Pension yearly fees

amberspy · 20 Sep 19, 02:17 PM

Husband has a few pensions
One is current works pension which he pays into monthly
Two are very small old works pensions
Was pulling out paperwork is it normal for old pension charge a yearly charge of around �300 nothing gets paid into this one
This pension is peanuts so also wondering if he cash in at 55 🤔

**ChoppyGirl** · 20 Sep 19, 02:19 PM

For public sector pensions there are no fees at all as they are taken care of in the employee and employer contributions. The same for deferred (frozen) pensions - no fees. May be different for other occupational pensions though.

tspill · 20 Sep 19, 02:33 PM

Originally Posted by amberspy

Husband has a few pensions
One is current works pension which he pays into monthly
Two are very small old works pensions
Was pulling out paperwork is it normal for old pension charge a yearly charge of around �300 nothing gets paid into this one
This pension is peanuts so also wondering if he cash in at 55 🤔

I assume these are defined contribution pensions where there is a pot of money invested?
If so, there will be fees. Both for the platform holding them (a but like the bank that holds our cash and savings). The underlying investments will also attract fees (these may be hidden in the prices). If there was any advisor involved initially, they will also receive a fee.
Can the pension be moved into a low cost SIPP? That might be an option. Whether they want to take the pension may come down to the tax position.

disney332 · 20 Sep 19, 02:54 PM

Pensions have fees. Older contracts have eye watering fees and if you are in one of these a switch to a lower cost modern arrangement could save you money but professional advice should be sought.

Yes at 55 he can take it all out. Whether that is a prudent strategy is another thing.

Disney332

amberspy · 20 Sep 19, 04:03 PM

Great I think we need see a pension adviser
Do these cost a lot ?
I know nothing about these sort of things unfortunately

Rebelrebel · 20 Sep 19, 04:17 PM

Originally Posted by amberspy

Great I think we need see a pension adviser
Do these cost a lot ?
I know nothing about these sort of things unfortunately

Go to unbiased.com as these finical advisors are verified, they often have a first consultation free deal so at least you can get some advice and an idea of what you want to do.

amberspy · 20 Sep 19, 05:14 PM

Originally Posted by Rebelrebel

Go to unbiased.com as these finical advisors are verified, they often have a first consultation free deal so at least you can get some advice and an idea of what you want to do.

Great just done this thanks

Pumba75 · 20 Sep 19, 06:32 PM

Originally Posted by amberspy

Great just done this thanks

Before doing that, does your husband's current employer have a pension adviser/employee benefits consultant? If so, may be worth him having a chat with them. Many such advisers will often provide onsite guidance sessions where they may be able to answer some of the questions, in just the same way an IFA will in an initial free consultation.

The problem with going straight to the ifa is that many of them won't advise on "small" funds as it's not commercially viable for them and, even if they will, the fees are high (due to the fact that the Financial Conduct Authority considers transfer advice to be a higher risk area of advice).

Most EB consultants/workplace pension advisers will be part of IFA practices.

amberspy · 20 Sep 19, 07:18 PM

Originally Posted by Pumba75

Before doing that, does your husband's current employer have a pension adviser/employee benefits consultant? If so, may be worth him having a chat with them. Many such advisers will often provide onsite guidance sessions where they may be able to answer some of the questions, in just the same way an IFA will in an initial free consultation.

The problem with going straight to the ifa is that many of them won't advise on "small" funds as it's not commercially viable for them and, even if they will, the fees are high (due to the fact that the Financial Conduct Authority considers transfer advice to be a higher risk area of advice).

Most EB consultants/workplace pension advisers will be part of IFA practices.

That�s great advice 👍
We not sure if cash in the two small ones next year when he turns 55 and take lump sum and small monthly pension
The small monthly pension is peanuts we would be better saving that ourselves rather than waiting another ten years
But this is not my area so trying figure out stuff without paying a big advisor fee

20 Sep 19, 02:54 PM	#4
	20 Sep 19, 02:54 PM disney332 Imagineer
disney332 Imagineer Join Date: Oct 09	Pensions have fees. Older contracts have eye watering fees and if you are in one of these a switch to a lower cost modern arrangement could save you money but professional advice should be sought. Yes at 55 he can take it all out. Whether that is a prudent strategy is another thing. Disney332 __________________