Tideway’s initial defined benefit pension transfer advice fees are based on the pension transfer value and are:
Our fees are totally transparent and deducted from your pension account on completion of the transfer and post the payment of any tax-free cash sum if this is to be paid at outset. VAT is not applied.
We select a low cost, secure, third party pension provider to receive your pension transfer funds and administer your drawdown account post transfer.
Typical ongoing fees based on a £500,000 drawdown account invested in Tideway’s Horizon Stable Return 2 Portfolio are:
|Ongoing fee||Annual amount of invested portfolio||What it's for|
|Tideway's Wealth Management||0.75%||Ongoing advice and portfolio management|
|Pension Platform||0.1% - 0.2%||Administration and safe custody of your pension account and investments|
|Fund fees||0.6% - 1.1%||Fund manager and fund administration costs of the collective funds you will invest in.|
|Total fees||1.5% - 1.9%||Note most of the fees are VAT exempt; the exact fee will depend on the mix of funds used, the value of your portfolio and the platform used|
The continuing use of Tideway for advice and investment management and your pension platform is at your discretion and you will be able to change advisers or platforms after your pension transfer without further legally obligated advice and without significant cost from either Tideway or your pension provider.
Not all companies are as transparent about their fees.
One of the UK’s largest wealth management company in particular markets defined benefit pension transfer advice without any initial charge to your fund if you transfer with them. However, their pension platform charge at 1% p.a. is five times the UK norm for a secure pension platform and this margin allows them to fund 4.5% up front payments to individual advisers, protected by a 6% exit fee if you try to move your funds within one year of the pension transfer. Such exit fees apply for six years on a sliding scale to ensure the company is never out of pocket. Total ongoing fees for this company will typically be over 2% p.a.
Not all companies are as cheap as they appear.
Another of the UK’s largest wealth managers appears on the face of it to be a low cost execute yourself platform, however invest via one of their managed fund of fund portfolios which now hold billions of pounds and total fees for the platform at 0.35% for a £500,000 account and funds an 1.46% OCF for their multi manager balanced portfolio. 1.81% in total and without any advice. Advice from this company is paid for separately on top of the fees above.
In making any comparisons with other companies we strongly advise you to ensure that you get all the fees and costs disclosed and that you are comparing apples with apples in terms of the services provided.