Pension adviser...worth it?

Fu_Man_Chu

That's a relatively small pot to be paying a high proportion of fees on. Straightforward low cost options may prove better in the long term. 

Yup, my sentiments exactly

Diplodicus

Hardly ever. 

And the longer your Financial Adviser is leeching off your pension  side by side with you through your investment journey, the poorer (relatively) you are likely to become.

Also a concern of the Financial Conduct Authority

https://citywire.co.uk/new-model-adviser/news/fca-concerned-consumers-are-paying-for-ongoing-advice-they-don-t-need/a1434136

JoeCrystal

Fu_Man_Chu said:

Hi, I've just had a pension adviser around and I'm unsure whether its worth all the fees to have my own bespoke adviser who will review and tailor my pension.

In summery she wants to charge me an initial fee of £4600 and then 1% thereafter. The fund she uses has out performed my current pension to the tune of £15900 over the last six years. If I add her 1% pa plus the set up fee it basically equates to being around £2400 better off with the pension advisors fund.

My work pension is about to move over to Lifesight in January. This seems to be a better managed fund than my old provider so I'm now thinking that with all the fees for the pension advisor I'd be no better off.

Obviously we don't have a crystal ball but thoughts please?

Are you sure you are seeing an IFA? Is it not someone from St. James's Place Wealth Management by any chance? I paid £300 for a one-off fee to an IFA with no servicing charges a few years ago for a contrast. Nothing to stop you from asking other IFAs in the area.

cupidstunt

I'm in a similar situation currently have £370K being 'managed' via an IFA with Quilter, for which I pay a 1% fee. In his favour the IFA didnt charge a fee for helping me switch, so Im comfortable letting things roll for a year or so, as I improve my own knowledge. I also have an employers DC pension of £250k. Is it possible to switch the Quilter cash to a cheaper SIPP and still keep the DC going ? 

Albermarle

Fu_Man_Chu said:

I think I'm going to transfer the lot to LifeSight and let them manage it for 0.55%. If it wasn't for the initial fee of £4600 Id be tempted but that seems very excessive for a pretty minimal pot

I am not familiar with LIfesight but I presume you meant they manage the investment fund . That is not the same as having an IFA manage your whole personal finances.
In this case you are managing your investments by deciding to go with Lifesight.

I am not advocating you use an IFA ( especially not one charging such a hefty fee ) but thought it was worth just clarifying what managing means in this context .

xylophone

I am not familiar with LIfesight 

See https://www.lifesight.com/about-lifesight-saving

It is a Master Trust administered by Willis Towers Watson - the OP said

My work pension is about to move over to Lifesight in January.

mark13

LIfesight, on their website, it  does allow to select your own investments so you can check the performance of their funds and move your money if needed. Its worth checking the performance.