Financial advisor fees?

[furrytoebean]

Hi everyone,

I've been speaking to an independent financial adviser about my pension and its all good except he has an annual indemnity fee of 12.5% of all investments added throughout the year through monthly contributions. Am I right in thinking this is very high?

Are you starting with monthly contributions only and no initial lump sum?

Small lump sum. Monthly payments of about £800

Private pension no employer top up

Usual fees up to 5% of a lump sum (depending on how much). If no lump sum up to 50% of the first 12 months contributions only. Say, £100 per month would be £600 initial fees for the advice which switch off after a year. Then ongoing fees thereafter usually less than 1%.

On £800pm I would not charge 50%, however, I'd calculate a different fee to suit (obviously lower). Is this 12.5% throughout the term? (I'm an IFA)

All sorted it's a one off fee. It gets turned off after the year

Ah yes that makes sense then with the larger contributions. 👍