Pension advice cost

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  • pip895
    pip895 Posts: 1,178 Forumite
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    Could you pay extra into your company pension? That is often the most efficient method if its available.

    Another possibility might be to transfer the £50,000 into a SIPP and add the monthly payments to that.

    If you are happy to do a bit of research it isn't difficult putting together a suitable portfolio.
  • shilts
    shilts Posts: 78 Forumite
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    Thanks . I can pay extra into an AVC but these have not had particularly good returns . Not knowing much about all this I will certainly look into a SIPP . It's a bit of minefield to me to be honest and I really want to make sure that the right decision is made to maximise my pension . Nearly £1500 does seem rather expensive to me given what I need done but I guess this is the cost , thanks .
  • dunstonh
    dunstonh Posts: 116,376 Forumite
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    Personally, with £50k value, I wouldnt go with ongoing advice with the adviser. Stick with transactional. You can still use the adviser again later. But at £50k, you dont really need a yearly review.
    Nearly £1500 does seem rather expensive to me given what I need done

    Pension switches are a relatively high risk to an adviser. Most PI insurers ask specifically about the number of pension switches a firm does and adjust their premiums accordingly. Its a good chunk of work and needs third-party software and they are something the FCA always look at on visits. £1500 does not sound unreasonable. you can get cheaper but its in the ballpark of what you would expect.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Malthusian
    Malthusian Posts: 10,941 Forumite
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    shilts wrote: »
    Thanks . I can pay extra into an AVC but these have not had particularly good returns.

    What pip895 was driving at was whether the employer will match your contributions if you pay more in to their scheme, or whether they offer salary sacrifice (which means you save NI as well as income tax).

    The returns in an AVC should be little different to any other pension wrapper, even if the fund choice is more restricted.

    Is it 0.75% ongoing or 1%?
  • shilts
    shilts Posts: 78 Forumite
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    Thanks dunstonh, this is helpful .

    Malthusian . I currently pay a fixed 4.5% into my company pension whilst they make it up to 16% . There is no option to add further . There are two options for ongoing advice . 1% is for all the advice elements plus an annual review . 0.75% all the advice elements less the annual review , thanks .
  • Alexland
    Alexland Posts: 9,653 Forumite
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    edited 17 November 2017 at 11:06PM
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    Another option to consider if you want to transfer into and/or contribute to a simple pension with a good default investment strategy and low fees is the Aviva stakeholder.

    Usually you can only get this via an IFA but Cavendish will set it up for you for £35 (plus £35 for a transfer) and it's very simple to operate.

    https://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/aviva/

    https://www.aviva.co.uk/stakeholder-pension/

    Alex
  • Malthusian
    Malthusian Posts: 10,941 Forumite
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    shilts wrote: »
    Malthusian . I currently pay a fixed 4.5% into my company pension whilst they make it up to 16% . There is no option to add further . There are two options for ongoing advice . 1% is for all the advice elements plus an annual review . 0.75% all the advice elements less the annual review , thanks .

    Usually the ongoing fee would be on the expensive side, but given the small size of the pot and the ongoing contributions you would be hard pressed to find cheaper. Advisers charging 0.5% ongoing would probably tell you that your fund and contributions are too small for them to advise on.

    If you feel the assurance of having your pension monitored and reviewed is worth 0.75% - 1% then it's your money; otherwise I would agree with DunstonH's suggestion of asking for transactional advice, i.e a one-off fee to review the personal pension and the investments.
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