What about the advice is simple?
basic bread and butter question for an IFA.
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What about the advice is simple?
The simple answer should be the fee they’ll pay should more than pay for itself over time.genuine question here , how can a FA justify a 4% charge for relatively simple advice ?
basic bread and butter question for an IFA.
Im sure the rules have changed and you can now go for a "draw down" option (think thats its name).I'm 60 years old and I got made redundant 3 years ago and have only had on and off part time work ever since as no one wants to employ owld folk full time. Anyway I've got a couple of small pensions that ended, one when I got made redundant and another about 10 years before that. I got a 'projection' letter off one of them a couple of days ago off one of them, normally I just bin them but I decided to look into this one as I was bored.
The value of it now is £31,195 the 'projected value when I'm 65 will be £31,500, so a capital of just over £30,000 will make just £300 interest over 5 years!!!!!! unbelievable. Also, when I retire they plan to give me £1320 a year of my own money, this equates to me living to just over 88 years old before I even get my money back ( a lifetime working in the yards and heavy industry, I don't think so!) and don't forget they are still making money on the capital whilst they are paying me back over the years. Imagine going to a Bank and asking for a loan of £30,000 and saying you will start paying it back in 5 years time and you want it interest free over 30 years and if I die 'tuff'' your'e getting nowt back. It's an absolute rip off and I would urge any younguns out there not to get one. Wish I could just withdraw the lot, but apparently pensions don't work like that. Bastards.
genuine question here , how can a FA justify a 4% charge for relatively simple advice ?
I'm 60 years old and I got made redundant 3 years ago and have only had on and off part time work ever since as no one wants to employ owld folk full time. Anyway I've got a couple of small pensions that ended, one when I got made redundant and another about 10 years before that. I got a 'projection' letter off one of them a couple of days ago off one of them, normally I just bin them but I decided to look into this one as I was bored.
The value of it now is £31,195 the 'projected value when I'm 65 will be £31,500, so a capital of just over £30,000 will make just £300 interest over 5 years!!!!!! unbelievable. Also, when I retire they plan to give me £1320 a year of my own money, this equates to me living to just over 88 years old before I even get my money back ( a lifetime working in the yards and heavy industry, I don't think so!) and don't forget they are still making money on the capital whilst they are paying me back over the years. Imagine going to a Bank and asking for a loan of £30,000 and saying you will start paying it back in 5 years time and you want it interest free over 30 years and if I die 'tuff'' your'e getting nowt back. It's an absolute rip off and I would urge any younguns out there not to get one. Wish I could just withdraw the lot, but apparently pensions don't work like that. Bastards.
Final Salary are expensive schemes to run which is the reason they are rare in the workplace now. Mine closed a few years before I retired and went onto something inferior which then had to be taken as an annuity through salary sacrifice. In hindsight when I was in the final salary scheme I wished I had hammered the AVCs. That would have been the icing on the cake.I consider myself very lucky to be in a final salary scheme for the second time in my career. Hoping to be very comfortable in my dotage.
Considering this. I used to hammer the AVCs when I was in a Money Purchase schemeFinal Salary are expensive schemes to run which is the reason they are rare in the workplace now. Mine closed a few years before I retired and went onto something inferior which then had to be taken as an annuity through salary sacrifice. In hindsight when I was in the final salary scheme I wished I had hammered the AVCs. That would have been the icing on the cake.
Far more lethal in a final salary where your pension pot is a better percentage return. The 25% tax free lump sum is there in both cases and a nice gross to net return when NHS contributions cease.Considering this. I used to hammer the AVCs when I was in a Money Purchase scheme
You’ve convinced meFar more lethal in a final salary where your pension pot is a better percentage return. The 25% tax free lump sum is there in both cases and a nice gross to net return when NHS contributions cease.
No mate I don’t tend to believe 4% is a fair fee. I’ve never charged that in my life (Max 3% for me) but drawdown is not simple at all. Definitely not.
Key to get in early. If you get used to paying say 10% of your wage into a pension when you’re just starting out & not warning a lot, it’s easy to continue into later life when your wage rises.luckily i paid into pension from teenager as the union reps more or less made me , eventhough work booted me out of it last year I have an "ok" provision .
I keep drumming it into my 2 the importance of contributing once you start work and not leaving it until you are in 30s , but its like talking to the wall
I can imagine a lot of self employed just dont bother - retirement always seems a million miles away - until you hit your mid 40s then you think,,bollocks
I'm 60 years old and I got made redundant 3 years ago and have only had on and off part time work ever since as no one wants to employ owld folk full time. Anyway I've got a couple of small pensions that ended, one when I got made redundant and another about 10 years before that. I got a 'projection' letter off one of them a couple of days ago off one of them, normally I just bin them but I decided to look into this one as I was bored.
The value of it now is £31,195 the 'projected value when I'm 65 will be £31,500, so a capital of just over £30,000 will make just £300 interest over 5 years!!!!!! unbelievable. Also, when I retire they plan to give me £1320 a year of my own money, this equates to me living to just over 88 years old before I even get my money back ( a lifetime working in the yards and heavy industry, I don't think so!) and don't forget they are still making money on the capital whilst they are paying me back over the years. Imagine going to a Bank and asking for a loan of £30,000 and saying you will start paying it back in 5 years time and you want it interest free over 30 years and if I die 'tuff'' your'e getting nowt back. It's an absolute rip off and I would urge any younguns out there not to get one. Wish I could just withdraw the lot, but apparently pensions don't work like that. Bastards.
luckily i paid into pension from teenager as the union reps more or less made me , eventhough work booted me out of it last year I have an "ok" provision .
I keep drumming it into my 2 the importance of contributing once you start work and not leaving it until you are in 30s , but its like talking to the wall
I can imagine a lot of self employed just dont bother - retirement always seems a million miles away - until you hit your mid 40s then you think,,bollocks
to be fair when in your early 20s tend to just be interested in what money have for going out/ hols/ clothes etchaving similar conversations with some of my younger team members at the moment who can’t see that employer contributions of circa 20% are a benefit and that it’s not just about basic pay but all they can see is the number they get as pay. They’d possibly get paid more in the private sector but nowhere near the benefits