Pension Advice Charges and the race for the bottom

Pension Advice Charges and the race for the bottom

When we sat down with pen and paper and created Martin-Redman Partners our vision was to be clear, fair and not misleading. This ethos runs through everything we do from start to finish, including how we charge fees, what we charge and when we charge it.

The Consumers Association Which? magazine has published a recent survey that shows the lowest, average and highest quotes for financial advice in a few scenarios. (the published article is here and Money Marketing’s take on it is here).

For the first scenario, retirement advice on a pension worth £100,000, the average cost is £1,837, the lowest was £300 and the highest was £4,000. The cost from Martin-Redman Partners would be £1,500, our minimum fee and an implementation fee of £240, if we were to set up a new pension.

For the second scenario, consolidating multiple pensions to a total value of £150,000, the average cost was £2,897, the lowest was £300 and the highest was £6,000. Our cost would be £1,500, (1%) and an implementation fee of £240.

Although we have expressed our fees as a % of the sum invested, this is to reflect the way other advisers charge; whereas we would calculate the hours required and price accordingly. If you had pension funds of £300,000, spread across 3 schemes, then our fee would, in all likelihood, be very similar to the second scenario above (£1,500 + £240).

I will not continue to restate the other scenarios in the Which? article, as the trend is clear; we are not the cheapest, but we are certainly not expensive, we offer face to face advice, we recommended fully featured products and we have access to all the investment management tools you should expect a committed, professional independent financial adviser to use.

I would be concerned by a fee of £300; there is no margin in this, and certainly not enough to build a sustainable business, I would suspect that the adviser quoting these costs will have either hidden charges (a low initial / advice fee and high implementation fees are a common structure in our industry) or will be planning to up-sell and subsidise their work. Either way, there is always an element of risk with going with the cheapest.

The Which? report also highlights that nearly half of financial advisers do not offer clear details on charges on their websites, (46%). We do! Look at Our Services & Fees  and click on the link to “Information on our Services”.

You will be quoted an advice fee; we will tell you and you can deduce any implementation fee and you can calculate the ongoing advice fee at 0.75% of your funds we manage. We will give you costs in Pounds and pence, not a %.

Therefore, thank you Which? from all the clear, fair and not misleading advisers like us who still try to earn an honest Pound for an honest day’s labour. And please check, question and check again before committing to any agreement to ensure you know what your fees and charges will be.

If you would like to know more about how we can help you plan and realise your financial goals, then contact us at or call us on 01223 792 196.

The information contained is for guidance only and does not constitute financial advice. It is based on our understanding of UK legislation, whether proposed or in force, and market practice at the time of writing. Levels, bases and reliefs from taxation may be subject to change. Accordingly no responsibility can be assumed by Martin-Redman Partners its officers or employees, for any loss in connection with the content hereof and any such action or inaction.