Pension Robbery by Financial Advisors

Apart for having a Labour Government put tax on dividends and undermine the whole point of saving money in Pension Funds there is the Financial Advisor.

A better term for these people would be Financial Rogues.

I have just been quoted the following Commissions for;

"Saving for retirement" - 25 year term 50% of the first 12 month's payments plus 0.5% of all payments from month 13.

"Savings and Investments" - Personal and Stakeholder pensions;

4.77% of the amount you invest.

So there could be a year's profit gone immediately!

To cap it all At Retirement - You actually have to pay again! e.g.

Commision on Income Drawdown;

5.09% of the amount you invest plus 0.75% of your fund value each year from year 2.

What work is involved?

Income Drawdown is like taking money out of a bank. Phone your Fund Provider when you wish to take money out and record the yearly sum on your tax return. All that is required is a table of what you are allowed to take out given your age and credit. - What could be simpler!

Deliberately making things sound complicated is an attempt to justify their fees.

The worse thing is that you have no choice. You are forced to use these beggars by the Inland Revenue.

What is the best way of getting redress from these people?

Reply to
frebak
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Nope. there are many low cost alternatives, if you don't want advice (if you do you'll have to pay for it separately).

Example:

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Reply to
Andy Pandy

or

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- they will refund or reinvest most of the commission after you pay their small flat fee.

Reply to
peter

I pity the poor sods who go along to an IFA and end up paying thousands of pounds more than the advice is worth or even worse pay percentage based fees.

Searching on the above company names gives some useful info. -

Daytona

Reply to
Daytona

I just fail to see what all these rants are about. It's pathetic. Just pay the guy a fee for the work involved. Why use an IFA who only charges via commission? (He' not an IFA BTW if he doesn't offer you a fee option).

Incidentally, what's "credit" got to do with income drawdown?

Rob Graham

Reply to
Rob graham

Credit = a Positive balance in the bank, building society, or pension fund (to drawdown on). Financial Advisors can probably sell you a negative Pension Fund. Some funds probably end up that way anyway.

Reply to
frebak

Best way is to get them beaten up, mafia style. Legally, forget it - the ombudsman is like a dancing puppet for the IFA's. Irma

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Reply to
Irma Troll

"Irma Troll" wrote

Then why did they only agree with the IFA in **less than half** of their cases?

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Reply to
Tim

You won't lose any money in a pension fund if you use the cash fund provided by the pension company. But would you want to be so risk-averse?

Your choice, not that of the IFA.

Rob

Reply to
Rob graham

I've no problem with opinions which may not tally with mine, but we seem to have had a spate of ridiculous unsupported statements recently, which completely destroy the case for the poster. Get your hair back on.

Rob

Reply to
Rob graham

I have today discovered that my Financial Advisor has gone into liquidation!

You've got to laugh!

"As a fund of last resort, FSCS can only pay compensation for financial loss where a firm is unable to meet claims. For investment claims, compensation aims to put consumers back into the position they would have been in had they not invested. The compensation limit for investment claims is GBP48,000 per person."

Not so funny for the hundreds who have been swindled.

Personally I am about £100,000 worse off.

Reply to
Fred

F**k me! That is truly awful.

MM

Reply to
MM

You've got to laugh!

"As a fund of last resort, FSCS can only pay compensation for financial loss where a firm is unable to meet claims. For investment claims, compensation aims to put consumers back into the position they would have been in had they not invested. The compensation limit for investment claims is GBP48,000 per person."

Not so funny for the hundreds who have been swindled.

Personally I am about 100,000 worse off.

Yes, I agree this is bad news.

Rob Graham

Reply to
Rob graham

In message , Fred writes

Why does the liquidation of your financial adviser mean you have lost any dosh?

Reply to
John Boyle

Worse off through taking the Financial Adviser's advice to leave a company pension scheme. If you need expert advice, you go to an expert. Never in a month of Sundays would you expect an expert to be lying through his teeth. Anyway the Company itself recommended him to me so I may sue this Company. If a firm wished to reduce the numbers in its pension scheme, it may have appointed a crooked Financial Adviser? Hum.

Reply to
Fred

In my experiences IFA's are only expert in who pays the biggest bung. Irma

Inviato da X-Privat.Org - Registrazione gratuita

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Reply to
Irma Troll

In message , Fred writes

What was wrong abut his advice?

Hmm, the Company recommended him? Was he a tied agent of the company then?

Reply to
John Boyle

He was the advisor to the Company Pension scheme, the person the comapny sent to advise those leaving the firm. He was from a FA partnership not connected with the (American) Company and sat at the top table during Company functions.

Reply to
Fred

In message , Fred writes

Sorry, I misunderstood your use of the word 'company'. I erroneously thought you meant the Pension Company - my mistake.

Did you have to leave the co.scheme when you left the company?

Reply to
John Boyle

No I did not have to leave the co.scheme. I was taked into it.

Reply to
Fred

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