Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • oysterman
    • By oysterman 12th Jan 19, 9:59 AM
    • 706Posts
    • 89Thanks
    oysterman
    Appointment with IFA coming up, should i
    • #1
    • 12th Jan 19, 9:59 AM
    Appointment with IFA coming up, should i 12th Jan 19 at 9:59 AM
    have concerns?


    Morning people, a brief history. 2 years ago i had meeting's with 2 different IFA's regarding various pension pot's i had. Not being pension savvy i wanted to know if i should be consolidating the pot's or leaving them alone. They both came back with the same answer, that they were ok & i would'nt gain by consolidating them.


    I received a letter before xmas from a one of the firm's, but not the same advisor saying would i like a review. Had a brief phone conversation with him & arranged a meeting at my house. The main thing i'm concerned with is, he is now talking about consolidating some of my pension's. Obviously it would be my decission to go ahead with any of his advice, but should i be wary.
    cheers for any replies
    if i had known then what i know now
Page 1
    • OldMusicGuy
    • By OldMusicGuy 12th Jan 19, 10:12 AM
    • 737 Posts
    • 1,519 Thanks
    OldMusicGuy
    • #2
    • 12th Jan 19, 10:12 AM
    • #2
    • 12th Jan 19, 10:12 AM
    You should do some reading and understand what type of pensions you have. If these are defined contribution pensions, you may not need an IFA to consolidate them if that's what you want to do. I consolidated six pensions together myself and it cost nothing.

    You need to look at your existing pension scheme documentation to find out what type of pensions they are, if they have any conditions attached to them that might impact consolidating them (for example, you might lose valuable benefits from the existing pension scheme like a guaranteed annuity rate).

    You also need to understand (if you don't already) how DC pensions work. These have two elements, the pension platform and the funds in which you money is invested. It's the investment choices that dictate how your pensions perform. Thus consolidating them doesn't mean they will do any better. They might even do worse if they are invested differently.

    Consolidating DC pensions doesn't give you any advantage apart from ease of administration (everything in one place) and maybe more choices about how you can invest the money, together with more flexibility in drawdown. For example, some older DC pensions have a limited choice of funds and don't allow flexible drawdown. That might sound bad, but then they may well be lower cost, and you might not choose a different style of investment when you move.

    I did consolidate all mine because I wanted to manage everything together on a platform with a wide range of investment choices.

    If your pensions are defined benefit pensions, then you must seek IFA advice if you want to transfer them. That is a very different choice to make (and one that I personally would be very wary of).

    You should read up on all of this stuff BEFORE you meet with the IFA. That way you will be able to have a more informed discussion with them. If you need it, there's good basic information here https://www.moneyadviceservice.org.uk/en# under the "Retirement" tab and also here: https://www.pensionwise.gov.uk/en
    • dunstonh
    • By dunstonh 12th Jan 19, 10:34 AM
    • 96,438 Posts
    • 64,328 Thanks
    dunstonh
    • #3
    • 12th Jan 19, 10:34 AM
    • #3
    • 12th Jan 19, 10:34 AM
    The main thing i'm concerned with is, he is now talking about consolidating some of my pension's.
    Not unexpected. Costs have continued to fall and what may have been marginal once before may be viable now.

    If the adviser is employed on an ongoing basis then usually transactions such as provider change are carried out with no initial charge/switching charge (as its part of the ongoing service).

    but should i be wary.
    Seeing as you have given us very little to go on, it is hard to comment on that.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Albermarle
    • By Albermarle 12th Jan 19, 10:51 AM
    • 312 Posts
    • 159 Thanks
    Albermarle
    • #4
    • 12th Jan 19, 10:51 AM
    • #4
    • 12th Jan 19, 10:51 AM
    Depending on the amounts involved , it can be that putting all your funds with one pension provider will result in a discount.
    Often ( although each provider will be different ) any pot > 50K sometimes gets a discount and then > 250K & 500K there can be more discounts .
    However to repeat what has already been said , the pension provider is only the administrative framework and your money is actually invested in funds ( normally) . With some pension providers you can only invest in a restricted number of funds and with others you have a wider choice. However if you are not a very active investor this does not matter that much .
    • squirrelpie
    • By squirrelpie 12th Jan 19, 11:59 AM
    • 117 Posts
    • 50 Thanks
    squirrelpie
    • #5
    • 12th Jan 19, 11:59 AM
    • #5
    • 12th Jan 19, 11:59 AM
    Had a brief phone conversation with him & arranged a meeting at my house. The main thing i'm concerned with is, he is now talking about consolidating some of my pension's. Obviously it would be my decission to go ahead with any of his advice, but should i be wary.
    I would say have the meeting by all means but do not agree or sign anything at the meeting. Say you need to sleep on it. Then you can think about it it and if you wish, post details of any proposals on here for comment.
    • BLB53
    • By BLB53 12th Jan 19, 12:43 PM
    • 1,491 Posts
    • 1,357 Thanks
    BLB53
    • #6
    • 12th Jan 19, 12:43 PM
    • #6
    • 12th Jan 19, 12:43 PM
    The main thing i'm concerned with is, he is now talking about consolidating some of my pension's. Obviously it would be my decission to go ahead with any of his advice, but should i be wary.
    So obviously ask him what has changed in the past couple of years which makes him think the advice from the other two is no longer appropriate for your situation.

    What ball park figures are involved?
    If you choose index funds you can never outperform the market.
    If you choose managed funds there's a high probability you will underperform index funds.
    • greenglide
    • By greenglide 12th Jan 19, 1:49 PM
    • 3,231 Posts
    • 2,111 Thanks
    greenglide
    • #7
    • 12th Jan 19, 1:49 PM
    • #7
    • 12th Jan 19, 1:49 PM
    Have you checked to ensure that he / his firm is Independent? Just because he / they were independent doesn't mean he / they still are.
    • oysterman
    • By oysterman 13th Jan 19, 3:37 PM
    • 706 Posts
    • 89 Thanks
    oysterman
    • #8
    • 13th Jan 19, 3:37 PM
    • #8
    • 13th Jan 19, 3:37 PM
    So obviously ask him what has changed in the past couple of years which makes him think the advice from the other two is no longer appropriate for your situation.

    What ball park figures are involved?
    Originally posted by BLB53

    That will be the first question i ask. At a rough guess, the penson pot's toatal about 150,000
    if i had known then what i know now
    • oysterman
    • By oysterman 13th Jan 19, 3:50 PM
    • 706 Posts
    • 89 Thanks
    oysterman
    • #9
    • 13th Jan 19, 3:50 PM
    • #9
    • 13th Jan 19, 3:50 PM
    Not unexpected. Costs have continued to fall and what may have been marginal once before may be viable now.

    If the adviser is employed on an ongoing basis then usually transactions such as provider change are carried out with no initial charge/switching charge (as its part of the ongoing service).



    Seeing as you have given us very little to go on, it is hard to comment on that.
    Originally posted by dunstonh

    What info do you require to comment further?
    if i had known then what i know now
    • Albermarle
    • By Albermarle 13th Jan 19, 4:52 PM
    • 312 Posts
    • 159 Thanks
    Albermarle
    You should also be aware that if these are simple DC pots, then combining them is easy to do yourself.
    If you are lacking in investment knowledge/confidence then an IFA can help you with the investment fund choices, either as a one off or on an ongoing basis. In this case the IFA charge could be worth it.
    However if they try and charge you a lot for the actual transfer/consolidation then be aware it is normally something you can do yourself or zero cost.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,111Posts Today

8,543Users online

Martin's Twitter