All financial products make charges within the plan to cover the costs of arranging and running the scheme. Some of these costs are apportioned for the marketing and sales cost of the pension provider who may distribute their products directly and / or through Independent Financial Advisers.
Where the provider sells a pension directly then the marketing and sales cost proportion of the charges is retained by the provider to pay for its salesperson or web marketing team if you arranged it online.
If it was distributed through an Independent Financial Adviser then the sales and marketing proportion is paid to the IFA firm instead. This is known as a commission.
Essentially, whichever method you choose to access a product, the charges will be the same.
By using an Independent Financial Adviser however, there are several benefits
o They are independent so the advice that is provided is unbiased
o Their duty of care is to the client, not to the product provider
o They have unrestricted access to the whole market
If you use our free pension transfer review service there is no obligation to take forward any of our recommendations.
There is also the options to pay a flat fee for a pension review, and have any commission that would have been received rebated back into your plan.