Pension advisors - on-advice charges

bad_knees21

https://forums.moneysavingexpert.com/discussion/comment/82123296#Comment_82123296

Yes, this is what I'm worried about - the 0.95% charge

QrizB

Yes, this is what I'm worried about - the 0.95% charge

They're also charging you almost 5% (£1400 of £30000) up-front to consolidate your pensions, which is something you could probably do yourself for free.

bad_knees21

https://forums.moneysavingexpert.com/discussion/comment/82123345#Comment_82123345

Yes, that's correct. It's given me a lot of food for thought for sure. I'm glad I asked before just saying yes for the IFA to just do it!

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82123347#Comment_82123347

It is probably worth noting that it is unusual for an IFA to be interested in a client with 'only' £30K. Maybe because of your age they are hoping to hook you in for life. Or maybe they are a low cost internet only type operation ?

In theory it is possible just to pay the £1400 for them to consolidate the pensions ( although that is easy enough to do yourself) and choose an appropriate investment fund ( less easy if you have no idea) . Then you monitor it yourself with no ongoing charge of 0.95%.

However if you suggest this to them I would guess they would lose interest in working with you.

LHW99

You haven't said who the workplace pension is with, but if you want everything in one place (at the moment) why not see if you can transfer the £30k into your current workplacce pension?

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82123640#Comment_82123640

Did the IFA discuss that possibility?

bad_knees21

https://forums.moneysavingexpert.com/discussion/comment/82123710#Comment_82123710

I think they did, but there was an explanation why they didn't recommend it, maybe it was the charges. My current workplace pension is with Royal London - I have done some research and they do have different investment options that have a bit more risk associated with them that could be a good route to investigate

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82123721#Comment_82123721

Maybe. Best to check it though. Without knowing what they said it is easy to be cynical about why they may not have recommended it and that could be unfair.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82123721#Comment_82123721

Each IFA has their preferences for choice of platform - they want as many clients as possible on as few platforms as possible, for ease of admin etc .

For sure many IFA's are happy with Royal London, but some will have other preferences.

artyboy

Definitely a vote here for educating yourself on the basics and DIYing for now - at this level it's definitely doable with very limited risk to you. If it was 10 or 100 times the value then obviously the downside of rookie mistakes could be a lot higher.

Mind you, I'm surprised our resident anti-IFA poster hasn't made some comment about bloodsucking leeches. Or similar. I guess we all need a holiday…