Typical pension set-up charges

[D.M. Procida]

What is the typical charge (made to a company by an independent pensions
advisor) for setting the pension for an employee? How is it typically
calculated?

Thanks,

Daniele

 

[David Woolley]

What is the typical charge (made to a company by an independent pensions
advisor) for setting the pension for an employee? How is it typically
calculated?

Although I haven't seen this from the company side, I think the answer
is £0.00. I think they will typically make their money from commission
taken from the money paid into the pension.

 

[Robin]

What is the typical charge (made to a company by an independent

pensions advisor) for setting the pension for an employee? How is it
typically calculated?

I suspect there is no "typical" - at least not without a great deal more
about the employee's circumstances - age, income, existing pension plans
if any, property, other savings and investments, mortgage and other
liabilities, family, and so on. But as I suspect you know, it ain't
free or cheap since IFAs were (broadly speaking) barred from commission
where they act as intermediaries. Eg I know someone coming up
retirement who paid £1,500 for advice (ie without actual management).
But he was (by my standards) well-heeled and sleek.

IIRC there was a Which? report on this last year which should have more
reliable figures. I don't subscribe any longer but you may be able to
access it at a library.

 

[D.M. Procida]

I suspect there is no "typical" - at least not without a great deal more
about the employee's circumstances - age, income, existing pension plans
if any, property, other savings and investments, mortgage and other
liabilities, family, and so on. But as I suspect you know, it ain't
free or cheap since IFAs were (broadly speaking) barred from commission
where they act as intermediaries.

Further investigation confirms what you say, and also that a figure of
£1000-£1200 is "about average" for this kind of thing.

Daniele

 

[cryptogram]

Although I haven't seen this from the company side, I think the answer
is £0.00. I think they will typically make their money from commission
taken from the money paid into the pension.

Commission cannot now be paid on investment products, only on life assurance. So an advisor would have to charge a fee if he wanted remuneration.