Pension advice

greensmoker · 18 June 2018 at 2:23PM

Hello,
I set up a personal pension with a pension advisor 4 years ago. He set me up with Aviva.
I have since contributed £240 per month.

My question is: how much is input is the financial advisor meant to have in my pension. Is he meant to review periodically and advise of changes of funds to invest in?
I haven't heard from him since he set up my pension and I don't think it's doing very well.
I called today and asked for advice and he said we can have a review.
My question is; I was of the understanding that he was constantly monitoring my pension and would advise of change if and when. I am wrong? Am I meant to be doing this myself?

Sorry, I know I don't have much clue about these things which is why I paid for the service in the first place.

Thanks for any advice

HappyHarry · 18 June 2018 at 2:29PM

It will depend on what was agreed with the adviser at the time.

If the adviser is being paid an ongoing fee, then you would expect (and the adviser would be obliged to hold) an annual review.

If the adviser was just paid an initial fee, and no ongoing fee, then the adviser would not be expected to review the pension after setting it up.

greensmoker · 18 June 2018 at 2:31PM

Thanks for your reply.
I paid £240 initially. I'm pretty sure he said he would review it and let me know if he advises differently further down the line.
He definitely does get a commission on a monthly basis too - but I think that is from Aviva and doesn't come our of my contributions.

Dazed_and_confused · 18 June 2018 at 2:32PM

Realistically only you yourself can answer these questions

Probably best place to start is to look at the contract you had with the advisor.

This will presumably show what you were actually paying them for.

And you can then determine if they are providing this service or not.

dunstonh · 18 June 2018 at 2:35PM

My question is: how much is input is the financial advisor meant to have in my pension. Is he meant to review periodically and advise of changes of funds to invest in?

It depends on how you have employed the adviser.

if you paid them to only set the pension up (i.e. transactional one off) then that is all they will do. Typically using simplified investments that require no adviser rebalancing or reviews.

if you pay them to provide ongoing servicing, then they will provide that ongoing servicing.

My question is; I was of the understanding that he was constantly monitoring my pension and would advise of change if and when. I am wrong? Am I meant to be doing this myself?

Comes back to whether you are paying them to do that or not.

I haven't heard from him since he set up my pension and I don't think it's doing very well.

I would have thought a pension set up four years ago would be doing very well (even in the simple funds) regardless of risk profile. Some more than others obviously.

There was a stockmarket decline in 2015 and another in Winter/Spring just gone. However, nothing unusual. So, why do you think it is not doing well?

He definitely does get a commission on a monthly basis too - but I think that is from Aviva and doesn't come our of my contributions.

That is unlikely. Commission was banned at the end of December 2012. 4 years ago was 2014. So, there should be no commission. All new business arranged from 1st Jan 2013 is fee based only.

HappyHarry · 18 June 2018 at 2:36PM

If the adviser gets commission, the pension must have been set up more than 4 years ago (i.e. before 2013).

In this case, the adviser isn't obliged to provide an ongoing service, but many do so as it is good practice.

Pension advice

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