Should I switch pension providers if I'm not happy with performance?

I'm 64, retired, and I have a dilemma.

I invested £250,000 in a SIPP through an IFA and it was with Old Mutual in 2015, now Quilter. From 2016 to 2020 I added another £88,000, inc. tax claimed back. So a total of £338,000. In June 2021, I took out £25,000 - it was then worth £458,000. Move forward to summer 2025, it is worth only £10,000 more = £468,000.

I know there's Ukraine/Russia, oil issues and now Trump, but even if it kept up with inflation, it would be worth £600,000 (I know inflation has been off the charts). I've paid approx. £30,000 in Quilter and IFA fees in 4 years, so I was thinking to put it in a PensionBee - 4 Plus Plan.

I don't have the confidence to make my own choices when it comes to choosing where to invest, so I'd prefer to put it somewhere with low fees and decisions already made.

Michael hi.

My first question is what is your IFA doing? I can't really comment on the specifics as I don’t know your fuller circumstances, but this should be a conversation you have had with them on a pretty regular basis. And as you say, there should be a well-understood reason for the growth which you find disappointing.

My main point here is that you should have more knowledge and comfort with the situation than you do – this is an important part of your IFA’s job and it doesn’t sound like you have a very engaged or communicative, trusted relationship with them.

As for performance, you have very roughly seen £338,000 go up to £468,000, and you have taken out £25,000. Over a timeframe of 5-ish years – again, very rough. So that’s a 38% return over 5 years plus the £25,000. That’s not bad. I think you have a price point in your head from June 2021, which you remember because it’s when you took money out. But if you judge things from 2020, it’s a lot better.

The performance will depend a lot on how much of your money is in shares. And how much in bonds. This depends on how much volatility you want, which your adviser will have assessed with an attitude to risk questionnaire. But also your timeframes. I suspect you may not have had as much in shares as you think, as the performance would probably have been more if you were more invested in shares, as the stock market has had such a strong run.

As a very rough rule of thumb about fees, people with advisers usually pay about 2 – 2.25% all-in every year. Which includes advice, pensions, ISAs, investments – the whole lot. So those fees you cite are in line with the market. But it’s a hell of a lot of money to have paid, to have the questions you have.

The PensionBee 4 Plus plan is designed to make the equivalent of the current interest rate every year, plus 4% on top. It’s designed for the plus-50 brigade who are approaching and entering retirement, who want a smoother ride than too much in shares. But this will mean you never make earth-shattering amounts here, in exchange for a quieter life. But remember PensionBee only manage the money – they do not give you any advice or help.

My main comment is that a good financial adviser is about so much more than just picking a collection of investments for you. They are someone to guide you through retirement, to help minimise tax, to help navigate the complexities of pensions, to contact you after a Budget to report back on what it means for you, to help consider Inheritance Tax, to advise on cashflow and making your money last – and the rest.

I would have a conversation with your adviser. Tell them what you’ve told me, and that you think the returns have been sub-par and that you are thinking of leaving. And see what they say? It’s not an unreasonable conversation to have.

You say you don’t have much confidence and half a million quid is a lot to make a mistake with. If you think it’s just your current adviser, you could contact Quilter HQ and raise your concerns. You could look for another adviser elsewhere. Or you could of course go it alone with PensionBee but accept that you will lose access to advice about anything tax or financial planning related. And if you stuff up with tax, or make a clanger, it could cost you more than £30,000!

Talk to your adviser. See what you think about their answer. If you’re not happy, maybe talk to another adviser and ask them to tell you what they would do for the extra money compared to PensionBee’s charges. And if you’re still not happy, you can of course move. But maybe consider paying a fixed hourly fee for some advice first (more and more IFAs now offer this, or some firms offer a fixed fee pensions MOT), just to make sure you’re not doing something which will land you with a big tax bill or worse?

Hope this helps!