What do we need? Pension advisor? Financial advisor? Are they the same or different?!

dunstonh

Just a question; how easy/difficult is it to arrange setting up a pension ourselves to make payments from our limited company? Ie instead of doing it through a third party who would want to take a chunk?

Easy enough if you know what you are doing.

 Presumably we could just contact a few of the big pension companies, but is there a specific type we'd need to be setting up to make sure we get the tax break by paying it from our limited company? 

The brand names you would recognise will likely cost you more than using an IFA.     If you want to DIY, then you should use a provider that focuses on DIY as its method of distribution.  That means using firms you are unlikely to have heard of.

Emanef

The fees for the IFA we had spoken to (if you look at platform fees, brokerage, annual fees, fees for the IFA, etc) are huge, some of the figures mentioned within the illustration we were given means it would be costing over £200k in fees for us to get £50k of growth over 20 years. We just want somewhere to get it out of the business in a tax efficient way that will not cost a fortune. 

dunstonh

 some of the figures mentioned within the illustration we were given means it would be costing over £200k in fees for us to get £50k of growth over 20 years.

The illustrations show the effect of charges, if not taken and obtaining a rate of x.xx%. That would include provider charges and fund charges normally.  Its a bit like saying that if you didn't buy your food from Tesco and had invested that money instead at x.xx%, you would have £yyy more.

In reality, the margins on pensions and investments and advice are low.  Quite possibly lower than the margins you operate your own business on.  So, you should be able to understand that sort of thing.

Removing an IFA charge would reduce the charge in that respect but there are also plenty of expensive DIY options which are more than using an IFA.     Plus, all options will have a provider and fund charge.  DIY is all about how good or bad you do it.  

Emanef

That may be so, but in this case it looks like a terrible proposal, mine as well. Starting with a £30k deposit and paying in £12000 a year for 16 years. Based on 'mid investment growth rates' it says it would be worth £220k after that time before charges, but after charges it would be worth £180. £174k would have been paid in over that 16 years but it would only have increased £6 grand in that time, yet everyone else involved would have made £40k. I don't need a financial advisor to tell me that is a terrible option for me, great for everyone else. 

I've spoken to another IFA, hopefully their option is a bit more realistic. 

Qyburn

Emanef said:

... it would be costing over £200k in fees for us to get £50k of growth over 20 years. 

For what total value? £10k per year on two million would be 0.5%.