Product category:
Pensions and retirement
News Release from: Fidelity International | Subject: Pensions
Edited by the Insidemoneytalk Editorial
Team on 06 February 2008
How much are you really paying for your
pension? Asks Fidelity International
Six out of ten savers don't know how much they pay in charges on their pension
One-third of pension savers did not consider the charges when they chose the plan Fidelity and FundsNetwork offer 'free pension wrapper' whether investors are self-directed or seek advice Fidelity International is today urging pension savers to review their existing pension plans, as new research* shows six out of ten savers have no idea how much they are paying every year in charges
This article was originally published on Insidemoneytalk on 18 Jun 2007 at 8.00am (UK)
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Nearly a third of people (31 per cent) with a stakeholder pension and one in three (33 per cent) with a Self-Invested Personal Pensions (SIPP) are unaware of the charges they pay.
Of those who are aware of charges, more than a quarter (27 per cent) feels that they are set too high.
This figure rises to 46 per cent among those with a SIPP.The research also found that one in three pension savers (33 per cent) admitted to not even considering the charges when they took their policy out, despite the fact they could be squandering hundreds every year in unnecessary high charges.
Further reading
Fidelity International sets up IFA referral process for savers with complex pension needs
Direct arm to refer clients to local advisers for pension planning advice Five IFA firms in the client's area to be drawn from Fidelity FundsNetwork user-base
A free pension wrapper for life from Fidelity International
No set-up fees, no annual administration charges, no initial fees on funds Free* transfers from higher cost personal pensions
Fidelity International's retirement microsite wins award at Online Finance Awards 2007
www.rewritingretirement.com named best online creative
David Dalton-Brown, Head of Fidelity FundsNetwork said: "Most people would not dream of paying over the odds for their gas bill or their car insurance, yet a pension, as one of the most important pieces of financial planning you will ever do, is often overlooked.
It is equally important that savers in to personal pensions, including SIPPs, make the most of their savings and ensure that high charges are not eating away at their long term returns." "Our SIPP based pension options are completely flexible and offer a huge variety of funds for inclusion, whether a simple tracker, or more exotic emerging markets funds.
This makes them equally suitable for the saver who wants the low-cost easy option, perhaps by combining it with a simple index tracker fund as well as the one who is happy to actively manage the portfolio themselves." Whether investors want to make their own investment decisions or speak to an adviser, Fidelity International and Fidelity FundsNetwork offer them two clear options each with a special offer currently running: Fidelity Personal Pension: Minimum contribution to the Fidelity Personal Pension is £10,000 for lump sums or transfers.
Regular savings start at £300 per month or £3,000 per year.
Investors who save into the Fidelity Personal Pension up to the 30 April 2008 will pay no set-up fee and no annual administration charge for the life of the plan**.
Savers can call 0800 085 0923 for a personalised illustration of what their pension could give them in retirement.
The Fidelity Personal Pension will accept transfers from personal pensions and other SIPPs, but not from occupational pension schemes including EPPs, SSASs, Section 32s and AVCs.
Savers with more complex retirement needs - such as drawdown, or a transfer from such occupational schemes - can be referred by Fidelity to local independent financial advisers***.
Fidelity FundsNetwork SIPP (advised investors only): FundsNetwork is waiving core plan fees*** for IFAs who make platform mutual fund investments on behalf of their clients of £150,000 or more, placed into the FundsNetwork SIPP between Monday 4th February 2008 and Friday 2nd May 2008.
This means that the only fees paid by investors pre-retirement will be the underlying annual charges on the funds and any charges relating to adviser commissions.
Other administration charges will apply if a client makes use of income drawdown in retirement.****.
Fidelity International Limited ('FIL') and its subsidiary companies serve the major markets of the world by providing investment products and services to individuals and institutional investors outside the US.
The FIL Organisation manages a total of £151.7 billion of assets*****.
*Source: Research conducted online by YouGov amongst a sample of 1,995 people between 5th and 7th December 2007.
** Investors who are referred to an adviser will not be eligible for Fidelity Personal Pension, but can take advantage of the current offer on the FundsNetwork SIPP.
*** Core administration charges mean initial set-up charge and yearly administration charge.
It does not include any in-retirement administration charges such as income drawdown.
**** If a client invests into assets other than platform mutual funds, Standard Life insured funds and the trustee bank account, they will no longer qualify for the offer and standard administration charges will apply.
In order to qualify for the offer a valid quote must be obtained and the application accepted before the offer is withdrawn.
The SIPP special offer is only available between 4 February 2008 and 2 May 2008 although FundsNetwork reserves the right to withdraw this offer at any time.
FundsNetwork will give two weeks' notification of termination.
*****Source: Fidelity as at 31.12.07.
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