St. James' Place - Pensions - Am I stupid for being concerned?

Pemrock16

I’m looking for opinions on whether my concerns are valid or not as I’m not experienced in pensions or investments.

An advisor from St. James’ Place contacted me on LinkedIn, mentioned that they work with ‘my colleagues’ and offered a free initial review into whether they can help with my financial planning. For context, my pension is <£100k.

Four meetings later, no idea of costs given until the 4th meeting and a whole load of research makes me feel generally uncomfortable. The advisor is very confident and says all of the right things, but I just can’t shake my cynicism and inherent suspicious nature.

Here are my resulting concerns and what he’s responded back:

- SJP are one of the most expensive and there are some reports showing that fund performance isn’t exactly the best, so effectively paying more for average results. He said that E&Y did a report which shows SJP to be 4th cheapest of the top 20 firms overall.

- Early Withdrawal Charge – I read somewhere that if changes are made within that initial 6-year period, the clock restarts. I’m told this is incorrect.  

- Restricted advice – I read that it’s much better having an Independent Financial Advisor who isn’t restricted is better than a restricted advisor. The advisor says that they have global exposure and access to the best fund managers in the world which gives better flexibility for client fund selection. Does that access/exposure outweigh the fact that they are restricted only to SJP funds?

- I was concerned about the FSCS scheme if I invest all of my pension with SJP and the lack of protection for over £85k. He said that all pension investments at SJP are 100% FSCS protected which is no different to any other UK pension provider. I might be wrong on this, but it’s a costly mistake to make if I’m not and I’d be tied in for 6 years whilst whatever the pension grows to in that time over £85k wouldn’t be protected.

- Fees: it’s 1.76% per annum with an early withdrawal charge of 6%, decreasing by 1% each year for the first 6 years. I mentioned about SJP changing their fee structure in late 2025 due to increased regulatory scrutiny (consumer duty/fairness/transparency) and client concerns. 

- Negative client feedback: there’s an unquestionable amount for SJP overall. But barely any feedback online in independent locations for this particular advisor (the only client feedback is on their own LinkedIn and SJP website, etc.).

- I mentioned that I don’t know if I would have necessarily chosen SJP if I’d have done my research before being ‘cold’called’ on LinkedIn which was met with a comment that made me feel a little bit stupid/naïve. He said that it was possibly an easy response to those that haven’t worked with someone like him before. I haven’t worked with a FA advisor before but to suggest that my uneasiness about working with SJP or him is down to my naivety does make me feel a little bit like he thinks I’m stupid.

- I mentioned that I’d like to wait until the new SJP fee structure is in place, but it seems like he wants to steam ahead regardless. It feels like he wants to get this all sorted quickly so that I'm tied into the 6 year exit fee schedule before the new structure comes into place which makes me feel uncomfortable. 

 

Am I stupid for challenging all of this and not feeling comfortable with moving forwards?

Aylesbury_Duck

Pemrock16 said:

I’m looking for opinions on whether my concerns are valid or not as I’m not experienced in pensions or investments.

An advisor from St. James’ Place contacted me on LinkedIn, mentioned that they work with ‘my colleagues’ and offered a free initial review into whether they can help with my financial planning. For context, my pension is <£100k.

Four meetings later, no idea of costs given until the 4th meeting and a whole load of research makes me feel generally uncomfortable. The advisor is very confident and says all of the right things, but I just can’t shake my cynicism and inherent suspicious nature.

Here are my resulting concerns and what he’s responded back:

- SJP are one of the most expensive and there are some reports showing that fund performance isn’t exactly the best, so effectively paying more for average results. He said that E&Y did a report which shows SJP to be 4th cheapest of the top 20 firms overall.

- Early Withdrawal Charge – I read somewhere that if changes are made within that initial 6-year period, the clock restarts. I’m told this is incorrect.  

- Restricted advice – I read that it’s much better having an Independent Financial Advisor who isn’t restricted is better than a restricted advisor. The advisor says that they have global exposure and access to the best fund managers in the world which gives better flexibility for client fund selection. Does that access/exposure outweigh the fact that they are restricted only to SJP funds?

- I was concerned about the FSCS scheme if I invest all of my pension with SJP and the lack of protection for over £85k. He said that all pension investments at SJP are 100% FSCS protected which is no different to any other UK pension provider. I might be wrong on this, but it’s a costly mistake to make if I’m not and I’d be tied in for 6 years whilst whatever the pension grows to in that time over £85k wouldn’t be protected.

- Fees: it’s 1.76% per annum with an early withdrawal charge of 6%, decreasing by 1% each year for the first 6 years. I mentioned about SJP changing their fee structure in late 2025 due to increased regulatory scrutiny (consumer duty/fairness/transparency) and client concerns. 

- Negative client feedback: there’s an unquestionable amount for SJP overall. But barely any feedback online in independent locations for this particular advisor (the only client feedback is on their own LinkedIn and SJP website, etc.).

- I mentioned that I don’t know if I would have necessarily chosen SJP if I’d have done my research before being ‘cold’called’ on LinkedIn which was met with a comment that made me feel a little bit stupid/naïve. He said that it was possibly an easy response to those that haven’t worked with someone like him before. I haven’t worked with a FA advisor before but to suggest that my uneasiness about working with SJP or him is down to my naivety does make me feel a little bit like he thinks I’m stupid.

- I mentioned that I’d like to wait until the new SJP fee structure is in place, but it seems like he wants to steam ahead regardless. It feels like he wants to get this all sorted quickly so that I'm tied into the 6 year exit fee schedule before the new structure comes into place which makes me feel uncomfortable. 

 

Am I stupid for challenging all of this and not feeling comfortable with moving forwards?

This bit alone would turn me right off.

My advice would be to pause.  You are under no pressure to decide anything now.  I have learned a great deal from just browsing this forum, knowledge that will put me in a much stronger position should I ever decide to seek professional advice.  It's like taking your car to a garage for work - you will be in a much better position if you understand something about vehicle maintenance, because you'll be able to better question and work with the professionals who carry out the work.  There's no need to become an expert, but you do need to know what questions to ask the expert.

Tell him you want some time to think it over and not to contact you unless you reach out to him.

hotncold47

I'm amazed you have listed all the above and you are still even considering SJP?

dunstonh

- SJP are one of the most expensive and there are some reports showing that fund performance isn’t exactly the best, so effectively paying more for average results. He said that E&Y did a report which shows SJP to be 4th cheapest of the top 20 firms overall.

That is SPIN.      When you seek advice, you either use an FA or an IFA.      The vast majority of IFAs are small local firms of 1-5 advisers.    So, they wouldn't be anywhere near the top 20 firms list.     The top 20 are all national salesforces and all salesforces are expensive.    Going by "top 20" firms effectively eliminates the cheaper distribution methods.

- Early Withdrawal Charge – I read somewhere that if changes are made within that initial 6-year period, the clock restarts. I’m told this is incorrect.  

SJP are the only company that has this.  You would not get any backend charging elsewhere.    Any top ups see the count restart for them.

- Restricted advice – I read that it’s much better having an Independent Financial Advisor who isn’t restricted is better than a restricted advisor. The advisor says that they have global exposure and access to the best fund managers in the world which gives better flexibility for client fund selection. Does that access/exposure outweigh the fact that they are restricted only to SJP funds?

SJP only offer their internal fund range.  They use a number of external fund managers for some of their funds.   IFAs (or DIY) has access to the whole of market.   Those same fund managers are available in the original fund and not an SJP mirror version.   

- I was concerned about the FSCS scheme if I invest all of my pension with SJP and the lack of protection for over £85k. He said that all pension investments at SJP are 100% FSCS protected which is no different to any other UK pension provider. I might be wrong on this, but it’s a costly mistake to make if I’m not and I’d be tied in for 6 years whilst whatever the pension grows to in that time over £85k wouldn’t be protected.

FSCS protection is not really an issue with unit linked investments.  I wouldn't be giving it the concern you are.

- Fees: it’s 1.76% per annum with an early withdrawal charge of 6%, decreasing by 1% each year for the first 6 years. I mentioned about SJP changing their fee structure in late 2025 due to increased regulatory scrutiny (consumer duty/fairness/transparency) and client concerns. 

Vs circa 0.15% platform, 0.20% fund and then add on IFA fee, which even at the top end 1% is 1.35%.  You probably dont need ongoing servicing from the adviser, so circa 0.35% for transactional advice via an IFA.

What is wrong with what you already have?   

Am I stupid for challenging all of this and not feeling comfortable with moving forwards?

The complete opposite.   Your choice should either be to DIY or use an IFA.  Not use an FA.

You need to have a bit more conviction and ask yourself:
a) you know SJP are amongst the most expensive in the UK, so why are you considering them?
b)  SJP are the only company to have backend exit charges. Why are you considering them?
c) SJP are restricted to their own offering.   Alternatives are whole of market.  Why are you considering the restricted option?

Cobbler_tone

I think you have answered all of your own questions.

I have had one or two 'good' approaches on Linkedin over the years and thousands of time wasters or speculators. If I want something I ask for it, then it is a case of filtering through the dross.

I'd cut him off.

Sea_Shell

If you feel uncomfortable, trust your gut, not a salesman.

No rush.
Take your time.
Research all other options.

zagfles

They used LinkedIn to "cold call" you?? Does that comply with LinkedIn's terms? I don't use it but I thought it was about jobs, recruitment, skills etc. Anyone using it to try to sell you stuff should be ignored just like a cold caller on your landline. 

Cobbler_tone

zagfles said:

They used LinkedIn to "cold call" you?? Does that comply with LinkedIn's terms? 

Touting for business and 'selling' is about 90% of the contact activity on LinkedIn. 

Marcon

If somebody contacted me saying they 'work with my colleagues' I'd ask them to contact a couple of those colleagues and get their permission for me to know their identity and contact 'the colleagues' direct to see what they thought of the services being offered.

ali_bear

Block and report. 

Sounds like this guy sees you as a potential asset, not a client. Possibly he used to work in recruitment? 

jimjames

As per the comment above, what's wrong with your current setup that you want to change?