Pension Query

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Flip

Flip

Winger
HI - I have a few pensions which are dormant so I spoke to a financial advisor, however I want to check he isn't taking my eyes out as I'm a bit suspicious.

I want to consolidate two pensions into one worth ~£130K, he did various research and has come up with a recommendation with charges of 0.45% from the provider - so far so good.

Now the bit that I am querying - he then said in order to do this he would need a 3% one off charge up front ~£3,800 which I pulled a face at and he said he could do it for £3K and then on-going 0.5% charges to review pension on a six monthly basis, provide advice etc. Is this normal or is he pulling a flanker?

Just thought I'd ask your opinion, and can any recommend an IFA in the North East for this sort of thing so I can compare?

Cheers
 


Flip said:
HI - I have a few pensions which are dormant so I spoke to a financial advisor, however I want to check he isn't taking my eyes out as I'm a bit suspicious.

I want to consolidate two pensions into one worth ~£130K, he did various research and has come up with a recommendation with charges of 0.45% from the provider - so far so good.

Now the bit that I am querying - he then said in order to do this he would need a 3% one off charge up front ~£3,800 which I pulled a face at and he said he could do it for £3K and then on-going 0.5% charges to review pension on a six monthly basis, provide advice etc. Is this normal or is he pulling a flanker?

Just thought I'd ask your opinion, and can any recommend an IFA in the North East for this sort of thing so I can compare?

Cheers
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You can transfer them into one yourself, it is usually pretty straightforward and loads of providers have funds that have charges capped at 0.5% or lower. You just need to find out which one or if all of them will accept transfers in.

Tell him to go and jump.
 
Nope but I do know they are stiffing me for 1% in both cases so wanted an independent to take a look

Pop said:
You can transfer them into one yourself, it is usually pretty straightforward and loads of providers have funds that have charges capped at 0.5% or lower. You just need to find out which one or if all of them will accept transfers in.

Tell him to go and jump.
Click to expand...

Surely I'd be in a good position if I had an expert take a look?
 
Flip said:
Nope but I do know they are stiffing me for 1% in both cases so wanted an independent to take a look



Surely I'd be in a good position if I had an expert take a look?
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3k sounds a lot for completing a few transfer forms and what will be generic advice.

You'll achieve reasonable returns in most providers default funds and if you want to switch funds you can also do this yourself.

@Shirley Shammel is an IFA, send him a PM
 
Flip said:
HI - I have a few pensions which are dormant so I spoke to a financial advisor, however I want to check he isn't taking my eyes out as I'm a bit suspicious.

I want to consolidate two pensions into one worth ~£130K, he did various research and has come up with a recommendation with charges of 0.45% from the provider - so far so good.

Now the bit that I am querying - he then said in order to do this he would need a 3% one off charge up front ~£3,800 which I pulled a face at and he said he could do it for £3K and then on-going 0.5% charges to review pension on a six monthly basis, provide advice etc. Is this normal or is he pulling a flanker?

Just thought I'd ask your opinion, and can any recommend an IFA in the North East for this sort of thing so I can compare?

Cheers
Click to expand...
have you thought about putting some into a more aggressive investment portfolio?
 
Flip said:
HI - I have a few pensions which are dormant so I spoke to a financial advisor, however I want to check he isn't taking my eyes out as I'm a bit suspicious.

I want to consolidate two pensions into one worth ~£130K, he did various research and has come up with a recommendation with charges of 0.45% from the provider - so far so good.

Now the bit that I am querying - he then said in order to do this he would need a 3% one off charge up front ~£3,800 which I pulled a face at and he said he could do it for £3K and then on-going 0.5% charges to review pension on a six monthly basis, provide advice etc. Is this normal or is he pulling a flanker?

Just thought I'd ask your opinion, and can any recommend an IFA in the North East for this sort of thing so I can compare?

Cheers
Click to expand...

Tell him to piss off
 
Flip said:
HI - I have a few pensions which are dormant so I spoke to a financial advisor, however I want to check he isn't taking my eyes out as I'm a bit suspicious.

I want to consolidate two pensions into one worth ~£130K, he did various research and has come up with a recommendation with charges of 0.45% from the provider - so far so good.

Now the bit that I am querying - he then said in order to do this he would need a 3% one off charge up front ~£3,800 which I pulled a face at and he said he could do it for £3K and then on-going 0.5% charges to review pension on a six monthly basis, provide advice etc. Is this normal or is he pulling a flanker?

Just thought I'd ask your opinion, and can any recommend an IFA in the North East for this sort of thing so I can compare?

Cheers
Click to expand...
1% a year seems fair but the up front charge seems steep. he's testing you out there IMO
 
Flip said:
HI - I have a few pensions which are dormant so I spoke to a financial advisor, however I want to check he isn't taking my eyes out as I'm a bit suspicious.

I want to consolidate two pensions into one worth ~£130K, he did various research and has come up with a recommendation with charges of 0.45% from the provider - so far so good.

Now the bit that I am querying - he then said in order to do this he would need a 3% one off charge up front ~£3,800 which I pulled a face at and he said he could do it for £3K and then on-going 0.5% charges to review pension on a six monthly basis, provide advice etc. Is this normal or is he pulling a flanker?

Just thought I'd ask your opinion, and can any recommend an IFA in the North East for this sort of thing so I can compare?

Cheers
Click to expand...

Mate. You need a second opinion.

This is the last guy I used. Works on sea road out of the hunters estate agents

Brian IFA
07775504884
 
Just sent you a PM

Pop said:
3k sounds a lot for completing a few transfer forms and what will be generic advice.

You'll achieve reasonable returns in most providers default funds and if you want to switch funds you can also do this yourself.

@Shirley Shammel is an IFA, send him a PM
Click to expand...

Thanks again mate.
 
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Flip said:
HI - I have a few pensions which are dormant so I spoke to a financial advisor, however I want to check he isn't taking my eyes out as I'm a bit suspicious.

I want to consolidate two pensions into one worth ~£130K, he did various research and has come up with a recommendation with charges of 0.45% from the provider - so far so good.

Now the bit that I am querying - he then said in order to do this he would need a 3% one off charge up front ~£3,800 which I pulled a face at and he said he could do it for £3K and then on-going 0.5% charges to review pension on a six monthly basis, provide advice etc. Is this normal or is he pulling a flanker?

Just thought I'd ask your opinion, and can any recommend an IFA in the North East for this sort of thing so I can compare?

Cheers
Click to expand...
If I was in your position I would definitely seek advice from a financial advisor.

An advisor would check out whether you have any existing guarantees that apply in connection with your existence schemes. These could be things like guaranteed growth rates in future or guaranteed annuity rates when you come to take the benefits from your pensions. n answer advisor would also be able to check whether you may be entitled to more tax-free cash than the standard 25% because this again would be a factor on whether you would decide to transfer your schemes across to something new.

In the financial world cheaper does not necessarily mean better so I would look at the net returns of investments rather than just the annual management charge of a particular investment fund.

The other issue to consider is that the legislation around pensions has changed massively over the last few years and having a good financial advisor on hand to monitor your investments from year to year and also provide ongoing advice around changes in legislation and taxation in relation to your pensions is very valuable.
 
oddjob said:
If I was in your position I would definitely seek advice from a financial advisor.

An advisor would check out whether you have any existing guarantees that apply in connection with your existence schemes. These could be things like guaranteed growth rates in future or guaranteed annuity rates when you come to take the benefits from your pensions. n answer advisor would also be able to check whether you may be entitled to more tax-free cash than the standard 25% because this again would be a factor on whether you would decide to transfer your schemes across to something new.

In the financial world cheaper does not necessarily mean better so I would look at the net returns of investments rather than just the annual management charge of a particular investment fund.

The other issue to consider is that the legislation around pensions has changed massively over the last few years and having a good financial advisor on hand to monitor your investments from year to year and also provide ongoing advice around changes in legislation and taxation in relation to your pensions is very valuable.
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A very good summary mate.
 
Flip said:
HI - I have a few pensions which are dormant so I spoke to a financial advisor, however I want to check he isn't taking my eyes out as I'm a bit suspicious.

I want to consolidate two pensions into one worth ~£130K, he did various research and has come up with a recommendation with charges of 0.45% from the provider - so far so good.

Now the bit that I am querying - he then said in order to do this he would need a 3% one off charge up front ~£3,800 which I pulled a face at and he said he could do it for £3K and then on-going 0.5% charges to review pension on a six monthly basis, provide advice etc. Is this normal or is he pulling a flanker?

Just thought I'd ask your opinion, and can any recommend an IFA in the North East for this sort of thing so I can compare?

Cheers
Click to expand...
Although the initial charges for the advice do seem a little high it is impossible for anyone outside the discussions around the transaction involved to comment as to whether it is fair for the work the adviser has done. It does appear though that within your post that you haven't included investment costs unless I have misunderstood as the 0.45% pa would be fairly typical for a pension product, then investment costs could vary from c. 0.2% pa to c. 1.5% pa in addition to the product charge.
 
nyron4england said:
have you thought about putting some into a more aggressive investment portfolio?
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No I'm a 6/10 on the risk rating at the moment - current funds are running at ~10% due to the stock market having a good year

ProfessionalMackem said:
Mate. You need a second opinion.

This is the last guy I used. Works on sea road out of the hunters estate agents

Brian IFA
07775504884
Click to expand...

Cheers mate - I'll give him a bell tomorrow
 
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