Over the years I have done what I can to avoid being hit by charges when making pension contributions to personal pensions. For example, I have avoided long-term regular monthly commitments with consequent higher charges and searched for companies offering low annual management charges and even then have only paid in lump sums thereby saving commission outlay.
So far so good.
Now I want to think about cashing in the various pension pots and getting an annuity. The whole annuity type issue is worthy of discussion elsewhere and at length rivaling War & Peace. Best not talked about now. The point I want to make is the further rip-off we suffer at this stage. Please read on.......
My IFA wanted £750 + VAT to contact my pension funds and get quotes for the values of current lump sums and details of any bonuses and conditions. I phoned my 6 pension funds myself in one morning and after two weeks have detailed quotes from them all easy-peasy. It's the work of an admin clerk. I have then made preliminary enquiries from companies (on the open market) about likely annual incomes and have some initial figures. That was another 2 hours on the web.
The IFA now wants 1.5% of the funds value to arrange an annuity. I could do this in a couple of mornings at no cost! The IFA still refuses to refund anything.
The rip-off: I have asked pensions / insurance companies if they will deal with me direct and they say they'd be happy to do so,... BUT....they keep the 1.5% commission to themselves and pay no-one.
Do I get any of it, I asked. No chance.
I need an IFA who's feet are on the ground and who wants to make a deal with me.
The pensions industry is one big con and rip-off from start to finish.
Rant over. Advice welcome.
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