Fees on pension

redmalc

hi all

I utilise a Financial Advisor to fully manage my sipp, he does all of the fund selecting and purchasing of same, what would you expect the fees to be on a 850k portfolio

kipsterno1

Have they increased since you last asked?

mrklaw

1-1.5% per year? assuming an Assets Under Management setup. And considering IFA fees + platform fees + fund fees that could quickly add up

IFA fees alone (as you’d pay platform/fund fees everywhere) - 1% max?

redmalc

https://forums.moneysavingexpert.com/discussion/comment/82083320#Comment_82083320

very clever, why do you bother getting involved , obviously things have changed

El_Torro

For a £850k portfolio I would expect the IFA to charge no more than 0.5% as an ongoing charge. Then there's the fund fees and platform fees on top of that. I'd say 1% or less all in is reasonable.

Albermarle

https://forums.moneysavingexpert.com/discussion/6677802/fees-on-pension

Approx idea as follows

Due to the size of fund, the IFA fee should be 0.5%

Platform fee 0.2%

Fund fees from 0.2% ( passive ) to 1 % (active) to 1.5% ( Ethical) , or any mixture inbetween

Marcon

https://forums.moneysavingexpert.com/discussion/comment/82083328#Comment_82083328

But not that much - £750K to the current £850K isn't a sufficiently huge jump to put you into a 'different' sort of fee bracket. The answers from @dunstonh in August 2022 are likely to be relevant:

https://forums.moneysavingexpert.com/discussion/6382088/ifa-charges

Why not give a breakdown of the fees you're paying and you're more likely to get a prompt and well informed response from him or one of the other experienced IFAs answering on this forum? Otherwise you're likely to get more guesswork from people who are generally answering based on their own experience - a limited sample size of one per answer!

dunstonh

I utilise a Financial Advisor to fully manage my sipp, he does all of the fund selecting and purchasing of same, what would you expect the fees to be on a 850k portfolio

It will vary on the type of firm you use. City firms tend to be more expensive than rural firms. Larger firms tend to be more expensive than smaller firms. Some offer a prestige service for a premium. Others focus on low costs.

On an 850k portfolio, I would be targeting around 0.50% per annum for the adviser fee and in the teens for the platform fee (0.16% ballpark). Portfolio OCF around 0.10% to 0.20%. IFAs have to include transaction costs in their disclosures even though everyone ignores them. So, disregard that column on the charges disclosure table.

If your total costs are in the 0.8x% range, you are in the right ballpark.