Dronfield-based financial planners, Belmayne, are advising pension savers to find out more about what is happening to the money they are investing.
Recent research by the firm has revealed some people are paying exorbitant fees, being subject to underperforming funds and having money invested in areas of concentrated risk.
Belmayne financial planner, Andrew Boulton, said: “We have reviewed a few pensions for new clients recently that have uncovered some shocking findings. Some were subject to fees of well over 2-3%, whilst others were being invested with consistently underperforming active managers or in small, high-risk sections of the market.
“A pension provider should be able to explain clearly and concisely where clients’ money is invested, how it is performing and what impact fees are having on returns. If they can’t do this, we can find out, at no cost.”
Belmayne focuses on the aspects of financial planning that can be controlled, to deliver a fair, transparent proposition. The firm’s total annual charges (including advice fees, fund fees and product fees) amount to 1.3% or less and it only offers evidence-based passive investments that are demonstrably more consistent than active ones.
Andrew added: “Our recent findings have made us worried that if investors don’t ask the right questions, their retirements are not going to pan out as they’d hoped. It is vital to determine if your pension contributions are enough, how the money is being invested and what fees you are paying and to whom. We don’t buy a car without understanding what’s going on under the bonnet, so why don’t people take the same level of interest in their pensions?”
Belmayne has created a four-point action plan to help savers work out if their pension is on track. It comprises:
• Check your state pension – are your contributions up to date?
• Check where all of your pensions are – who do you contact to obtain information about your pensions?
• Check the total fees you are paying – if they amount to more than 1.5% you should be asking why.
• Check how your money is invested – your pension provider should be able to clarify this and should not charge you extra for the privilege.
To find out more about Belmayne’s pension review services, telephone (01246) 298181, visit www.belmayne-ifa.com or follow the firm on X, @belmayne.
