they stand (I have read here that 2% management fee, is rather excessive) or do I need to have my pensions managed at all? Is there someone else out there worth considering or approaching for advice.

You either manage them yourself or you get someone to do it for you.     That could be using a simple multi-asset fund. It could be you running the portfolio selection or using an IFA to build the portfolio for you.    There are other ways, such as using a DFM, but they tend to get expensive and usually dont offer any value for money.

The small print for anything always states to 'seek independent advice' but with whom do you go to, in order to gain this advice?

There are very many firms with different business models.     There is no 100% rule but its often worth avoiding firms with wealth management in their name or tagline.  These tend to be expensive.    It's also worth being on guard with firms that run seminars and run aggressive marketing.   That can be expensive to do and consequently the charges are often higher.    Most firms are smaller localised firms that do little or no advertising and rely on local reputation.  Smaller firms tend to have very low staff turnover.  Larger firms can suffer higher staff turnover.  So, it can be difficult to build up a relationship with an adviser who may change every year.

Linton

 As far as I can see, assuming it's the same company,  Reeves Independent are on the FCA register as an authorised IFA based near Newcastle.  Website: https://www.reevesifa.com/.  They have 9 registered/certified staff, so not a small company. According to Companies House they were set up 2 years ago under that name but had a previous existance as a Wealth Management company.  The FCA registration dfates from Jan 2020.

But you should be wary about any financial company that approaches you directly.  A well-established good IFA should not need to cold call.  So I think you would be better off finding say 3 small local IFAs possibly recommened by friends or family. You can then arrange a free introductory chat (post Covid) and see which, if any, you think you will find it easiest to work with.  It is important that there is personal rapport.

LHW99

Any pension that is defined benefit doesn't really need "managing" anyway, as it is a promise of future income, not an actual pot of money (and would be deferred, not frozen most likely).

Silvertabby

Cold callers should always be given the cold shoulder.

Albermarle

As above DB schemes do not need managing and any IFA could have no influence on them .
Also an IFA can not normally manage an active workplace DC pension as far as I know .
Also to be pedantic your older DC scheme is not dormant . The investments within it will be growing ( hopefully) and the provider will be charging you . Just because there are no new contributions going in does not mean it is dormant.
From the info you have provided,  it does not look like you really need the services of an IFA , although would be worth you looking at the investments in the two DC pensions , if you have done so already .

lee159

Thank you all for your comments, I believe you have all confirmed what my initial thoughts were with respect to 'being asked'. I treat unwanted emails and texts as 'spam' and looking at the approach, from Reeves, this is in a similar manner.

I apologise for the incorrect terminology I have used with respect to my pensions. I realise that my DB is still 'growing' in line with any pay increases, as is the older DC scheme, although isn't being contributed to it still has a value and does seem to be increasing, at a modest rate.

I contribute as much as I can to my active DC pension scheme via AVC's and the company I am employed by, does seem to be more generous than some.

All I need to do now is make it retirement! 17 years and counting to go....subject to change of course!