Our ongoing service
We charge 1% per year for our ongoing management of your pension.
What do you get in return for this? Your pension needs regular maintenance to ensure that it stays on track and in line with our recommendation for you. This is called rebalancing and involves buying and selling different funds within a pension that have performed in different ways in order to maintain the mix that we believe is best for you.
We review your pension annually which includes checking your circumstances and attitudes to risk haven’t changed. If they have then we will make the necessary adjustments. If you are over 55 and want to take or adjust an income from your pension then we will also take care of this within your fee. And of course we are here for you on the end of a phone whenever you need to ask us something.
Perhaps most importantly, you benefit from both the preferential rates we negotiate on your behalf with platform providers and what we believe are some of the best funds available in the UK.
As an example of ongoing fees in money terms, if you had £50,000 in your pension then 1% of this would be £500. And if your pension had grown to, say, £63,000 a few years later, then in that year 1% would be £630.
Our initial service
The costs for our initial service very much depend on what it is that you want to do, what our recommendation is, what type of pension you currently have and how large your pension pot is. You get our full advice and recommendation without having to pay a penny. The cost for then actioning our recommendation can vary from 1% for certain discounted annuities to 7% for a complex low value ‘pension freedoms from a defined benefit scheme’ case. Some cases are a fixed £500 fee and something like a defined contribution switch to a more suitable scheme is normally 3%. Our flexi-access drawdown fees are tiered, reducing for higher pension pot sizes, and we cap our fees for these and for switches so that only the first £350,000 has any fee applied.
We won’t be able to determine what charge is applicable until we make our recommendation, though, as we don’t know enough about your pensions or what we would be recommending yet. What we do know is that it won’t cost you a penny to find out. We will clearly explain the specific charge for what we are recommending, and in real money terms, in the full report that we send you so you can make an informed choice.
As an example in money terms, let’s look at someone who came to us with two personal pensions totaling £50,000 in value, that we recommended being switched to a more suitable and lower charging scheme with a completely different set of investments and accessible through a modern platform:
- Our initial view of your pensions – No Charge
- Our full advice and recommendation – No Charge
- Following your instruction, making our recommendation a reality – £50,000 x 3% = £1,500 fee