Transfer DB pension

TransferDB

Albermarle said:

TransferDB said:

GOOD NEWS! The IFA DB transfer report is now done and 100% approved and the IFA has recommended Royal London as the best option for a drawdown pension in the Governed Portfolio 2 (a low risk fund). I was a bit annoyed as he never discussed a choice (as promised) before doing the report and to alter it would waste time, which we don't now have. Apart from that, he is advising me to continue having him as a IFA at a cost of 0.5% (almost a £1,000 a year) as he reckons I won't actually be able to easily adjust or increase pay-outs from the fund (without IFA approval or advice) and that Royal London may make it difficult too. I feel in the first year I may not need advise either as the monthly pension will be adequate. I need to sign off the report on Monday afternoon so I need some advice as to whether keeping the IFA on would be prudent?    

Royal London normally only work via advisors and not direct with the public. I think you can get access to the pension info via the website, but for most things you have to go via your advisor.
So to be able to fully access and operate the drawdown pension yourself , you would need to go with a different provider that is happy to deal with Joe Public directly ( of which there are many ) . The fact you have a positive recommendation means you should have no trouble transferring to any provider you like.
Other providers will have a fund available similar to the RL one suggested . Either their own , or one available in the wider market . 

Should I go on a comparison site and try to find alternative providers or just ask the IFA to source one that allows me control independently (he said AEGON, Standard Life and the Pru were on his list of options although their charges were a lot higher)? 

TransferDB

Dazed_and_C0nfused said:

he is advising me to continue having him as a IFA at a cost of 0.5% (almost a £1,000 a year) as he reckons I won't actually be able to easily adjust or increase pay-outs from the fund (without IFA approval or advice) and that Royal London may make it difficult too.

That comes across as though you are being held to ransom?

Yes it feels a bit like that TBH - in fact we had an email exchange + phone call from him that got a bit heated in the wording from my end...

Albermarle

TransferDB said:

Albermarle said:

TransferDB said:

GOOD NEWS! The IFA DB transfer report is now done and 100% approved and the IFA has recommended Royal London as the best option for a drawdown pension in the Governed Portfolio 2 (a low risk fund). I was a bit annoyed as he never discussed a choice (as promised) before doing the report and to alter it would waste time, which we don't now have. Apart from that, he is advising me to continue having him as a IFA at a cost of 0.5% (almost a £1,000 a year) as he reckons I won't actually be able to easily adjust or increase pay-outs from the fund (without IFA approval or advice) and that Royal London may make it difficult too. I feel in the first year I may not need advise either as the monthly pension will be adequate. I need to sign off the report on Monday afternoon so I need some advice as to whether keeping the IFA on would be prudent?    

Royal London normally only work via advisors and not direct with the public. I think you can get access to the pension info via the website, but for most things you have to go via your advisor.
So to be able to fully access and operate the drawdown pension yourself , you would need to go with a different provider that is happy to deal with Joe Public directly ( of which there are many ) . The fact you have a positive recommendation means you should have no trouble transferring to any provider you like.
Other providers will have a fund available similar to the RL one suggested . Either their own , or one available in the wider market . 

Should I go on a comparison site and try to find alternative providers or just ask the IFA to source one that allows me control independently (he said AEGON, Standard Life and the Pru were on his list of options although their charges were a lot higher)? 

Pru is also advisor only , with the other two I think it depends which part of them you deal with 
Most retail investors starting a new pension, will go with a SIPP from the likes of Hargreaves Landsdown, Fidelity, interactive Investor, Vanguard etc . The advisor could set up a pension with one of these and then if at some stage you decide to dispense with their services , you can just take over.
Or it is very easy to set up a new pension yourself ( takes 5 minutes ) - the issue is whether you are comfortable to then choose the investments .

dunstonh

I was a bit annoyed as he never discussed a choice (as promised) 

IFAs dont give you choice.   It is their job to present the solution.   The filtering questions in discussion with you should lead to the outcome.     

. Apart from that, he is advising me to continue having him as a IFA at a cost of 0.5% (almost a £1,000 a year) as he reckons I won't actually be able to easily adjust or increase pay-outs from the fund (without IFA approval or advice) and that Royal London may make it difficult too.

Royal London do not make it difficult and they will allow those transactions direct to consumer.  Indeed, we often use RL for transactional clients because they allow it.  (rather than put them with a better provider who only allows transactions via an IFA).

Should I go on a comparison site and try to find alternative providers or just ask the IFA to source one that allows me control independently (he said AEGON, Standard Life and the Pru were on his list of options although their charges were a lot higher)? 

Standard Life (wrap and elevate) but are adviser only.  I believe Pru is as well and you really dont want to be on their software. Same with Aegon.

TransferDB

Albermarle said:

TransferDB said:

Albermarle said:

TransferDB said:

GOOD NEWS! The IFA DB transfer report is now done and 100% approved and the IFA has recommended Royal London as the best option for a drawdown pension in the Governed Portfolio 2 (a low risk fund). I was a bit annoyed as he never discussed a choice (as promised) before doing the report and to alter it would waste time, which we don't now have. Apart from that, he is advising me to continue having him as a IFA at a cost of 0.5% (almost a £1,000 a year) as he reckons I won't actually be able to easily adjust or increase pay-outs from the fund (without IFA approval or advice) and that Royal London may make it difficult too. I feel in the first year I may not need advise either as the monthly pension will be adequate. I need to sign off the report on Monday afternoon so I need some advice as to whether keeping the IFA on would be prudent?    

Royal London normally only work via advisors and not direct with the public. I think you can get access to the pension info via the website, but for most things you have to go via your advisor.
So to be able to fully access and operate the drawdown pension yourself , you would need to go with a different provider that is happy to deal with Joe Public directly ( of which there are many ) . The fact you have a positive recommendation means you should have no trouble transferring to any provider you like.
Other providers will have a fund available similar to the RL one suggested . Either their own , or one available in the wider market . 

Should I go on a comparison site and try to find alternative providers or just ask the IFA to source one that allows me control independently (he said AEGON, Standard Life and the Pru were on his list of options although their charges were a lot higher)? 

Pru is also advisor only , with the other two I think it depends which part of them you deal with 
Most retail investors starting a new pension, will go with a SIPP from the likes of Hargreaves Landsdown, Fidelity, interactive Investor, Vanguard etc . The advisor could set up a pension with one of these and then if at some stage you decide to dispense with their services , you can just take over.
Or it is very easy to set up a new pension yourself ( takes 5 minutes ) - the issue is whether you are comfortable to then choose the investments .

I don't think I am clever enough or have the knowledge to choose the investments myself - I'd prefer a mixed managed fund spread.

TransferDB

dunstonh said:

I was a bit annoyed as he never discussed a choice (as promised) 

IFAs dont give you choice.   It is their job to present the solution.   The filtering questions in discussion with you should lead to the outcome.     

. Apart from that, he is advising me to continue having him as a IFA at a cost of 0.5% (almost a £1,000 a year) as he reckons I won't actually be able to easily adjust or increase pay-outs from the fund (without IFA approval or advice) and that Royal London may make it difficult too.

Royal London do not make it difficult and they will allow those transactions direct to consumer.  Indeed, we often use RL for transactional clients because they allow it.  (rather than put them with a better provider who only allows transactions via an IFA).

Should I go on a comparison site and try to find alternative providers or just ask the IFA to source one that allows me control independently (he said AEGON, Standard Life and the Pru were on his list of options although their charges were a lot higher)? 

Standard Life (wrap and elevate) but are adviser only.  I believe Pru is as well and you really dont want to be on their software. Same with Aegon.

Thanks - Your point about Royal London allowing some degree of client transactions is "music to my ears" if correct ,because that is all I actually want - How could I confirm this should I look on the site or call them or do you know how to verify this please? 

TransferDB

dunstonh said:

I was a bit annoyed as he never discussed a choice (as promised) 

IFAs dont give you choice.   It is their job to present the solution.   The filtering questions in discussion with you should lead to the outcome.     

. Apart from that, he is advising me to continue having him as a IFA at a cost of 0.5% (almost a £1,000 a year) as he reckons I won't actually be able to easily adjust or increase pay-outs from the fund (without IFA approval or advice) and that Royal London may make it difficult too.

Royal London do not make it difficult and they will allow those transactions direct to consumer.  Indeed, we often use RL for transactional clients because they allow it.  (rather than put them with a better provider who only allows transactions via an IFA).

Should I go on a comparison site and try to find alternative providers or just ask the IFA to source one that allows me control independently (he said AEGON, Standard Life and the Pru were on his list of options although their charges were a lot higher)? 

Standard Life (wrap and elevate) but are adviser only.  I believe Pru is as well and you really dont want to be on their software. Same with Aegon.

"Indeed, we often use RL for transactional clients because they allow it.  (rather than put them with a better provider who only allows transactions via an IFA)." Interesting, and could you suggest "better" providers then?

dunstonh

Thanks - Your point about Royal London allowing some degree of client transactions is "music to my ears" if correct ,because that is all I actually want - How could I confirm this should I look on the site or call them or do you know how to verify this please? 

It isn't as easy to get money out on a DIY basis as you have to go through their warnings process but if you are not planning to make changes often then its not really a problem.   An adviser knows the plan and you and doesn't have to repeat the process with you each time.

You can contact RL if you want but we have directed clients their way over the phone a number of times with no issues whatsoever.

"Indeed, we often use RL for transactional clients because they allow it.  (rather than put them with a better provider who only allows transactions via an IFA)." Interesting, and could you suggest "better" providers then?

Better is subjective and is often based on opinion and circumstances.    Whatever I feel about a provider will vary with how others feel.  As I said, I think RL is a good option for transactional clients but I rarely use it for servicing clients.   RL, back when they were trading under the Scottish Life brand, used to have fantastic service.  Quick, accurate and easy to deal with.  It hasn't been that way for a while.  It's not bad but it's sluggish compared to others. Quite heavy in paper and not online.   Their investment performance is average and others come in cheaper (although RL are not expensive).     They do have some advantages.  They use pension funds rather than UT/OEICs.  So have 100% FSCS protection with no upper limit.  They are also a mutual and they have a mutual bonus.  Whilst it is not guaranteed, they return a share of their profits to the policyholders.  Which in effect, offsets the charges and if you treat that as a net charge, then they are good value.   

Albermarle

TransferDB said:

dunstonh said:

I was a bit annoyed as he never discussed a choice (as promised) 

IFAs dont give you choice.   It is their job to present the solution.   The filtering questions in discussion with you should lead to the outcome.     

. Apart from that, he is advising me to continue having him as a IFA at a cost of 0.5% (almost a £1,000 a year) as he reckons I won't actually be able to easily adjust or increase pay-outs from the fund (without IFA approval or advice) and that Royal London may make it difficult too.

Royal London do not make it difficult and they will allow those transactions direct to consumer.  Indeed, we often use RL for transactional clients because they allow it.  (rather than put them with a better provider who only allows transactions via an IFA).

Should I go on a comparison site and try to find alternative providers or just ask the IFA to source one that allows me control independently (he said AEGON, Standard Life and the Pru were on his list of options although their charges were a lot higher)? 

Standard Life (wrap and elevate) but are adviser only.  I believe Pru is as well and you really dont want to be on their software. Same with Aegon.

Thanks - Your point about Royal London allowing some degree of client transactions is "music to my ears" if correct ,because that is all I actually want - How could I confirm this should I look on the site or call them or do you know how to verify this please? 

If you are going down this route with this IFA , then I would suggest you get full clarification from them about how you are able to deal with RL directly ( if you want to) , once the IFA has set it up .

I don't think I am clever enough or have the knowledge to choose the investments myself -
That's fine but be aware that you do not have to be clever to set up a simple investment portfolio nowadays . The internet has made investing for individuals much easier, and with a lot more info available.
You do need some basic knowledge of course, but it is not rocket science ( luckily  )

TransferDB

"If you are going down this route with this IFA , then I would suggest you get full clarification from them about how you are able to deal with RL directly ( if you want to) , once the IFA has set it up ."

Yes, that might be the best option - I just think that a pension that is classed as "Flexi Drawdown" should be exactly that; and I find the claim from my IFA "that all providers now restrict clients some of the ability to adjust payments or take ad hoc sums, unless cleared or approved by their IFA" to be quite bizarre. It either is or it isn't flexible (within some sensible limits of course).