How much do IFAs cost?

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I need to organise critical life insurance and also income protection insurance as I currently don’t have anything. I could also do with some general pension advice. I’d like to see an IFA but bit worried about cost - anyone know what I’d be looking at roughly? I’d want to see someone who’s not tied to certain products so I’m assuming they’d charge me a fee not take commission.

Thanks

Protection is usually paid via a proc fee direct to the adviser by the insurance company. Pension will be usually via fee or percentage of assets, 3-5% or a fee. Or if starting a new pension a fee or larger percentage of first 12 months contributions. As the client, you have the option to choose and fees should be disclosed before any business undertaken. For whole of market advice go onto unbiased.co.uk

It sounds like you’re at pre-IFA advice stage on pensions. Anything that’s “general” can probably be covered on sites like Money Saving Expert. I would only be paying an IFA for tailored advice on pensions. What do you want to know?

You also don’t need an IFA for either of the protection products you mentioned. They’ll have a better view of the market than an internet search, but you should see what’s out there for yourself, first.

You can ask them upfront and they will tell you. Also ask if they are whole of market and if they say no, then you know they are tied to someone’s products.

On protection most advisers work with a panel of providers and will select the most suitable for you. They will also do a proper review of your needs and have to make suitable recommendations. This area is regulated and you can have some confidence in speaking to an adviser. The providers pay commission and advisers don’t charge for this unless it is a very complex case. All commission will be disclosed to you.
You can go to providers directly but they will most likely pay that commission to their own staff or just keep it so you are not really saving.

Thanks for all the replies. Forensic that’s what I’d thought/hoped ... I’m sure I could find something myself online but there seems to be so many exclusions and caveats with insurance, I’d feel happier with someone who knows what they’re doing.

Pension wise, I’ve currently got a very small pension, it’s hardly worth anything. I’m 49, divorced and a single parent, and although I’m on a reasonable income, money is quite tight. I want to know how to make the best of my options really - ie is it worth putting money into the scheme scheme or is it too late.

What’s the scheme scheme? think typo has led to leaving out the most important info!

It is too late... MSE forum likes to say, the best time to start a pension was 20 years ago, the second best time is today It’s unlikely to not be worthwhile.

The first thing is to check if you have an employer pension, with employer contributions - even though it may not seem much, it’s still worth having, and is increased by the tax relief.

Thanks coco, yes it’s an employer scheme. Employer pays 3% so not great.

To chuck loads more into it (currently pay £150 a month) would be difficult to manage financially, so I’m not sure it’s worthwhile really, the sums will be paltry given my age. Feel I’d be better off paying off the mortgage, then downsizing at 60 to release some cash. Difficult to gauge. Would an IFA be able to advise on these things?

"Which? Money" Has good advice and do a £1 initial trail subscription. Might be worth looking at that

Would an IFA be able to advise on these things?

Yes. You need holistic financial planning to look at your overall circumstances and future plans which will probably need ongoing advice and changing as you hear retirement.

*near retirement

Thanks Tiddy. It sounds like an IFA is the way forward then. Will get the protection stuff sorted first (lockdown permitting) then move into the pension

so I’m not sure it’s worthwhile really, the sums will be paltry given my age. Feel I’d be better off paying off the mortgage, then downsizing at 60 to release some cash. Difficult to gauge. Would an IFA be able to advise on these things?

An IFA will indeed give you their opinion on these things. However, they cannot know the future so they will be guessing. Educated guesses but guesses all the same.

The IFA doesn't have access to any information that you cannot find out for yourself.

You will only know whether their advice is good years later when you actually retire.

Most people find an IFA that they 'trust' and then go with their advice. They don't compare what else they might have done so don't ever find out whether the advice was good.

It's a minefield. Martin Lewis 's site is a good place to start, to inform yourself.

https://www.moneysavingexpert.comm*

Good luck.