L&G Retirement Advice

Notfarfromtheborder

Looking at L&G site, they offer a pension review service for £500, please see below.

Has anyone used this service, I'm thinking this could be a good option rather than engaging the full services of an ifa?

Could be a good hand hold for peace of mind?

Prices are easy to calculate depending on the advice we give. For example, a pension review to make sure you’re investing in the best funds and switching them over, is a flat fee of £500

Our retirement advice team will give you tailored financial advice, so you can make the best choices for you and your family. And because they’re independent advisers, they don’t just look at our products. If another provider offers a better option, they’ll recommend them instead. 

Retirement advice is fully regulated by the FCA and provided by Legal & General Financial Advice, as part of the Legal & General Group.

gm0

Numerous life companies and other providers have a tied (and in some cases broader market) advice offering.  There are still a few pension transfer specialists of a pile it high sell it cheap option as well.  Cranking out pension assessment and "suitable advice" per FCA.   In reality there is little difference in the regulated pension advice part as there cannot be.  A tied outfit will offer only own product.  One offering from a broader pallet - does that.

Any IFA (whether the mythical small practice local independent or something more corporate - will have wealth/risk/other categories and "template solutions" suitable for each.  No point in bespoking every customer as a unicorn. 

So will L&G - whether they are being very scrupulous or not about the independence/sourcing stated in the quote above.  They will be doing "enough" to be able to make the claim.  How good the offer is I could not say - compared to what.

I have not used their advice service but have interacted with them in scheme admin and Worksave roles around guidance.  I found the people I dealt with good as individuals (as in friendly and apparently working in a fairly OK culture - attitude was good).  But their processes on the other hand are a bit archaic, fairly slow, a bit chaotic at times.  And their digital facilities are  in general sorely lacking.  For the transaction you are discussing - pension fund review.   This matters - not very much.   Nor does it for accumulation from paid employment.  Nor for me does it obstruct using them for set and forget drawdown income.  I would like more options and breadth of support in the web interaction.  But it is not a showstopper for me.  Others would disagree I am sure.

If you already have a relationship with L&G this may be  (fairly) cost effective option and help you with either a problem you believe you have (to solve), or with confidence with investing choices. 

So it is not a "terrible" option - depending upon what you need to do.  Better and cheaper are available with some effort.

As with any "suitable advice" recommendation.  The likely difference between recommendations on the same "fact find" is incremental at best.   Yes the recommended portfolio may or may not turn out better - but nobody knows that.  

What is known and also matters is the total cost end to end.  Product downstream (as recommended), total charges.  Initial/setup charge etc.  Advice fee - as here.

With any advice contract - with any provider.  Read the small print and fee statements for each element most carefully.

Notfarfromtheborder

Just had an initial 15 min chat with them.

Cost to review existing dc pots and implement recommendations, £7.5K

If I transfer all my existing pots without any advice to L&G whom my current workplace pension is with, they will then advise on fund choice for £500.

My current management charge with L&G is 0.1%, plus fund charges so pretty competitive,

Based on this I'm thinking this could be a good low cost option,a  bit of handholding moving forward regarding fund choices which is all I think I need.

dunstonh

Cost to review existing dc pots and implement recommendations, £7.5K

£7.5k is far too expensive for that sort of transaction unless it includes safeguarded benefits being overridden or a DB pension is involved.

And to be limited to L&G products and pay that is horrendous pricing.

If I transfer all my existing pots without any advice to L&G whom my current workplace pension is with, they will then advise on fund choice for £500.

Most L&G pensions have a fund choice of around 80 funds but the funds are not particularly great and comparable options on the open market can be better.   I usually find it easy to justify moving away from them.

My current management charge with L&G is 0.1%, plus fund charges so pretty competitive,

Its at the right end of the scale but with the fund changes typically being 0.2x% to 0.4x% on top of that, then you are in the ballpark of whole of market comparable options.  e.g. the HSBC or VLS ranges of multi-asset funds compared to the L&G multi-asset funds.

So, don't rule out whole of market options on the basis of a very very expensive restricted advice service.

Notfarfromtheborder

dunstonh said:

Cost to review existing dc pots and implement recommendations, £7.5K

£7.5k is far too expensive for that sort of transaction unless it includes safeguarded benefits being overridden or a DB pension is involved.

And to be limited to L&G products and pay that is horrendous pricing.

If I transfer all my existing pots without any advice to L&G whom my current workplace pension is with, they will then advise on fund choice for £500.

Most L&G pensions have a fund choice of around 80 funds but the funds are not particularly great and comparable options on the open market can be better.   I usually find it easy to justify moving away from them.

My current management charge with L&G is 0.1%, plus fund charges so pretty competitive,

Its at the right end of the scale but with the fund changes typically being 0.2x% to 0.4x% on top of that, then you are in the ballpark of whole of market comparable options.  e.g. the HSBC or VLS ranges of multi-asset funds compared to the L&G multi-asset funds.

So, don't rule out whole of market options on the basis of a very very expensive restricted advice service.

Thanks, he did say he was independent and could recommend whole of market. It was my thoughts to maybe use L&G as I have pensions with them with low charges. My current fund charge is .15% so 0.25% in total.

I'll bear in mind your comments re other options being available.

What should I be looking for as a fee to review existing dc pots (6), consolidate and set up pre drawdown? Value circa £560K?

dunstonh

What should I be looking for as a fee to review existing dc pots (6), consolidate and set up pre drawdown? Value circa £560K?

circa £4k or under if none of them have any safeguarded benefits.

It was my thoughts to maybe use L&G as I have pensions with them with low charges. My current fund charge is .15% so 0.25% in total.

Is the PMC range of funds (usually tell by the fund name including initials or series)

Notfarfromtheborder

dunstonh said:

What should I be looking for as a fee to review existing dc pots (6), consolidate and set up pre drawdown? Value circa £560K?

circa £4k or under if none of them have any safeguarded benefits.

It was my thoughts to maybe use L&G as I have pensions with them with low charges. My current fund charge is .15% so 0.25% in total.

Is the PMC range of funds (usually tell by the fund name including initials or series)

Thanks, I can confirm it is a PMC fund, not sure if that is good / bad or what PMC stands for.....

Hence my need for advice I think.