Pension Advisor fees

Aminatidi

£30K is 5% a year.

I don't work in financial services but that feels toppy for an expectation from a conservative multi-asset fund and what I assume from the name is a roughly 40% equity exposure fund.

And that's without paying 1.5% in fees.

Albermarle

 There's a 1% fee to transfer the pensions. What appears odd is the year on year costs are applied in advance so initial costs are setup plus ones years worth

So the real initial fee is actually £6K , which is more reasonable.

It is odd AFAIK to charge the whole ongoing charges ( including advisor/DFM/Platform/fund costs) for the next 12 months at the same time. Presume some way to lock you in . Also fund costs are normally paid for out of the fund, so you never see them as such, so not sure how you could pay these in advance?

For the ongoing charge, 1.5% all in is not that bad although could be less.

In the end only you can decide whether you pay or DIY . Remember DIY is not free, for comparison you could use 0.5% all in as a ball park as long as you avoid expensive managed funds.

Billxx

TGP99 said:

It was 1% (as part of initial fee) for every existing pension that got transfered to the new platform, which ended up being all of them. Ongoing costs are platform costs, Fund management fee ~1K (think thats the AIPM managed fund), Fund costs ~4K and ongoing advisor fee ~4K. The initial figure seems massive but my main concern with the ongoing costs are I only need ~30K/Year from it and paying 9K to secure 30K seems a bit counter intuitive

I think you are right.  There are plenty of IFA's who will lay out all your options, consolidate your pots into a single provider (if that's what you want), choose a governed portfolio based on your attitude to risk.  They will do this for a few thousand, nowhere near £18k.
  
The ongoing fee to me feels huge, I could be wrong, but £750 per month!

Aminatidi

Billxx said:

TGP99 said:

It was 1% (as part of initial fee) for every existing pension that got transfered to the new platform, which ended up being all of them. Ongoing costs are platform costs, Fund management fee ~1K (think thats the AIPM managed fund), Fund costs ~4K and ongoing advisor fee ~4K. The initial figure seems massive but my main concern with the ongoing costs are I only need ~30K/Year from it and paying 9K to secure 30K seems a bit counter intuitive

I think you are right.  There are plenty of IFA's who will lay out all your options, consolidate your pots into a single provider (if that's what you want), choose a governed portfolio based on your attitude to risk.  They will do this for a few thousand, nowhere near £18k.
  
The ongoing fee to me feels huge, I could be wrong, but £750 per month!

The thing that is interesting with fees, to me at least, is you probably don't see them.

They're obviously there if you go out of your way to look for them, but I don't think they're presented in a way that's visible and felt that getting out your cheque book and writing a cheque for £750/month each and every month would be visible and felt.

dunstonh

For a £600K pot its £18K to setup and £9K/annun to maintain. Thats all in and includes 1% fee for transfering all my pensions and platform costs etc. It just seems like a crazy amount of money. 

Thats a disgraceful amount.  Sounds like the sort of level a sales company charge or a greedy IFA.  For reference, an IFA operating on fixed fee or cap/collar and/or tiered basis would be closer to around £3k initial

i assume the 1.5% p.a. (which is the £9k) is the total charge.    I cannot imagine any adviser firm charging 1.5% for themselves.   That is almost double what an IFA using passive investments would be. (circa 0.7-0.8% all in)

You need to find another IFA.  This one is taking the P.

xylophone

I'm hoping to retire in a few years and have various pensions most of which are dornmant now.

Just no longer receiving contributions rather than dormant?

How old are you now?

Have you checked your state pension position?

https://www.gov.uk/check-state-pension

Are you currently contributing to a workplace pension?

If so, had you considered consolidating your older pensions into the WP?

Otherwise, had you considered opening a SIPP and  asking the provider to arrange the transfers in?

Once this was done, you might consider taking investment advice?

Considered a provider like Vanguard which offers Target Retirement portfolios?

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

Done some reading?

https://monevator.com/low-cost-index-trackers/

Try another IFA?

https://adviserbook.co.uk/

Tick "confirmed independent" and other options as required.

wjr4

xylophone said:

I'm hoping to retire in a few years and have various pensions most of which are dornmant now.

Just no longer receiving contributions rather than dormant?

How old are you now?

Have you checked your state pension position?

https://www.gov.uk/check-state-pension

Are you currently contributing to a workplace pension?

If so, had you considered consolidating your older pensions into the WP?

Otherwise, had you considered opening a SIPP and  asking the provider to arrange the transfers in?

Once this was done, you might consider taking investment advice?

Considered a provider like Vanguard which offers Target Retirement portfolios?

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

Done some reading?

https://monevator.com/low-cost-index-trackers/

Try another IFA?

https://adviserbook.co.uk/

Tick "confirmed independent" and other options as required.

FYI you mention adviserbook a lot but not many firms actually use it. I just searched in the city I live and there’s over 100 firms within a radius and only 7 confirmed independent. One of which is my old employer who are shockingly bad. People should ask for recommendations not just use that website. 

boingy

I think I might set-up as an IFA. A couple of those sort of deals and you can put your feet up for the rest of the year.  

xylophone

FYI you mention adviserbook a lot but not many firms actually use it. I just searched in the city I live and there’s over 100 firms within a radius and only 7 confirmed independent. One of which is my old employer who are shockingly bad. People should ask for recommendations not just use that website. 

I mention it as a place to search for an adviser - once a person has searched, it is  surely up to him to ring round and do his own research?

With regard to recommendations, people can only speak as they find.  You state that your old employer (presumably also an IFA) is "shockingly bad" - would be be prepared to name the firm in question with reasons for your opinion?

Is it possible that another employee or client would not agree with your opinion?

And if that client, being satisfied with the service he had received, were to recommend your old employer?

wjr4

xylophone said:

FYI you mention adviserbook a lot but not many firms actually use it. I just searched in the city I live and there’s over 100 firms within a radius and only 7 confirmed independent. One of which is my old employer who are shockingly bad. People should ask for recommendations not just use that website. 

I mention it as a place to search for an adviser - once a person has searched, it is  surely up to him to ring round and do his own research?

With regard to recommendations, people can only speak as they find.  You state that your old employer (presumably also an IFA) is "shockingly bad" - would be be prepared to name the firm in question with reasons for your opinion?

Is it possible that another employee or client would not agree with your opinion?

And if that client, being satisfied with the service he had received, were to recommend your old employer?

They are losing most members of staff and have done for 2 years & they are losing clients daily. I’m not prepared to say who they are as they would then know who I am.