When was the last time you reviewed your pension with your financial adviser? Not doing so could be costing you thousands of pounds, and unnecessarily so.
Most responsible financial advisers and planners will reach out annually and invite a client review. Clients may think that if their affairs are in order, it’s not entirely necessary. A recent example shows why it is important.
We met a new client who had not seen their adviser, let alone reviewed their pension with them for four years. In that time the adviser has been paid £4,000 (0.5% p.a. on a fund worth c£200,000).
Our review found that the pension product charges were very much on the high side (1% for the pension provider and 0.5% for the funds), so in excess of £3,000 p.a.
Following a thorough pension review by Fryer Glass, we made the following recommendations:
- Reduce the financial adviser charges from £1,000 p.a. to £750 p.a. by switching to us and receive annual financial reviews to check that targets are being met and that retirement plans remain up to date.
- Reduce the pension product charges from c£3,000 p.a. to nearer £1,000 p.a. without affecting financial performance.
- Amended pension contributions that will see them earn thousands in extended tax allowances.
Comfortably we have delivered an annual saving of over £2,250. Money that can either be re-invested or used as a treat, like a holiday.
If you’d like a second opinion on the charges made on your pension products, call Mark Fryer at Fryer Glass on 01276 301103 or email [email protected]