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Cost of setting up Transition to Retirement pension with Salary sacrifice

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Gill Bates, 8th Apr, 2015.

  1. Gill Bates

    Gill Bates New Member

    Joined:
    28th Dec, 2006
    Posts:
    2
    Location:
    Brisbane
    Cost of setting up Transition to Retirement pension with Salary sacrifice

    I have a question about fees, I'm a member of a corporate AMP super fund. ( Signature Super )
    ( not sure if this is relevant, the Company has about 2000 employees and this is supposed to give us certain discounts )


    I want to set up a Transition to Retirement pension with Salary sacrifice.

    ie I continue to work full time, make salary sacrifice contributions to my super and top-up my salary with income from a Transition to Retirement Pension.


    My question is
    1a) what is a reasonable $ charge to initially set this up.
    1b) Roughly how many hours work would be involved?
    and

    2a) The yearly review ( to make any adjustments ) , what is a reasonable charge? and
    2b) Roughly how many hours work involved ?...


    Ive been quoted ... Advice Fee for the strategy is $2,750 and 0.44% ongoing

    I was thinking $2750 , would be 9 hours work if advisor changes $300/ hour etc

    Please educate me , where would the hours go , what other tasks would the adviser need to do - I have no idea .....


    Also the yearly review, 0.44% would be a fee starting from ~$1300/year to (like $3000/year ( if I decide to put more money into the super fund ...))
    How many adviser hours for the yearly review?

    Is $300 hour the going rate for such work ?
    I would like to ensure I get value for money


    Thank you (in advance ) for any comments .....
     
  2. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    Hi Gill

    I am not sure what the going rate for somthing like this would be, but it would entail a meeting, designing a strategy, drafting a SOA and providing pension documentation etc.

    However a planner with a 5 day diploma shouldn't really be charging like a lawyer. $300 per hour is what a juniorish lawyer would be charging.

    Oh and ongoing fee - just ask for a fixed fee rather than a percentage.
     
  3. jrc

    jrc Active Member

    Joined:
    3rd May, 2007
    Posts:
    32
    Location:
    Western, NSW
    Maybe you need to rollover your money to an industry super fund. Most industry super funds will set this up for a few hundred dollars.
     
  4. Christianrenel

    Christianrenel Active Member

    Joined:
    13th Jan, 2015
    Posts:
    31
    Location:
    Sydney
    The cost of setting up a transition to Retirement pension can vary. This can also depend on what stage you are in with the strategy.

    If you are starting the strategy from scratch then it would be more hours for the set up.

    If the strategy has already commenced, then a pension sweep will need to be done annually. This would not take as much time.

    With regards to Industry funds you pay for you get and over the years I have seen this to be true.

    Most adviser charge around $300 per hour for this type of work. Basically you are looking at around 6 hours x $300 = $1,800.


    Kind Regards

    christianrenel


    christianrenel@pricefinancial.com.au