Fees and Charges

[Deleted User]

In this day and age there are no circumstances that would justify high ongoing fees.  Reading a couple of good books should  help you pick appropriate allocation.  Picking funds is easy after that: information is at your finger tips. 

Failing that, one-off advice would do the job; no need to keep paying.  The problem with this approach is that getting a good advisor is far from guaranteed and still costs thousands.  Books written by best experts in the world  cost a few quid. 

garyelder

I looked at my fees and there running at 1.9%. I must say my pension pot only went down 9.5% but has reduced a bit last week to just under 9%
so now I’m thinking what shall I do 
so right any recommendations of a decent company to manage my pension pot I will only go with a recognised name for obvious reasons  
I don’t mind paying a fair fee 

Linton

garyelder said:

I looked at my fees and there running at 1.9%. I must say my pension pot only went down 9.5% but has reduced a bit last week to just under 9%
so now I’m thinking what shall I do 
so right any recommendations of a decent company to manage my pension pot I will only go with a recognised name for obvious reasons  
I don’t mind paying a fair fee 

Can you break down your total fees into seperate items.  It will then be easier to identify those you can easily reduce without impacting the service level you require.

dunstonh

Username03725 said:

Thanks. The general advice is what my instinct was telling me, that these initial charges + ongoing fees are on the high side. 

But the ongoing charge may not be.   If the bottom line is 1% and includes advice charge then it is not expensive.  If it doesn't include adviser charge then it is.  If no ongoing advice charge and at 1%, then is it the platform or provider charge?  Is it that a high ratio of managed funds have been used?      

garyelder

Linton said:

garyelder said:

I looked at my fees and there running at 1.9%. I must say my pension pot only went down 9.5% but has reduced a bit last week to just under 9%
so now I’m thinking what shall I do 
so right any recommendations of a decent company to manage my pension pot I will only go with a recognised name for obvious reasons  
I don’t mind paying a fair fee 

Can you break down your total fees into seperate items.  It will then be easier to identify those you can easily reduce without impacting the service level you require.

My charges

Ongoing charges Managing funds 0.99%

Fund trading costs  0.29
total investment charges.        1.28%
Portfolio admin  safe keeping 0.20%
parmenion sipp charge.  £86 a quarter 

Advisor charge. 0.70%

dunstonh

garyelder said:

Linton said:

garyelder said:

I looked at my fees and there running at 1.9%. I must say my pension pot only went down 9.5% but has reduced a bit last week to just under 9%
so now I’m thinking what shall I do 
so right any recommendations of a decent company to manage my pension pot I will only go with a recognised name for obvious reasons  
I don’t mind paying a fair fee 

Can you break down your total fees into seperate items.  It will then be easier to identify those you can easily reduce without impacting the service level you require.

My charges

Ongoing charges Managing funds 0.99%

Fund trading costs  0.29
total investment charges.        1.28%
Portfolio admin  safe keeping 0.20%
parmenion sipp charge.  £86 a quarter 

Advisor charge. 0.70%

For me, that is expensive.  You are through the 2% mark.   That really should be a no no for 2023 (indeed, for 2000 onwards)   For example, I just completed a review where the charges were as follows:

Fund OCF: 0.10%
Transaction costs 0.01%

Platform charge 0.25%
Advisor charge. 0.50%
Total cost: 0.86%


  

garyelder

Thanks for that 
I need to get a decent pension provider I’m only going to go on recommendations 

bostonerimus

This is not exactly relevant to the situation in the UK, but just as a comparison of costs I'm in the US and this is what I pay for my DIY portfolio.

Fund OCF: 0.08%
Transaction costs 0.00%

Platform charge 0.00%
Advisor charge. 0.0%
Total cost: 0.08%

I'm currently 10% down from the peak value of my 90% equity portfolio. UK investors should be a bit more activist about what they are paying in fees.

Albermarle

garyelder said:

Thanks for that 
I need to get a decent pension provider I’m only going to go on recommendations 

Do you mean to drop the whole IFA package and go ' Do it Yourself' ?

If so picking the pension provider is the easier part, but then you have to pick what investments to hold within that pension.

Maybe an alternative would be to look for another IFA with lower charges, who chooses less expensive investments?

garyelder

I wouldn’t pick it myself haven’t got a clue  

 Some one like Hargreaves Lansdown got to be so careful these days