Should I go to an adviser or to Pension Bee?
29 July 2021
Question by Jayne
I’m 55 self employed and have two small work pensions. My wife has a larger pension pot of £180k but has MS and is 58 so doesn’t want to work much longer. Should I go for an adviser who said will charge me 1% for the transfers and £200 to set up a new SIPP total cost around £580. Or would it be more beneficial to go with Pension Bee?
Answered by Boring Money
I completely understand that given your wife's MS she doesn't plan to work much longer. You've got to enjoy yourself as much as you can while you are still fit and able to do so.
I don't have any experience with Pension Bee, but from my understanding they can't offer any advice. Therefore, by comparing Pension Bee versus an Adviser, you are comparing two entirely different propositions - or at least you should be.
Pension Bee only offers you investment management - it is simply a home for your pension.
A decent adviser/financial planner should offer so much more than simple investment management. They should help you decide what your future together looks like, plan your income strategy and what are the implications of your wife's MS - and what might happen in the future. The investment management for your pensions should only be a small part of the the service you receive.
A fair comparison would be to look at the adviser's investment charges vs the Pension Bee charge, as the adviser fee is for something completely over and above what PensionBee can offer you - provided you've selected the right adviser.
An initial adviser fee of 1% plus £200 to set up doesn't sound enormous compared to what some might charge.
At the end of the day, both solutions will be right for different people. If you are confident looking after your own future and simply need a home for your money, then PensionBee should suit you. If, however, you want impartial advice, and someone to steer you and offer advice on various different matters for your future together, then I don't think the adviser fee sounds too bad.
If you decide you might need an adviser, make sure to confirm what the adviser's ongoing fees are, and if they have any exit penalties or minimum service fees.
I hope this has been helpful, but please do let me know if you have any further questions.