IFA Charges

JJforever

I have just been sent new contract charges and just wondered if this was about average.  I am looking to get advice from them regarding my pensions.  One is a company DC pension and another is a private personal pension.

Lump Sum Investments and Pension Contributions / Transfers 
Amount invested
Up to 150k - 2% of the amount invested
Next 150k - £500k - 1.5% of the amount invested
Next 500k - £1m - 1% of the amount invested

Annuities
Purchase an annuity for £50k - cost would be £1,250
Purchase an annuity for £100k - cost would be £2,500
Purchase an annuity for £250k - cost would be £6,250
Purchase an annuity for £750k - cost would be £15k

They say an initial meeting is free.  Then it depends on the complexity of the work.  So non complex £500.  Complex £1500 - £2000.  Then a fuller review £3000.

I have dealt with them in the past and they were very helpful.  They are now going to merge with another firm so that's why they have sent this to me.

Thanks in advance.

dunstonh

Not as expensive as many of the FAs/wealth management firms, but the lack of a  cap or a tier that ends the charge means it could get very expensive.       Annuity pricing is very expensive.

MeteredOut

Ouch. Unless you have significant assets or complicated requirements, many here (including me) would recommend going down a simple index tracker route. You'll need your IFA (and please confirm they are an IFA, not a FA) to better those trackers by quite a bit to cover those charges as they compound over the years.

But, hey, the initial sales meeting is free

However, it sounds like you've liked this IFA from past dealings, so if you do decide to stay, you might want to ensure the "merge with another firm" doesn't mean "bought out by another firm and the IFA I've been dealing with is retiring and I'll now be working with a faceless company".