Charges - how they work
You only pay for the advice you accept!
At Pensionlite we have always believed that the people we do work for should be fully aware of ALL costs and if appropriate any ongoing service charges BEFORE making any decisions.
Our standard service, unless otherwise agreed, is based on a full review of a client’s existing pension plans, in line with their needs and circumstances, without any obligation to follow any recommendations we make.
Because we gather information about you and your existing arrangements without the need for Face to Face meetings, and provide our advice and recommendations in writing by post, we can be far more cost effective than a traditional adviser, without any lack of quality or service.
With the introduction of Pension Freedoms our advice process has changed in practice but not principle to accommodate the different requirements applying to Money Purchase pensions and Occupational pensions.
If you are unsure which type of pension you have please call us on 01952 279 379 or send us a message on our enquiry form or e mail firstname.lastname@example.org
If you accept our recommendations you will have been provided with a breakdown of all charges that may apply, specific to you, your needs and your existing pension arrangements in writing before any decisions are made.
In most instances any charges that may apply can be deducted from your existing pension arrangements although that does not have to be the case. You decide how you want to pay us.
Please bear in mind that as we are looking to reduce your investment risk and charges whilst improving your opportunity for growth the actual cost of advice is more often than not recovered in a matter of months.
Money Purchase Pensions
These are pensions that as the title suggests are built up based on 3 simple factors. How much you or your employer contribute, the charges applied to manage the scheme and what investment returns you get.
The benefits you can take out are based on the prevailing pension rules and market forces. As the plan owner you can decide which options are best suited to you and your circumstances.
When providing our free, independent and no obligation review and recommendation service the following apply: –
If you accept our recommendations you will have been provided with a breakdown of all charges that may apply, specific to you, your needs and the combined value of your existing pensions in writing before any decisions are made.
Remember that any advice fee can usually be deducted from the fund value, or you can choose to pay us directly.
These are often referred to as ‘Final Salary’ pensions because the pension benefits are based on the member’s final salary at retirement as well as the number of years the individual has been a member of the scheme.
If you leave service before retirement your salary figure is notionally adjusted in the years up to taking benefits.
Each of these pensions has what is referred to as a Cash Equivalent Transfer Value; as a rule of thumb if you multiply the projected pension income shown on your last pension statement by 20 you will see approximately what the Cash Equivalent Value of that fund is. This is only a rough guide but you may be very surprised at the size of fund required to provide this type of benefits.
Because of the excellent value these schemes provide it is virtually impossible to replace them in a commercial market so traditionally advice has usually been that the benefits are maintained rather than transferred.
However, there are certain circumstances where the member may be better off transferring out such as their marital status, age of beneficiaries, death benefits and the like.
These need to be considered carefully before a transfer can be contemplated and certainly recommended.
When reviewing an Occupational / Final Salary scheme, because we are obligated by our regulators to complete certain checks and balances with our advice protected by Professional Indemnity Insurance to protect you in the event of unsuitable advice we offer a different approach to our standard review and recommendation process.
In these circumstances, we will agree to do the initial scheme analysis and calculations for a set fee, usually £1000, although this may be more depending on the work involved.
If we recommend a transfer and you do follow our advice then the initial analysis charge will be deducted from our advice fee.