IFA and Pension fund management charges - transferring a DC workplace & private pension

DeadlyD

UPDATE - Dear Forumites,
I have 2 quotes from IFA's - one a well known wealth management company in my County and another sole trader - I've discounted the latter for various reasons, not least trying to charge me for advice but anyway I've been through the charges;- 

1.  transfer of the L&G approx £200k (I'm leaving the SJP until Oct 24 due to early withdrawal charges) are 1.75% (I'm OK with that) -
2. 0.75% IFA management charge - OK 
3. recommendation Quilter and fund management = 1.15%

Overall Per annum management charges are 1.90% 

As I will be drawing down by UFPLS my tax free allowance and 25% = £16,760 pa, I will be paying nearly £4k (yr1 but obviously 1.90% on total funds) on management fees on a proposed 7% increase on funds. Risk category 7 
Now I'm concerned that on the L&G approx £200k transfer the charges of nearly 2% per annum 

My SJP is 1.72% which I thought was expensive on £140k 

I understand the value of management from the IFA, but my affairs are relatively simple and I have the time now to manage myself, being retired. 

I'm rather afraid of SIPP's but is there a simple "packaged" pension that would provide the same type of return - 7% or forecast as a 7 cat risk @ 9.8% pa OR am I paying for that expertise in the fund management of Quilter for that good % return. 

TIA! Deadly 

dunstonh

Is the quilter recommendation from an IFA?    Quilter has their own salesforce that can only recommend quilter platform and quilter funds (although some quilter reps appear to have a limited panel beyond that).   Quilter make their products available to IFAs but not many IFAs would use Quilter's investments (platform yes but their in house funds less so).    And with £140k. the Quilter platform would not  be at the cheaper end.  It runs FNZ but so do most of the others that are cheaper.    Generally, if you see a relatively low value going onto Quilter and using Quilter investments, your immediate thought is that its a Quilter sales rep.

I'm rather afraid of SIPP's but is there a simple "packaged" pension that would provide the same type of return - 7% or forecast as a 7 cat risk @ 9.8% pa OR am I paying for that expertise in the fund management of Quilter for that good % return. 

Nothing to be afraid of with SIPPs.   Just because they can hold over 30,000 investment options, doesn't mean you need to hold over 30,000 of them.  Keep it simple with a low cost multi-asset fund and you achieve your goal.    That is usually better than most robo options which do only have around 5 funds.

DeadlyD

dunstonh said:

Is the quilter recommendation from an IFA?    Quilter has their own salesforce that can only recommend quilter platform and quilter funds (although some quilter reps appear to have a limited panel beyond that).   Quilter make their products available to IFAs but not many IFAs would use Quilter's investments (platform yes but their in house funds less so).    And with £140k. the Quilter platform would not  be at the cheaper end.  It runs FNZ but so do most of the others that are cheaper.    Generally, if you see a relatively low value going onto Quilter and using Quilter investments, your immediate thought is that its a Quilter sales rep.

Deadly - Quilter is via the Wealth Management Co . its on the £200k fund transfer from L&G 
 - Charges .75% adviser
 - Quilter platform .28% 
- Fund OCR .73% (BNY Mellon Multi Asset) - any thoughts @dunstonh
-Fund TER .14% 
total 1.9% 

I'm rather afraid of SIPP's but is there a simple "packaged" pension that would provide the same type of return - 7% or forecast as a 7 cat risk @ 9.8% pa OR am I paying for that expertise in the fund management of Quilter for that good % return. 

Nothing to be afraid of with SIPPs.   Just because they can hold over 30,000 investment options, doesn't mean you need to hold over 30,000 of them.  Keep it simple with a low cost multi-asset fund and you achieve your goal.    That is usually better than most robo options which do only have around 5 funds.

Just not sure which provider to use for a SIPP - what's a good / easy option if I was to transfer the £200k myself? Being a novice..
And my pension is now my only source of income I'm worried about paying £4k on a possible £11k forecast increase which if it doesn't perform will impact my pension quickly - right? If it remains at £200k I pay £4k year on year whilst taking out £16k UFPLS  

Billxx

If you have anxiety around using a SIPP, have a look around at various pension providers.  There are a number that have low charging structures and managed portfolios dependent on your attitude to risk.  Royal London are a mutual, have low costs and a profit share.  But there are others.

Steve_666_

"Just not sure which provider to use for a SIPP - what's a good / easy option if I was to transfer the £200k"

II have a simple and cheap platform charging structure, £12.99 a month Pension Builder builder. Has most if not all options that you can get elsewhere. I would recommend you do a little research and understand what you want to achieve before embarking on the DIY SIPP route, there are many low cost multi-asset balanced funds from Vanguard, L&G, HSBC, Blackrock etc etc

Albermarle

Billxx said:

If you have anxiety around using a SIPP, have a look around at various pension providers.  There are a number that have low charging structures and managed portfolios dependent on your attitude to risk.  Royal London are a mutual, have low costs and a profit share.  But there are others.

I am pretty sure that to open a Royal London Pension you have to go through an advisor.

OP - Most of the pension providers regularly mentioned on here, are fine. The charging structures are a bit different and some will suit some more than others, but essentially they all offer a reasonable service with modern software.
Hargreaves Lansdown are the most expensive but have a current generous cashback offer for pension transfers.
Fidelity; AJ Bell; Vanguard, Interactive Investor; Standard Life etc you can have a look at their websites as well.

DeadlyD

Albermarle said:

I am pretty sure that to open a Royal London Pension you have to go through an advisor.

OP - Most of the pension providers regularly mentioned on here, are fine. The charging structures are a bit different and some will suit some more than others, but essentially they all offer a reasonable service with modern software.
Hargreaves Lansdown are the most expensive but have a current generous cashback offer for pension transfers.
Fidelity; AJ Bell; Vanguard, Interactive Investor; Standard Life etc you can have a look at their websites as well.

Thanks @Alber@Albermarle PREV
You make it sound simple and perhaps I have been overthinking this on the basis I have previously had workplace pensions and no need to engage with Financial experts non the less I have had experience with SJP & transferring a DB both which lefty me suspicious of the interactions (albeit having a very decent FA for the DB with Pension Help, but after engaging with many bad eggs) 
Do you have any view that Quilter with a BNY Mellon Multi Asset fund (not much idea what this is) would be a better bet for performance rather than say AJ Bell or Vanguard? 
Can I use UFPLS with all these platforms?
Thanks!

xylophone

You are now mulling over the DIY SIPP option?

Example

https://www.ii.co.uk/ii-accounts/sipp/ufpls

Below might be of interest.

https://moneytothemasses.com/saving-for-your-future/pensions/the-best-cheapest-sipps-low-cost-diy-pensions

https://monevator.com/passive-fund-of-funds-the-rivals/

DeadlyD

xylophone said:

You are now mulling over the DIY SIPP option?

Example

https://www.ii.co.uk/ii-accounts/sipp/ufpls

Below might be of interest.

https://moneytothemasses.com/saving-for-your-future/pensions/the-best-cheapest-sipps-low-cost-diy-pensions

https://monevator.com/passive-fund-of-funds-the-rivals/

Yes! Given that growth % this year is low (going on my L&G & SJP this year have remained the same value, just recovering from a slump) 
I'm considering should I pay IFA management company £3,400 one off to transfer my L&G to Quilter and pay 1.90% 
for BNY Mellon fund + adviser + Quilter (this is more % than SJP!) @ £3,800 per annum - If I don't have any % increase or even a 5% in Yr1 I wont make anything, factoring in I will withdraw £16k UFPLS
I have read money to the masses previously (thanks! and again on other articles posted here) 
BUT still I am nervous of transferring £200k as I have no earnings.. I was definitely going to go for a SIPP in Oct with the £140k SJP fund but £200k seems a lot for a novice.. ?
This Interactive Investor site on first glance looks very informative and been reading "Which" articles on SIPPs.
I'll comment further... 
Thanks  

LHW99

Do you have any view that Quilter with a BNY Mellon Multi Asset fund (not much idea what this is) would be a better bet for performance rather than say AJ Bell or Vanguard? 

AJ Bell / vanguard (or other platforms) don't 'perform' any more than Quilter would. It's the funds that you hold on the platform that give the performance, or not, and that in turn depends on where / what they invest in, the market sentiment and probably half a dozen other things.

Multi-Asset funds try to cover a range of equity / bond types, maybe property or commodities like oil / gas / minerals so that if one part goes down another is going up.

Can I use UFPLS with all these platforms?

Not sure about Vanguard, but HL, AJBell, II and Fidelity do UFPLS. Some do it all online, some need a form posting.

Albermarle

Do you have any view that Quilter with a BNY Mellon Multi Asset fund (not much idea what this is) would be a better bet for performance rather than say AJ Bell or Vanguard? 

As mentioned in the post above.

Try not to confuse two different things.

To use AJ Bell as an example.  AJ Bell is an investment platform. They offer thousands of different investments from hundreds of different companies. It is the investment you pick that performs, the platform is just an administrator.

What can confuse people is that they also offer a small number of AJ Bell branded funds, but there is still a split between the platform and the funds.

In the end if you buy Investment A on any platform, it will perform exactly the same regardless of which platform you use.