St. James's Place in the news recently.

dunstonh

Seems to me each SJP company is different so maybe depends on exactly which company you go with?

There is only one SJP.   However, their sales reps are attached to individual smaller firms.  Those firms have to follow SJP rules and will retail SJP products.   

I have a very unusual company pension. The pension administrators themselves recommended a particular person (who works in a practice affiliated to SJP). The pension people said they have had "several" pension transfers fail by other people.

I found it odd that the pension administraters themselves would "recommend" a particular IFA for a pension transfer but I am reluctant to go against that not least as the SJP person seems to have offered me what I as a layman consider a reasonable deal. After 5 years I can move free of charge and during the first 5 there is a fee taper which starts at 8% then every year goes down by 2% until zero at 5 years.

FAs have restrictions and cannot do certain things.  IFAs do not have restrictions.   So, that SJP member firm probably uses a local IFA with a fee-sharing arrangement to do things they cannot do themselves.

Whilst you may consider a 5 year tie in reasonable, its worth noting that its pretty unique as the rest of the market has no tie in.  So, everyone else will think what you have is unreasonable.

Qyburn

michael1234 said:

How can they "steal" 20% without you noticing ?

Maybe he's thinking of an advice fee of 0.5% being taken every year for the duration. Although I'm not quite sure that's how the maths works, if I paid 2% fee and kept the policy for 50 years would that amount to taking 100% of my pension?

FIREDreamer

michael1234 said:

How can they "steal" 20% without you noticing ?

A short service youngish employee could lose over 50% of their pot a few years ago when some policies had capital units with a high management charge being bought in tne first couple of years. When transferred out, the insurer would take away the future charges from those units by applying a surrender factor of something like 0.95^(term to retirement in years) to the units held!

michaels

Qyburn said:

michael1234 said:

How can they "steal" 20% without you noticing ?

Maybe he's thinking of an advice fee of 0.5% being taken every year for the duration. Although I'm not quite sure that's how the maths works, if I paid 2% fee and kept the policy for 50 years would that amount to taking 100% of my pension?

8%+6%+4%+2%

Qyburn

michaels said:

Qyburn said:

michael1234 said:

How can they "steal" 20% without you noticing ?

8%+6%+4%+2%

Gotcha. But but those aren't additive and you missed off the last one of 0%. They're alternatives, one of which would be charged depending on how soon he jumps ship. Worst case of 8% is bad enough.

zagfles

Qyburn said:

michael1234 said:

How can they "steal" 20% without you noticing ?

Maybe he's thinking of an advice fee of 0.5% being taken every year for the duration. Although I'm not quite sure that's how the maths works, if I paid 2% fee and kept the policy for 50 years would that amount to taking 100% of my pension?

No because it compounds. Plus you need to account for monthly input/withdrawal and growth.

It's easy enough to model in a spreadsheet. If you invest £1000 a month for 50 years with 8% growth and 2% charges, the charges halve the pot. So 50% of your pot went in charges.  

Ibrahim5

If you go to a Ford dealer the used car salesman will sell you a Ford. If you go to Motorpoint the used car salesman can sell you any brand. They are still all used car salesmen. It doesn't really make that much difference that they are 'independent'. The IFA may be cheaper than SJP or they may be more expensive. The regulators are always saying that advisers should put their fees on their websites but they won't.

michaels

michael1234 said:

I have a very unusual company pension. The pension administrators themselves recommended a particular person (who works in a practice affiliated to SJP). The pension people said they have had "several" pension transfers fail by other people.

I found it odd that the pension administraters themselves would "recommend" a particular IFA for a pension transfer but I am reluctant to go against that not least as the SJP person seems to have offered me what I as a layman consider a reasonable deal. After 5 years I can move free of charge and during the first 5 there is a fee taper which starts at 8% then every year goes down by 2% until zero at 5 years.

Seems to me each SJP company is different so maybe depends on exactly which company you go with?

ok - so in this case fee refers to the fine for moving money away from one of the most expensive arrangements out there rather than the annual management fee. I misunderstood

advent2020

Somebody said:

advent2020 said:

Will I get any compensation  re high fees.

Depends on the level of service you received over the years.  Did you have at least an annual review with your advisor?  If not, you may have a case and I read SJP have set aside £426m to cover complaints over services customers claim not to have received.

Excuse me spelling Im dyslexis

I am actually quite happy with my advisros services (separate from SJP)
He got me much cheaper car insurance
cheaper mortgages and loasn
Good converyancing
found me good airbnb locations to invest

good accountant -much cheapr than previous and got me frequnt tax refunds

dunstonh

advent2020 said:

Somebody said:

advent2020 said:

Will I get any compensation  re high fees.

Depends on the level of service you received over the years.  Did you have at least an annual review with your advisor?  If not, you may have a case and I read SJP have set aside £426m to cover complaints over services customers claim not to have received.

Excuse me spelling Im dyslexis

I am actually quite happy with my advisros services (separate from SJP)
He got me much cheaper car insurance
cheaper mortgages and loasn
Good converyancing
found me good airbnb locations to invest

good accountant -much cheapr than previous and got me frequnt tax refunds

If they have done a job you are happy with, then you wouldn't be expected to complain.   Its really aimed at those why have been paying for a service and not getting it.