Guide · Pension fees
How much does a pension drawdown adviser cost?
Drawdown advice can involve both an initial retirement decision and an ongoing service. Make sure you know which of those you are paying for.
Initial drawdown advice
The initial fee may cover gathering pension information, retirement planning, comparing options, recommending a drawdown arrangement and helping with implementation. The charging model can be fixed, percentage-based or another disclosed structure.
Ongoing drawdown advice
An ongoing service may include withdrawal reviews, investment oversight and changes as retirement spending or circumstances move. Ask exactly what recurring work the fee pays for.
Separate the different costs
Adviser feeThe cost of regulated advice and ongoing planning.
Platform or pension feeThe cost of the account or provider.
Investment chargesThe cost of funds or portfolios held inside the pension.
Transaction or withdrawal costsSome providers can charge for particular actions or services.
Compare the cash amount over several years
A percentage that looks small can become a large annual cash cost on a substantial pension. Use the annual pound amount when comparing ongoing services.
Sources & further reading