Do I have to pay a fortune to get a small pension sorted?!

kr56

Hi all.  I have less than £70,000 in combined pensions and am trying to find the simplest, most trustworthy, cost effective way to get at it.  Most IFAs seem to charge a large chunk of whatever I will get. I know they have to be paid for their expertise but to be honest I think most of it comes from an automated system these days.  I dont want anything fancy, and I dont have a 'portfolio'!! I wish!  Any suggestions please as to how I can go about doing this?

Dazed_and_C0nfused

kr56 said:

Hi all.  I have less than £70,000 in combined pensions and am trying to find the simplest, most trustworthy, cost effective way to get at it.  Most IFAs seem to charge a large chunk of whatever I will get. I know they have to be paid for their expertise but to be honest I think most of it comes from an automated system these days.  I dont want anything fancy, and I dont have a 'portfolio'!! I wish!  Any suggestions please as to how I can go about doing this?

Why do you think you need advice?

You might do but most DC pensions can be accessed without advice.

kr56

Also, what are standard fees these days for advice?  

MeteredOut

kr56 said:

Also, what are standard fees these days for advice?  

There is no standard, but I'd not recommend anyone paying more than 1% all in (IFA and fund fees).

But if you are simply wanting to find the most tax efficient way to utilise your pots, post details here and you'll get plenty of feedback.

DB or DC pots? Fund value in each? Any protected benefits in each? Have you taken Tax Free Cash from any? What age are you? What is your state pension prediction? What other income do you have that might mean pension drawdown will put you into a higher tax bracket.

Hoenir

kr56 said:

Also, what are standard fees these days for advice?  

Make some phone calls and enquire. 

Albermarle

If you want some good feedback to your post, you need to give more details. 

 I have less than £70,000 in combined pensions

How many pensions do you have and are they all DC ( Defined Contribution ) pensions? If you are not sure what that means, then read this link.
Defined contribution pension schemes | MoneyHelper
Or are any of them DB ( Defined benefit ) pensions.
Defined benefit pensions | MoneyHelper

Also what do you mean exactly by 'get at it' . Do you want to withdraw all of it, have a regular income , or what ?

If your situation is relatively straightforward, you may not need to pay for advice. 
You could book a free session with PensionWise
Pension Wise: free pension guidance | MoneyHelper

singhini

No you don't have to pay a fortune, but we need more information to be better placed to help you.

£70,000 in combined pensions -----> more detail please (how many pensions? currently value of each pension? which type of pensions are they i.e. DB or DC?

You said "get at it"  -----> what do you mean, do you want to start taking your pension? if so, do you want an annuity or do you want to take lump sums? and if its take lump sums, is it on a regular basis with a fix amount each month or occasionally take money? Or do you want to "get at it" and put it all into one pot? and if so, what are your plans thereafter?

How old are you? when do you want to retire? are your currently working? 

Its easy for me to say to you, open a SIPP and transfer all the DC pension into it (holding it as cash) and hopefully the SIPP pays interest on cash balances. Then make sure the SIPP provider has your correct tax code and then ask then for £16,760 (making sure they give you 25% of this tax free i.e. £4,190 and the remaining £12,570 you receive on a monthly basis of £1,047.50p thus you have paid no tax [caveat: aslong as you have no other income]. If you have any DB pensions, just leave them. PS: remember to stick £240 back into the SIPP each month as it will earn £60 in the form of tax relief.
This is what im doing but it might not be the right thing for you!

Marcon

kr56 said:

Hi all.  I have less than £70,000 in combined pensions and am trying to find the simplest, most trustworthy, cost effective way to get at it.  Most IFAs seem to charge a large chunk of whatever I will get. I know they have to be paid for their expertise but to be honest I think most of it comes from an automated system these days.  I dont want anything fancy, and I dont have a 'portfolio'!! I wish!  Any suggestions please as to how I can go about doing this?

A free chat with PensionWise might be no bad starting point, if only to get your head round the basic options and the jargon. https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

You seem to be making something pretty basic into something needlessly complex. Is there some important info missing, such as you are no longer a UK resident and you have pensions where an adviser has to be involved as an intermediary before you can access the loot?

kr56

Marcon said:

kr56 said:

Hi all.  I have less than £70,000 in combined pensions and am trying to find the simplest, most trustworthy, cost effective way to get at it.  Most IFAs seem to charge a large chunk of whatever I will get. I know they have to be paid for their expertise but to be honest I think most of it comes from an automated system these days.  I dont want anything fancy, and I dont have a 'portfolio'!! I wish!  Any suggestions please as to how I can go about doing this?

A free chat with PensionWise might be no bad starting point, if only to get your head round the basic options and the jargon. https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

You seem to be making something pretty basic into something needlessly complex. Is there some important info missing, such as you are no longer a UK resident and you have pensions where an adviser has to be involved as an intermediary before you can access the loot?

Thats kinda my point. It does seem needlessly complex and expensive going by what IFAs say. On the other hand I cant get anyone to just answer in simple terms.  

dunstonh

 Most IFAs seem to charge a large chunk of whatever I will get. I know they have to be paid for their expertise but to be honest I think most of it comes from an automated system these days. 

What you think and the reality are two different things.

Any suggestions please as to how I can go about doing this?

You either DIY or you use an adviser.   It really boils down to those two choices.

There is no standard, but I'd not recommend anyone paying more than 1% all in (IFA and fund fees).

The op only has a small value.   Its actually not going to be cost effective for an IFA to offer ongoing servicing.   Its more suitable for transactional.    And quite possibly an annuity.

kr56

singhini said:

No you don't have to pay a fortune, but we need more information to be better placed to help you.

£70,000 in combined pensions -----> more detail please (how many pensions? currently value of each pension? which type of pensions are they i.e. DB or DC?

You said "get at it"  -----> what do you mean, do you want to start taking your pension? if so, do you want an annuity or do you want to take lump sums? and if its take lump sums, is it on a regular basis with a fix amount each month or occasionally take money? Or do you want to "get at it" and put it all into one pot? and if so, what are your plans thereafter?

How old are you? when do you want to retire? are your currently working? 

Its easy for me to say to you, open a SIPP and transfer all the DC pension into it (holding it as cash) and hopefully the SIPP pays interest on cash balances. Then make sure the SIPP provider has your correct tax code and then ask then for £16,760 (making sure they give you 25% of this tax free i.e. £4,190 and the remaining £12,570 you receive on a monthly basis of £1,047.50p thus you have paid no tax [caveat: aslong as you have no other income]. If you have any DB pensions, just leave them. PS: remember to stick £240 back into the SIPP each month as it will earn £60 in the form of tax relief.
This is what im doing but it might not be the right thing for you!

singhini said:

No you don't have to pay a fortune, but we need more information to be better placed to help you.

£70,000 in combined pensions -----> more detail please (how many pensions? currently value of each pension? which type of pensions are they i.e. DB or DC?

You said "get at it"  -----> what do you mean, do you want to start taking your pension? if so, do you want an annuity or do you want to take lump sums? and if its take lump sums, is it on a regular basis with a fix amount each month or occasionally take money? Or do you want to "get at it" and put it all into one pot? and if so, what are your plans thereafter?

How old are you? when do you want to retire? are your currently working? 

Its easy for me to say to you, open a SIPP and transfer all the DC pension into it (holding it as cash) and hopefully the SIPP pays interest on cash balances. Then make sure the SIPP provider has your correct tax code and then ask then for £16,760 (making sure they give you 25% of this tax free i.e. £4,190 and the remaining £12,570 you receive on a monthly basis of £1,047.50p thus you have paid no tax [caveat: aslong as you have no other income]. If you have any DB pensions, just leave them. PS: remember to stick £240 back into the SIPP each month as it will earn £60 in the form of tax relief.
This is what im doing but it might not be the right thing for you!

ooh, interesting thought! Now you see nobody has mentioned SIPPs!  Its 2 pensions, 60k plus 10k roughly, DC. At a very basic level I want the tax free sum plus a monthly income. This for immediate access as I am already retired.