Independent Financial Life Planners Bishop's Stortford: What are you pension pot fees?

Monday, 3 October 2016

What are you pension pot fees?

Enable’s IFA's are always transparent about any fees that are charged for pensions they set up for clients. There has been much talk of excessive fees charged on pensions and millions of workers could have to delay the age when they retire by several years because they are paying steep fees on their pension fund, new research suggests. Cutting back fees by just 1.5 percentage points can mean the difference between being able to retire at 63 or 80, according to the new data.

A 55-year old worker has an average pension pot of £42,621 and is paying an average fee of 1.85 per cent, according to customer data analysed by advice firm Profile Financial. Many however do not realise they are paying high charges. Profile Financials’ analysis of fees paid by its customers found those in new-style pension funds were paying 0.34 per cent, while 35-year-old and 45-year-old savers were paying 1.47 per cent on average and 55-year-olds were paying 1.85 per cent on average. Older workers tend to pay higher pension fees than younger staff, because the Government put a 0.75% cap on default fund charges under its auto-enrolment initiative.

Those who already have low fees will not be able to make great saving, and others may feel funds with higher fees still offer good value. But the figures highlight how big an impact fees have on your pension pot over the years, and why it is crucial to find out what you are paying as well as their investment performance.

Source: http://www.thisismoney.co.uk/money/pensions/article-3802276/Rip-pension-charges-slogging-work-longer.html

Issued by: Enable Independent Financial Life Planners •  25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.