Pension advice
Discussion
I'll give you advice without payment, isn't that the whole point of this subforum? Or is it for advertising services?
The 3% sounds a lot to me, what does he get for it? I'm not recommending them as I have no experience of Hargreaves Landsdown, but he could for example transfer his pension pot to an HL SIPP which has no charges for income drawdown. My pension provider allows free transfer-out, and they all allow free transfer-in, so he doesn't have to stay with the Pru if their charges are higher than others.
I'd take him to the Citizens Advice Bureau https://www.citizensadvice.org.uk/about-us/how-we-... and talk it through, or find someone you trust who can give you a bit of advice. Do you know a bank manager, finance director (at your work?) or someone who retired in the last couple of years who might steer you in the right direction?
Some people argue you shouldn't try to understand what his choices are, just leave it to the experts, but I think most of us feel more comfortable if we know what's going on. Talk to as many people as you can, help him shop around for the best deal, you'll find that it's not that complicated.
The 3% sounds a lot to me, what does he get for it? I'm not recommending them as I have no experience of Hargreaves Landsdown, but he could for example transfer his pension pot to an HL SIPP which has no charges for income drawdown. My pension provider allows free transfer-out, and they all allow free transfer-in, so he doesn't have to stay with the Pru if their charges are higher than others.
I'd take him to the Citizens Advice Bureau https://www.citizensadvice.org.uk/about-us/how-we-... and talk it through, or find someone you trust who can give you a bit of advice. Do you know a bank manager, finance director (at your work?) or someone who retired in the last couple of years who might steer you in the right direction?
Some people argue you shouldn't try to understand what his choices are, just leave it to the experts, but I think most of us feel more comfortable if we know what's going on. Talk to as many people as you can, help him shop around for the best deal, you'll find that it's not that complicated.
-Pete- said:
I'll give you advice without payment, isn't that the whole point of this subforum? Or is it for advertising services?
The 3% sounds a lot to me, what does he get for it? I'm not recommending them as I have no experience of Hargreaves Landsdown, but he could for example transfer his pension pot to an HL SIPP which has no charges for income drawdown. My pension provider allows free transfer-out, and they all allow free transfer-in, so he doesn't have to stay with the Pru if their charges are higher than others.
I'd take him to the Citizens Advice Bureau https://www.citizensadvice.org.uk/about-us/how-we-... and talk it through, or find someone you trust who can give you a bit of advice. Do you know a bank manager, finance director (at your work?) or someone who retired in the last couple of years who might steer you in the right direction?
Some people argue you shouldn't try to understand what his choices are, just leave it to the experts, but I think most of us feel more comfortable if we know what's going on. Talk to as many people as you can, help him shop around for the best deal, you'll find that it's not that complicated.
He gets nothing for it that's my concern, this is great advice thanks Pete The 3% sounds a lot to me, what does he get for it? I'm not recommending them as I have no experience of Hargreaves Landsdown, but he could for example transfer his pension pot to an HL SIPP which has no charges for income drawdown. My pension provider allows free transfer-out, and they all allow free transfer-in, so he doesn't have to stay with the Pru if their charges are higher than others.
I'd take him to the Citizens Advice Bureau https://www.citizensadvice.org.uk/about-us/how-we-... and talk it through, or find someone you trust who can give you a bit of advice. Do you know a bank manager, finance director (at your work?) or someone who retired in the last couple of years who might steer you in the right direction?
Some people argue you shouldn't try to understand what his choices are, just leave it to the experts, but I think most of us feel more comfortable if we know what's going on. Talk to as many people as you can, help him shop around for the best deal, you'll find that it's not that complicated.
Stu-nph26 said:
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).
-Pete- said:
'd start with financially experienced people who don't stand to benefit from the choices your dad makes. Maybe your dad needs an IFA, but why not start with people with no ulterior motive?
Good point I have a couple of mates who work in the banking industry I'll pick their brains over a beer. 
Stu-nph26 said:
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.
3% is all a bit 2008. They're charging 1% a year for running it, so 4% in year one. That's the bit that's worrying. They have to charge something, and the percentage versus flat fee debate rages on. Both have pros and cons, both can help and hinder in equal measure.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.
Is it a bit much? Depends. If your dad's pot is small, if it has to be moved, if his needs are modest and if they're doing next to nothing for it, yes, probably.
I mentioned using TPAS. Have a read of Henry Tapper's recent experience. Henry is very credible so it's a useful read. As an aside, most providers will charge c.0.5% pa to run it for you (advice on top, if needed) if the fund is an ok sized one (c.£30k upwards).
https://henrytapper.com/2016/10/10/my-hour-with-pe...
My mother was in exactly the same position, I tried (And failed) to get her to move the pension to a cheap sipp and then take the 25% tax free and self administer the rest by drawing down the money over a number of year. My preference was Hargreaves Lansdown but there are cheaper ones that you can use. (see here) http://www.moneysavingexpert.com/savings/cheap-sip...
In the end she paid a financial advisor about £1000 to an IFA to move a pension of approx 40k to a standard life SIPP. The advice was worth it because it reassured her plus the money she paid for the advice came directly from her pension during the pension move so she didn't have to pay. (if she didn't take the IFA's advice she would have had to pay the money though).
Your father wouldn't pay the full 40% on the pension, it would just be treated as regular income for tax purposes (though some pensions pay it at 40% and then you have to claim back). So for example if he only received 10k per year in income from other resources he could still receive another 20k (ish) at the 20% rate before he was walloped with the full 40%.
Without knowing the exact figures and your fathers circumstances then it is difficult to give an opinion which is exactly why he should pay for some financial advice. The IFA will want to know all sources of income, assets and savings before they give advice.
In the end she paid a financial advisor about £1000 to an IFA to move a pension of approx 40k to a standard life SIPP. The advice was worth it because it reassured her plus the money she paid for the advice came directly from her pension during the pension move so she didn't have to pay. (if she didn't take the IFA's advice she would have had to pay the money though).
Your father wouldn't pay the full 40% on the pension, it would just be treated as regular income for tax purposes (though some pensions pay it at 40% and then you have to claim back). So for example if he only received 10k per year in income from other resources he could still receive another 20k (ish) at the 20% rate before he was walloped with the full 40%.
Without knowing the exact figures and your fathers circumstances then it is difficult to give an opinion which is exactly why he should pay for some financial advice. The IFA will want to know all sources of income, assets and savings before they give advice.
sugerbear said:
The advice was worth it because it reassured her plus the money she paid for the advice came directly from her pension during the pension move so she didn't have to pay.
!Like most things financial the money was hoovered out en passant so she never saw it go. I'm not saying that's wrong - you knew about it - but it means it's not free.
sugerbear said:
My mother was in exactly the same position, I tried (And failed) to get her to move the pension to a cheap sipp and then take the 25% tax free and self administer the rest by drawing down the money over a number of year. My preference was Hargreaves Lansdown but there are cheaper ones that you can use. (see here) http://www.moneysavingexpert.com/savings/cheap-sip...
In the end she paid a financial advisor about £1000 to an IFA to move a pension of approx 40k to a standard life SIPP. The advice was worth it because it reassured her plus the money she paid for the advice came directly from her pension during the pension move so she didn't have to pay. (if she didn't take the IFA's advice she would have had to pay the money though).
Your father wouldn't pay the full 40% on the pension, it would just be treated as regular income for tax purposes (though some pensions pay it at 40% and then you have to claim back). So for example if he only received 10k per year in income from other resources he could still receive another 20k (ish) at the 20% rate before he was walloped with the full 40%.
Without knowing the exact figures and your fathers circumstances then it is difficult to give an opinion which is exactly why he should pay for some financial advice. The IFA will want to know all sources of income, assets and savings before they give advice.
Don't forget, your mum would have paid for the advice, even if she didn't physically write out a cheque. It would have still come from her fund. In the end she paid a financial advisor about £1000 to an IFA to move a pension of approx 40k to a standard life SIPP. The advice was worth it because it reassured her plus the money she paid for the advice came directly from her pension during the pension move so she didn't have to pay. (if she didn't take the IFA's advice she would have had to pay the money though).
Your father wouldn't pay the full 40% on the pension, it would just be treated as regular income for tax purposes (though some pensions pay it at 40% and then you have to claim back). So for example if he only received 10k per year in income from other resources he could still receive another 20k (ish) at the 20% rate before he was walloped with the full 40%.
Without knowing the exact figures and your fathers circumstances then it is difficult to give an opinion which is exactly why he should pay for some financial advice. The IFA will want to know all sources of income, assets and savings before they give advice.
sugerbear said:
My mother was in exactly the same position, I tried (And failed) to get her to move the pension to a cheap sipp and then take the 25% tax free and self administer the rest by drawing down the money over a number of year. My preference was Hargreaves Lansdown but there are cheaper ones that you can use. (see here) http://www.moneysavingexpert.com/savings/cheap-sip...
In the end she paid a financial advisor about £1000 to an IFA to move a pension of approx 40k to a standard life SIPP. The advice was worth it because it reassured her plus the money she paid for the advice came directly from her pension during the pension move so she didn't have to pay. (if she didn't take the IFA's advice she would have had to pay the money though).
Your father wouldn't pay the full 40% on the pension, it would just be treated as regular income for tax purposes (though some pensions pay it at 40% and then you have to claim back). So for example if he only received 10k per year in income from other resources he could still receive another 20k (ish) at the 20% rate before he was walloped with the full 40%.
Without knowing the exact figures and your fathers circumstances then it is difficult to give an opinion which is exactly why he should pay for some financial advice. The IFA will want to know all sources of income, assets and savings before they give advice.
Thank you for posting this - it's good to read of a positive advice experience.In the end she paid a financial advisor about £1000 to an IFA to move a pension of approx 40k to a standard life SIPP. The advice was worth it because it reassured her plus the money she paid for the advice came directly from her pension during the pension move so she didn't have to pay. (if she didn't take the IFA's advice she would have had to pay the money though).
Your father wouldn't pay the full 40% on the pension, it would just be treated as regular income for tax purposes (though some pensions pay it at 40% and then you have to claim back). So for example if he only received 10k per year in income from other resources he could still receive another 20k (ish) at the 20% rate before he was walloped with the full 40%.
Without knowing the exact figures and your fathers circumstances then it is difficult to give an opinion which is exactly why he should pay for some financial advice. The IFA will want to know all sources of income, assets and savings before they give advice.
Your assertion that your mother "...didn't have to pay" would make a regulator die a little death though...!
Ginge R said:
sugerbear said:
...
In the end she paid a financial adviser about £1000 to move a pension of approx 40k to a standard life SIPP. The advice was worth it because it reassured her plus the money she paid for the advice came directly from her pension during the pension move so she didn't have to pay. (if she didn't take the IFA's advice she would have had to pay the money though)
...
Don't forget, your mum would have paid for the advice, even if she didn't physically write out a cheque. It would have still come from her fund. In the end she paid a financial adviser about £1000 to move a pension of approx 40k to a standard life SIPP. The advice was worth it because it reassured her plus the money she paid for the advice came directly from her pension during the pension move so she didn't have to pay. (if she didn't take the IFA's advice she would have had to pay the money though)
...
WindyCommon said:
Thank you for posting this - it's good to read of a positive advice experience.
Your assertion that your mother "...didn't have to pay" would make a regulator die a little death though...!
It was a very good experience, I used www.unbiased.co.uk to find an adviser, there are free guides available from most of the SIPP providers as well. Unbiased also give an indication of the fees as well https://www.unbiased.co.uk/cost-of-financial-advic...Your assertion that your mother "...didn't have to pay" would make a regulator die a little death though...!
I actually felt better to have my mum talk through the plan with an IFA because I know exactly what I would have done having worked in financial services for quite some years, but when it is other peoples money (especially when they are older) and there are siblings involved (despite me and my brother being in complete agreement) there is always the nagging doubt that your advice will turn out to be full of holes and that parents and siblings will then turn on you when a) the market turns b) legislation changes c) you find the investment isn't protected d) you missed something really important e) something else
My advice to the OP is to take your time, do some research, have an idea of what you want to do and then talk it through with the IFA and see what they come up with. It certainly wasn't as easy as I imagined and it took about 12 weeks to complete the transfer (mainly because the pension was coming from a company that didn't seem very bothered about moving the money quickly).
Thanks to everyone for there advice. I spoke with the money advice service who were great. I was told by the women from the Pru I would have to pay advisor charges which turns out is rubbish. The guy said I can go direct and arrange everything on an execution only basis. I spoke to the Pru direct who have a low risk fund and the charge would be be 1.45 per annum which saves me the initial 3% and 0.15 on the annual charge. Thanks for your advice everyone.
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