Pension advice

[Stu-nph26]

Ginge R said:

Ask your adviser about dripfeed drawdown. Remind your dad, having it outside the fund is potentially a bit like your money going outside in a winter blizzard, wearing just shreddies. It has to be somewhere until its used, so why not keep it suitably invested in the pension.

Ok will do what is a drip feed draw down just a holding account with instant access?

[Ginge R]

Here you go..

http://www.professionaladviser.com/ifaonline/adver...

.. hope it's of help. I think I'm right in saying all providers worth their salt offer it, to those who have simple needs.

Edit: Hope that's not behind a wall. If it is, just search 'pension dripfeed drawdown' and scroll down.

Edited by Ginge R on Sunday 25th September 20:56

[Stu-nph26]

Ginge R said:

Here you go..

http://www.professionaladviser.com/ifaonline/adver...

.. hope it's of help. I think I'm right in saying all providers worth their salt offer it, to those who have simple needs.

Edit: Hope that's not behind a wall. If it is, just search 'pension dripfeed drawdown' and scroll down.

Edited by Ginge R on Sunday 25th September 20:56

Thanks Ginge

[Stu-nph26]

OK so spoke with a nice women from the Prudential who has offered a low-risk drip down fund which estimates a return of around 4% based on historic performance. The only stumbling block is a 3% setup fee is this typical and to be expected?

[Ginge R]

Is it a simple personal pension? In the old days an adviser could typically charge that, but a provider charging it for an unadvised service is a new one on me. Is the 4% after ongoing costs and charges?

[Stu-nph26]

Ginge R said:

Is it a simple personal pension? In the old days an adviser could typically charge that, but a provider charging it for an unadvised service is a new one on me. Is the 4% after ongoing costs and charges?

Yea he's changing from a medium risk investment to low risk but remaining with Prudential. As far as I know it's just a regular personal pension he's taking 25% now and the remainder into this investment

[Ginge R]

I've just refreshed myself with the thread. Someone 'came out' and it's they who are charging 3% - my assumption - and they're also reducing risk by doing a fund switch. I'd have him make a phone appt with MAS or TPAS. If his needs are straightforward and simple, does he need to pay 3%?

http://www.pensionsadvisoryservice.org.uk/ask-us/P...

https://www.moneyadviceservice.org.uk/en/categorie...

[Stu-nph26]

Ginge R said:

I've just refreshed myself with the thread. Someone 'came out' and it's they who are charging 3% - my assumption - and they're also reducing risk by doing a fund switch. I'd have him make a phone appt with MAS or TPAS. If his needs are straightforward and simple, does he need to pay 3%?

http://www.pensionsadvisoryservice.org.uk/ask-us/P...

https://www.moneyadviceservice.org.uk/en/categorie...

Thanks mate I will give them a ring if we can avoid the 3% they are charging for basically order taking then I would like to.

[Stu-nph26]

Ginge R said:

Is it a simple personal pension? In the old days an adviser could typically charge that, but a provider charging it for an unadvised service is a new one on me. Is the 4% after ongoing costs and charges?

So I have a full breakdown of costs from Prudential

Product charge 0.45% every year
Investment charge - 0.65% every year

Advisor charge - 3% (This is for movement to the pension income account)

All of they above are mandatory, optional charge is ongoing advisor charges of 0.5% per annum

Does this look right to you Ginge I questioned the 3% and was told everyone would charge this? Or something similar but she seemed very uncomfortable when I questioned her around this.

[DoubleSix]

Can we summarise this thread as man needs financial advice but doesn't wish to pay for it?

[Stu-nph26]

DoubleSix said:

Can we summarise this thread as man needs financial advice but doesn't wish to pay for it?

More son looking out for his dad who has worked his a off for 50 years so he doesn't get ripped off. And thanks for your input he's more than willing to pay the going rate just trying to establish what that is

[DoubleSix]

What do you think it should be?

[FGB]

If the Pru told me they would charge me 3% of the fund to transfer their personal pension to their retirement draw down fund I would tell them to get the fk out of my house !

You definately need IFA - What you have had here so far has been good - but you need to put all the actual numbers in front of someone who knows what they are doing .

The suggestion of MAS etc is also good advice if, like me, you wouldn't trust an "Independent" Financial advisor as far as you could throw them .

[Stu-nph26]

DoubleSix said:

What do you think it should be?

Considering the women from the Pru has offered no financial advice my dad asked for a low risk Pot she's basically taken his order combined with the fact they get an annual product fee and investment charge I don't think there should be any "initial advisor" charge. But as I said that's just my opinion hence asking for advice to make sure he isn't getting ripped off

[FGB]

Stu-nph26 said:

DoubleSix said:

What do you think it should be?

Considering the women from the Pru has offered no financial advice my dad asked for a low risk Pot she's basically taken his order combined with the fact they get an annual product fee and investment charge I don't think there should be any "initial advisor" charge. But as I said that's just my opinion hence asking for advice to make sure he isn't getting ripped off

One thing will be for sure - whatever the Pru are offering will not be the best for your dad - it will be the best thing for the Pru !

[Stu-nph26]

FGB said:

One thing will be for sure - whatever the Pru are offering will not be the best for your dad - it will be the best thing for the Pru !

That was my worry thanks I'll speak with an IFA tomorrow she did say the 3% is standard in the industry then started to back peddle when I questioned her.

[DoubleSix]

FGB said:

Stu-nph26 said:

DoubleSix said:

What do you think it should be?

Considering the women from the Pru has offered no financial advice my dad asked for a low risk Pot she's basically taken his order combined with the fact they get an annual product fee and investment charge I don't think there should be any "initial advisor" charge. But as I said that's just my opinion hence asking for advice to make sure he isn't getting ripped off

One thing will be for sure - whatever the Pru are offering will not be the best for your dad - it will be the best thing for the Pru !

I wouldn't necessarily disagree with that!

But funny how these sorts of clients go back to a service that ostensibly offers advice only to be shocked when there is a fee. Why not go and do it yourself online if it's not worth a penny of someones time?

OP - do you appreciate the regulatory risk that advisers expose themselves to is not necessarily any different regardless of whether you think you're calling the shots or not?

Yes, stop wasting the young girls time and go and speak to an independent (and be prepared to pay them, as is only right).

Edited by DoubleSix on Thursday 27th October 22:39

[FGB]

http://www.thisismoney.co.uk/money/pensions/articl...

Interesting bit in this;

"Prudential
Do they allow one off pension withdrawals?
Yes for both new and existing eligible customers but some customers with older legacy products may need to transfer to the Prudential Flexible Retirement Plan to be able to access their funds.
There are no fees for transferring to the Flexible Retirement Plan from older Legacy products however annual management and fund charges apply and these may differ to your current legacy contract."

[Stu-nph26]

FGB said:

http://www.thisismoney.co.uk/money/pensions/articl...

Interesting bit in this;

"Prudential
Do they allow one off pension withdrawals?
Yes for both new and existing eligible customers but some customers with older legacy products may need to transfer to the Prudential Flexible Retirement Plan to be able to access their funds.
There are no fees for transferring to the Flexible Retirement Plan from older Legacy products however annual management and fund charges apply and these may differ to your current legacy contract."

Very interesting thanks for sharing I'll look into this.

[Stu-nph26]

DoubleSix said:

I wouldn't necessarily disagree with that!

But funny how these sorts of clients go back to a service that ostensibly offers advice only to be shocked when there is a fee. Why not go and do it yourself online if it's not worth a penny of someones time?

OP - do you appreciate the regulatory risk that advisers expose themselves to is not necessarily any different regardless of whether you think your calling the shots or not?

Yes, stop wasting the young girls time and go and speak to an independent (and be prepared to pay them, as is only right).

Do you work for the Pru or something. I'm not wasting anyone's time other than your own I'm very aware of the risk I'm also more than willing to pay for a service when that service is adding value, I'm very skeptic all the Pru are adding enough value to justify a 3% fee if this offends or annoys you I make no apologies.