Wallet and cash

Why do you charge £1,000 to review a pension or ISA?

Simple answer to a simple question:

We charge £1,000 to review a pension or ISA because on average, that’s what it costs us to do the review.

Let me explain a little further, it’s quite an involved process.

Step 1: write to the providers. We send you some Letters of Authority to sign, and when we get them back we send them onto the providers. We then check with the providers that they’ve been received, and ask when we might receive the information back. If they miss their deadline, we contact them again to hurry things along. Lots of time on the phone on hold!

TIME SPENT: 4+ hours – Paraplanning Team

Step 2: the information arrives and is logged onto our CRM system, checking for any gaps in the information. Sometimes the providers miss things and we need to go back to them and re-request the missing pieces.

TIME SPENT: 1 hour (usually) – Practice Manager

Step 3: the Adviser performs a review of the information, makes an assessment of the charging structure and the policy features, builds the portfolio on our Analytics software to work out its risk profile and asset allocation. Gives a preliminary recommendation to the Paraplanning Team about likely action and whether or not the plan is suitable and whether it will help to achieve the client objectives.

Assuming there are changes to be made, Adviser researches options and constructs various comparisons to formulate the advice in the report.

TIME SPENT: 4+ hours – Adviser

Step 4: Paraplanning Team writes up the report and submits to case checking. Any remedial work is undertaken and the report is finalised.

TIME SPENT: 2+ hours – Paraplanning Team

Step 5: Adviser organises a meeting with the client to present the findings and go through how the new plan can look.

TIME SPENT: 1+ hour(s) – Adviser

As you can see, it’s at least 12-hours work, even for simple products. Sometimes it’s marginally quicker, and often it takes significantly longer.

The intention behind the fixed fee is that it covers our costs, but remains affordable.