|
|
Post by moonraker on Jun 13, 2023 12:53:33 GMT
St James's Place hasn't featured much in our threads, but a couple of years ago was prominent in Sunday Times (IIRC) coverage of the very self-indulgent jollies its high-performing salespeople advisers were treated to. It does have a high proportion of "satisfied" reviews, but analysts recently said that "80% of SJP unit trusts were rated as poor".
|
|
michaelc
Member of DD Central
Say No To T.D.S.
Posts: 5,703 
Likes: 2,981
|
Post by michaelc on Jun 13, 2023 14:02:50 GMT
Will be watching this thread closely as my current plan is to go with an SJP salesman as he was recommended by the people running my current pension scheme(!) Apparently he is the only person who can reliably transfer me out as others have failed. My pension scheme is significantly more complex than most as its a hybrid scheme and requires formal "advice".
Incidentally, the SJP scheme I was offered to transfer into would give me 25% cashback tax free at 55 plus fees of "only" 1.95% per year. I can leave after 5 years without advice and if I want to leave before there is a charge which starts at 5% then if I leave the next year its 4% then 3% and so on until zero.
Doesn't sounds that bad to me - a total layman ?
|
|
adrianc
Member of DD Central
Posts: 10,000
Likes: 5,139
|
Post by adrianc on Jun 13, 2023 14:52:59 GMT
My experience of them, slightly second-hand, would be to run VERY far and fast away from them.
F-i-L was "befriended" by the local "partner" or whatever they call themselves.
AFAICT, the advice mostly consisted of persuading F-i-L to pay for lunch at a local hostelry every few months. Yes, it really was that way round...
|
|
|
|
Post by moonraker on Jun 13, 2023 15:15:28 GMT
As mentioned some time ago, an old school-friend of mine joined the company, targeting masters at well-known public schools. A couple of years ago he was in dire financial straits due to well-meaning but misguided financial backing for a son hoping to break into the American film industry.
|
|
daveb
Member of DD Central
Posts: 253
Likes: 210
|
Post by daveb on Jun 13, 2023 19:43:55 GMT
They are the sort of organisation that gave birth to the saying "where are the customers' yachts?"
|
|
|
|
Post by mostlywrong on Jun 15, 2023 12:17:43 GMT
Will be watching this thread closely as my current plan is to go with an SJP salesman as he was recommended by the people running my current pension scheme(!) Apparently he is the only person who can reliably transfer me out as others have failed. My pension scheme is significantly more complex than most as its a hybrid scheme and requires formal "advice". Incidentally, the SJP scheme I was offered to transfer into would give me 25% cashback tax free at 55 plus fees of "only" 1.95% per year. I can leave after 5 years without advice and if I want to leave before there is a charge which starts at 5% then if I leave the next year its 4% then 3% and so on until zero. Doesn't sounds that bad to me - a total layman ? I am not an expert but that sounds expensive even against the likes of Hargreaves Lansdown.
I appreciate that you have described your current scheme as "complex" but once you transfer, and assuming that it is not an in specie transfer, does it not become a SIPP which can be as cheap as chips, at least relatively speaking?
Genuine question.
MW
|
|
michaelc
Member of DD Central
Say No To T.D.S.
Posts: 5,703
Likes: 2,981
|
Post by michaelc on Jun 15, 2023 12:56:35 GMT
Will be watching this thread closely as my current plan is to go with an SJP salesman as he was recommended by the people running my current pension scheme(!) Apparently he is the only person who can reliably transfer me out as others have failed. My pension scheme is significantly more complex than most as its a hybrid scheme and requires formal "advice". Incidentally, the SJP scheme I was offered to transfer into would give me 25% cashback tax free at 55 plus fees of "only" 1.95% per year. I can leave after 5 years without advice and if I want to leave before there is a charge which starts at 5% then if I leave the next year its 4% then 3% and so on until zero. Doesn't sounds that bad to me - a total layman ? I am not an expert but that sounds expensive even against the likes of Hargreaves Lansdown.
I appreciate that you have described your current scheme as "complex" but once you transfer, and assuming that it is not an in specie transfer, does it not become a SIPP which can be as cheap as chips, at least relatively speaking?
Genuine question.
MW
So if I go ahead with SJP then I believe it is a SIPP but not one I can transfer without further cost. The problem I have is that the workplace pension people themselves have told me if I pick any old financial advisor the transfer would be at risk as they said they have had failures before. The chap "recommended" from SJP was moved several people from the workplace hybrid scheme sucessfully. It does seem a little dodgy to me the idea of the pension staff recommending financial advisors but can't see any reliable alternative. Also the SJP doesn't charge for the transfer itself (as I understand it) which would normally (I think) be quite a lot hence the 1.95 pa is perhaps not _That_ bad. Crazy that the "advice" is so expensive I really need advice on whether to accept the advice or not.
|
|
|
|
Post by mostlywrong on Jun 15, 2023 17:15:22 GMT
I am not an expert but that sounds expensive even against the likes of Hargreaves Lansdown.
I appreciate that you have described your current scheme as "complex" but once you transfer, and assuming that it is not an in specie transfer, does it not become a SIPP which can be as cheap as chips, at least relatively speaking?
Genuine question.
MW
So if I go ahead with SJP then I believe it is a SIPP but not one I can transfer without further cost. The problem I have is that the workplace pension people themselves have told me if I pick any old financial advisor the transfer would be at risk as they said they have had failures before. The chap "recommended" from SJP was moved several people from the workplace hybrid scheme sucessfully. It does seem a little dodgy to me the idea of the pension staff recommending financial advisors but can't see any reliable alternative. Also the SJP doesn't charge for the transfer itself (as I understand it) which would normally (I think) be quite a lot hence the 1.95 pa is perhaps not _That_ bad. Crazy that the "advice" is so expensive I really need advice on whether to accept the advice or not. SJP is likely not charging for the transfer because it knows that it will make the dosh downstream.
My knowledge of this area is limited to the stories in the press where people have transferred their pensions in order to gain more control and to take advantage of the mis-pricing that has occurred over the last few years where the value of the pension in cash terms was much higher that the future cash flows. But the latter aspect has, likely, been dealt a body-blow by the recent sharp rise in interest rates.
Good luck with whatever you decide. Just read the small print...
MW
|
|
69m
Member of DD Central
Posts: 122
Likes: 215
|
Post by 69m on Jun 15, 2023 18:38:26 GMT
Will be watching this thread closely as my current plan is to go with an SJP salesman as he was recommended by the people running my current pension scheme(!) Apparently he is the only person who can reliably transfer me out as others have failed. My pension scheme is significantly more complex than most as its a hybrid scheme and requires formal "advice". Incidentally, the SJP scheme I was offered to transfer into would give me 25% cashback tax free at 55 plus fees of "only" 1.95% per year. I can leave after 5 years without advice and if I want to leave before there is a charge which starts at 5% then if I leave the next year its 4% then 3% and so on until zero. Doesn't sounds that bad to me - a total layman ? I'm another who has heard mostly bad things about SJP, in particular its limited choice of funds and their poor performance.
High charges are another issue because they can really affect the performance of a SIPP over time. Therefore, I'd suggest understanding exactly what the 1.95% encompasses - is it just the advisor fee, or does it include the platform fee and fund fees as well? The SJP web site talks about advice charges (4.5% initial, 0.5% ongoing), product charges (1.5% initial, 1.0% ongoing), and fund charges.
I'd also suggest clarifying what SJP means by 25% cashback. Is this a bonus payment that leaves your underlying pension pot unchanged, or is it just the ability (as with any other SIPP) to take out 25% as a tax-free lump sum? If it's the latter (it's probably the latter) and SJP calls it cashback, then that sounds rather misleading to me.
In your position, I'd talk to some other pension platforms (or even a proper IFA) before committing anything to SJP. Good luck!
|
|
michaelc
Member of DD Central
Say No To T.D.S.
Posts: 5,703
Likes: 2,981
|
Post by michaelc on Jun 15, 2023 19:33:45 GMT
Will be watching this thread closely as my current plan is to go with an SJP salesman as he was recommended by the people running my current pension scheme(!) Apparently he is the only person who can reliably transfer me out as others have failed. My pension scheme is significantly more complex than most as its a hybrid scheme and requires formal "advice". Incidentally, the SJP scheme I was offered to transfer into would give me 25% cashback tax free at 55 plus fees of "only" 1.95% per year. I can leave after 5 years without advice and if I want to leave before there is a charge which starts at 5% then if I leave the next year its 4% then 3% and so on until zero. Doesn't sounds that bad to me - a total layman ? I'm another who has heard mostly bad things about SJP, in particular its limited choice of funds and their poor performance.
High charges are another issue because they can really affect the performance of a SIPP over time. Therefore, I'd suggest understanding exactly what the 1.95% encompasses - is it just the advisor fee, or does it include the platform fee and fund fees as well? The SJP web site talks about advice charges (4.5% initial, 0.5% ongoing), product charges (1.5% initial, 1.0% ongoing), and fund charges.
I'd also suggest clarifying what SJP means by 25% cashback. Is this a bonus payment that leaves your underlying pension pot unchanged, or is it just the ability (as with any other SIPP) to take out 25% as a tax-free lump sum? If it's the latter (it's probably the latter) and SJP calls it cashback, then that sounds rather misleading to me.
In your position, I'd talk to some other pension platforms (or even a proper IFA) before committing anything to SJP. Good luck!
Yes "cashback" was just the regular 25% ability to take out that amount as with other SIPPs. Sorry that was my term. I will clarify the points you raise - thanks but I'm 99.9% sure he clearly said the _only_ charge would be the ongoing annual one. Normally I would definitely listen to what my peers are saying - both here and elsewhere. But I feel I'd rather waste a little more if it gave me almost certainty as to the transfer's success. My plan would be to stay 5 years then transfer again this time without advice.
|
|
