Company Pension

[nikos101]

Hi all

I've been contracting around six months now and wish to set up a pension. I've consulted an IFA and they have quoted me £1500 to set one up, which I think is quite high? Can anyone recommend methods for getting a pension set up for contractors?

Many thanks

Nik.

[Jessica@WhiteFieldTax]

The IFA fee is no more than they would have - probably - earned from commissions under the pre RDR rules, its just more transparent now.

Options:

~ shop around for quotes from other IFAs (make sure they are "hole of market" and not "tied").
~ find your own choice of pension company and set it up direct with them.
~ combination of above via an execution only platform.

[Fred Bloggs]

Set up your own pension (SIPP) for nothing with the likes of Hargreaves Lansdown, Interactive Investor, Best Invest etc... It is an extremely easy and straight foward thing to do.

[northernladuk]

When I transferred my pension years ago I was surprised to see two charges on the account, one for the account and one was commission for the IFA. He did mention a percentage but I didn't read it very well or didn't work out what it was in monetary terms so was a bit disappointed at the time. I think nowadays they would have to tell me how much it was in total so I wouldn't have had the shock of spotting it on the statements which would have been much better. Could be the case here?

[Craig at Nixon Williams]

I think nowadays they would have to tell me how much it was in total so I wouldn't have had the shock of spotting it on the statements which would have been much better. Could be the case here?

That’s correct – the RDR has made it necessary for IFA’s to be transparent about the fees that they are charging.

[IR35 Avoider]

You don't have to pay anything to anyone to set up a pension. For example, you could just go to Youinvest.co.uk and sign up for a SIPP.

[TheFaQQer]

Hi all

I've been contracting around six months now and wish to set up a pension. I've consulted an IFA and they have quoted me £1500 to set one up, which I think is quite high? Can anyone recommend methods for getting a pension set up for contractors?

Many thanks

Nik.

SJP didn't charge me anything to set up a pension plan. Contributions are paid monthly as employer contributions directly from the business bank account with no problems.

[Jessica@WhiteFieldTax]

SJP didn't charge me anything to set up a pension plan. Contributions are paid monthly as employer contributions directly from the business bank account with no problems.

They are charging you, just from the monthly payments you make. As they are not whole market they avoid disclosure aspects of the RDR rules.