Royal london pension

JOHNBOY42

Hi.... new to this forum and the world of pensions so go easy........
My Ifa has put me into Royal London for my investments and looking at their charges at 0.4 appears to be good also being a mutual they distribute profits back to the members also a plus point but I cant find any real feedback from members .... are they easy to deal with and do they have a app to keep up to date with your portfolio

Dazed_and_C0nfused

JOHNBOY42 said:

Hi.... new to this forum and the world of pensions so go easy........
My Ifa has put me into Royal London for my investments and looking at their charges at 0.4 appears to be good also being a mutual they distribute profits back to the members also a plus point but I cant find any real feedback from members .... are they easy to deal with and do they have a app to keep up to date with your portfolio

They have an android app which mentions access to pension information.

JoeCrystal

They do have an app but they are very sniffy about dealing with their customers directly, preferring to work with your advisers rather than yourself. No longer with RL though due to issues with changing my contributions alas.

[Deleted User]

Is 0.4% an all inclusive  annual charge accounting for advisory fees?  I suspect not and that your total is closer to 1%.  That’s very high by today’s standards; something like 0.1% is achievable.  1% does not sound like much but given that every pound you put in could be “taxed” like this year in, year out for 50 years or more, the impact is large.  

If you search this forum, there are numerous discussions about RL. Personally I think their portfolios are misleadingly named and many hold a surprising amount of illiquid assets. 

JOHNBOY42

RL is 0.4 all in.......... ongoing financial advice is 0.85 ...so my total fees should be 0.89 .......... does that appear ok?

dunstonh

My Ifa has put me into Royal London for my investments and looking at their charges at 0.4 appears to be good also being a mutual they distribute profits back to the members also a plus point but I cant find any real feedback from members .... are they easy to deal with and do they have a app to keep up to date with your portfolio

Your IFA may also have a portal available.  Most do.

RL is 0.4 all in.......... ongoing financial advice is 0.85 ...so my total fees should be 0.89 .......... does that appear ok?

0.4% for product and funds plus 0.85 = 1.25%   That is perfectly fine as a bottom line.

[Deleted User]

JOHNBOY42 said:

RL is 0.4 all in.......... ongoing financial advice is 0.85 ...so my total fees should be 0.89 .......... does that appear ok?

1.3% in costs will have a very large impact over portfolio’s lifetime.  Once you decide on risk and asset allocation, costs are the only thing left that is in your control.  

Given people can buy the world in a single “buy and forget” product and have it professionally managed for less than one tenth of what you are paying, 1.3% seems intolerable.  But if you really need an intermediary on an ongoing basis and don’t have a lot of assets then you pay for the pleasure.

JOHNBOY42

dunstonh said:

My Ifa has put me into Royal London for my investments and looking at their charges at 0.4 appears to be good also being a mutual they distribute profits back to the members also a plus point but I cant find any real feedback from members .... are they easy to deal with and do they have a app to keep up to date with your portfolio

Your IFA may also have a portal available.  Most do.

RL is 0.4 all in.......... ongoing financial advice is 0.85 ...so my total fees should be 0.89 .......... does that appear ok?

0.4% for product and funds plus 0.85 = 1.25%   That is perfectly fine as a bottom line.

Cheers dunstonh........... my bad .....it is 1.25 ..... .... costs seem reasonable but as I said its all new to me 

ewaste

Deleted_User said:Given people can buy the world in a single “buy and forget” product and have it professionally managed for less than one tenth of what you are paying, 1.3% seems intolerable.  But if you really need an intermediary on an ongoing basis and don’t have a lot of assets then you pay for the pleasure.

I would be interested to know where I can get a SIPP or similar pension including fund charges for less than 0.13% for a typical DC pension? Never mind one professionally managed e.g. a cap weighted global index fund isn't by any stretch 'professionally managed' it's about as unmanaged as one can get.

AlanP_2

I have a managed pension with RL. It was set up by an IFA when I transferred out from an old DB scheme.

Standard charge from RL is 1% from memory but anything over about £50k starts to attract a discount. Like you I am paying 0.4% all in and there is no ongoing IFA charge as I am not using one.

Haven't used an App, but have web access which tells me everything I want to know.

I haven't tried to contribute anything to it so no idea if that can only be done via an IFA but have made withdrawals at no charge. Quick phone call, reply confirmation to summary email they send me and money in my account within a few days

We have other investments as well and look at this as a low cost, broadly diversified option that will be less volatile than some of our self-select options.

Albermarle

ewaste said:

Deleted_User said:Given people can buy the world in a single “buy and forget” product and have it professionally managed for less than one tenth of what you are paying, 1.3% seems intolerable.  But if you really need an intermediary on an ongoing basis and don’t have a lot of assets then you pay for the pleasure.

I would be interested to know where I can get a SIPP or similar pension including fund charges for less than 0.13% for a typical DC pension? Never mind one professionally managed e.g. a cap weighted global index fund isn't by any stretch 'professionally managed' it's about as unmanaged as one can get.

You can get a multi asset fund for between 0.22% and 0.17% . If you had a largish fund you could get your platform charges down to almost nothing as a % .
I have a multi asset fund in an ex large employer pension and it costs 0.27% all in ( 0.3% in drawdown )