IFA initial fees for pension transfer - 2.6% acceptable?

[Fore Left]

IFA wants to charge me 2.6% of my total pension pots to transfer them from the existing providers to the Nucleus platform. Is this an acceptable rate?

[98elise]

I suppose it depends on how big the pot is, and how much work is involved

I moved all my various pensions onto one platform and it was very simple. Cost = £0.

[SS2.]

I did mine myself, from a couple of providers to a single HL SIPP.

As above, cost to move was nothing.

[bogie]

Exactly ....a few smaller pots and a couple of grand of fees may be understandable. A few larger pots and tens of thousands in fees may not.....

[Fore Left]

Thanks for the replies.

Pot is approx £800k. They're selecting the funds it's going into and are going to be managing it on an ongoing basis (for which they're charging 1% + platform fees).

[Mr Pointy]

£20,800 for something I & others have done for £0. Good money.

At least have a read of the IM stickies at the top of this forum.

[dingg]

Is the current pot a final salary fund or money purchase set up? Or a combination of the two?

[Fore Left]

Combination. 75% money purchase. I have paid £1,800 separately for advice to transfer out of the DB scheme.

[IJWS15]

Like others have moved several DC pensions into a single pot over the last 24 months (it took a while and during the process three of the schemes changed their administrators).

Total cost zero (assuming I don't move it all out in the next three years)

They should be planning to make their money from managing yours, not taking a cut off the top.

[Derek Chevalier]

Fore Left said:

Thanks for the replies.

Pot is approx £800k. They're selecting the funds it's going into and are going to be managing it on an ongoing basis (for which they're charging 1% + platform fees).

It's, erm, toppy. You should be able to target an initial fee of <£5k

Regarding ongoing fees, again, 1% seems high. At that level, you should be able to get ongoing advice at 0.5%, and given platform fees at 0.1% and funds at 0.2%, be comfortably under 1% pa all in.

[Derek Chevalier]

Fore Left said:

I have paid £1,800 separately for advice to transfer out of the DB scheme.

Conversely, that seems competitive in the current landscape.

[CharlesElliott]

I paid no IC as I was moving from another IFA and my new / current IFA felt that I would have been paying twice (not him obvoiusly)! And he sensibly sees the bigger picture.

I'm on Nucleus and am paying ~0.75% ongoing fee + Nucleus platform charges. Nucleus is crap by the way vs, for example, FundsNetwork for 'user functionality' but it's not a big issue. It holds the funds and does what it needs to do.

I've recommended quite a few people to my IFA and he has done well out of the bigger picture :-).

[dingg]

Fore Left said:

Combination. 75% money purchase. I have paid £1,800 separately for advice to transfer out of the DB scheme.

In that case I would be running away from them, as said earlier in the thread, have a look at intelligent money and see it they and their products suit you, you'd be 20k up straight away.

No affiliation just a satisfied customer

[CarlosFandango11]

Fore Left said:

Combination. 75% money purchase. I have paid £1,800 separately for advice to transfer out of the DB scheme.

In case you're not aware, you're not far off the Lifetime Allowance and un-transferred DB schemes contribute much less compared to when they're transferred.

[Fore Left]

Thanks for all the replies.

I've just had a call with the IFA to talk me through the initial charge. He suggested there was a huge amount of work to do over the coming months to transfer everything over and it ensured I would not be hit with surprise advice or switching/withdrawal fees in future. I remain unconvinced (this is a firm btw, rather than an individual). Seems akin to a golf club joining fee and I wouldn't pay one of those either

I've told him to put everything on hold while I think about it. I'll look at the forum threads and recommendations here. I will probably go through with the DB transfer as I understand there are increasingly few firms undertaking these.

IJWS15 said:

Like others have moved several DC pensions into a single pot over the last 24 months (it took a while and during the process three of the schemes changed their administrators).

Total cost zero (assuming I don't move it all out in the next three years)

They should be planning to make their money from managing yours, not taking a cut off the top.

Thanks. Where did you move yours too?

Derek Chevalier said:

It's, erm, toppy. You should be able to target an initial fee of <£5k

Regarding ongoing fees, again, 1% seems high. At that level, you should be able to get ongoing advice at 0.5%, and given platform fees at 0.1% and funds at 0.2%, be comfortably under 1% pa all in.

Thanks. The IFA is unwilling to move on the fees.

CharlesElliott said:

I paid no IC as I was moving from another IFA and my new / current IFA felt that I would have been paying twice (not him obvoiusly)! And he sensibly sees the bigger picture.

I'm on Nucleus and am paying ~0.75% ongoing fee + Nucleus platform charges. Nucleus is crap by the way vs, for example, FundsNetwork for 'user functionality' but it's not a big issue. It holds the funds and does what it needs to do.

I've recommended quite a few people to my IFA and he has done well out of the bigger picture :-).

Thanks. Can you tell me who your IFA is please (happy if you want to DM). I think I've lost faith in the one I'm working with (who was recommended through work pre-retirement seminars.

dingg said:

In that case I would be running away from them, as said earlier in the thread, have a look at intelligent money and see it they and their products suit you, you'd be 20k up straight away.

No affiliation just a satisfied customer

Thanks. I will.

[CharlesElliott]

I have DMd you.

[chip*]

As stated earlier, for portfolio of your size, your looking at ongoing cost @ sub 1%.
(I know 'cos I pay ~0.8% all-in for my excellent IFA/Financial Planner)

[timberman]

98elise said:

I suppose it depends on how big the pot is, and how much work is involved

I moved all my various pensions onto one platform and it was very simple. Cost = £0.

SS2. said:

I did mine myself, from a couple of providers to a single HL SIPP.

As above, cost to move was nothing.

dingg said:

Is the current pot a final salary fund or money purchase set up? Or a combination of the two?

I transferred my final salary pension into a DC fund and then moved it again at a later date into a Vanguard SIPP,

all for £0 cost to me.