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Pensions

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I have 2-3 different pensions and my FA is telling me to transfer them all with Fundment so, I can draw on them when i need some money, I realise that this fund could go down as well as up but can anyone tell me if an annual charge of 1.5% is the norm.

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  • I have 2-3 different pensions and my FA is telling me to transfer them all with Fundment so, I can draw on them when i need some money, I realise that this fund could go down as well as up but can anyone tell me if an annual charge of 1.5% is the norm.

    Why are you using a financial advisor?

    Normal practice is to DIY or an independent financial adviser.
  • dunstonh
    dunstonh Posts: 119,702 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I may not catch any replies as this thread is in the wrong section.

     I realise that this fund could go down as well as up but can anyone tell me if an annual charge of 1.5% is the norm.
    Depends on how the 1.5% is made up.

    Adviser charge typical is 0.50% (apart from small values where it may be higher)
    Platform charges around  0.25%
    So, that is 0.75% ballpark
    Then you add fund charges.  These can range from around 0.1% to 2%. 
    A fully active portfolio would take you to 1.5% (or above).  A passive portfolio would keep you below 1%.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Heedtheadvice
    Heedtheadvice Posts: 2,772 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    You are lucky OP that Dunstonh is feeling 'green'. It would have been better to post in https://forums.moneysavingexpert.com/categories/pensions-annuities-retirement-planning or in the savings and investment area. At least you got a reply from one of the best posters in the area of interest!!!

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