Where to find Pension advice

Making the most of your financial adviser.

Here are five ways you can make the most of having a financial pro on your side, and understand how to best use a financial planner so they can maximize the value they provide to you.

1. Be open, honest, and coachable

This should go without saying, but a financial planner cannot help you if you don't share openly with them. That means disclosing all the details of your financial life — and I know that can be really difficult to do.

But remember, your planner isn't here to judge you (or shouldn't be; this is why it's really important to do a gut check to make sure you actually like and trust your planner before hiring them).

Your planner should create a safe place for you to lay everything out on the table. Together, you need to understand where things stand now in order to make the best comprehensive plan for moving forward and getting to where you want to go with your financial life.

In addition to sharing the numbers, share your thoughts, goals, fears, and worries, too.

Personal finance is personal; money is much more emotional than purely analytical. How you feel about your finances will impact your behaviour and your actions, so sharing openly with your planner will help them design a strategy you will implement.

There are probably a lot of routes and options that will eventually get you to where you want to go. The best one is the one you'll actually stick with over time. 

Finally, you also want to be coachable. That means being:

  • Open to feedback (and also open to change, based on that feedback)

  • Willing to take action once you have a strategy in hand

  • Ready to ask questions

  • Interested in learning

The best financial planner in the world won't do you a bit of good if you're not willing to change or consider new things in the process of reaching your goals.

2. Accept the accountability your planner can provide

Knowing what to do is one thing — and your financial planner can certainly tell you the right things to do with your money to make the most of it and build wealth over time. 

But how many times have you started a diet or exercise program because you knew that's what you needed to do to gain muscle or lose weight… only to find you fell off the wagon less than two weeks into your new routine?

Knowledge typically isn't enough when it comes to behaviour change, updating habits, and making progress toward long-term goals that could take months or years to achieve.

To best use a financial planner, definitely take advantage of the knowledge, advice, and wisdom they can give you… but make sure you lean on them for the accountability piece, too. 

Your planner should assign you action items or tasks to take after each meeting in order to move forward.

These could be really tangible, like "increase your contribution to your pension plan," or "transfer that extra cash from your current account to a short-term savings goal or a long-term investment account." 

Or they could be really intangible, like "talk with your partner about your priorities and be ready to share at our next meeting," and "think through what you would like to do next: buy a house or start a business." 

In either case, your planner should also follow up with the accountability to make sure you get this done. Just like a personal trainer holds you accountable to getting in the gym and doing the reps, a planner can send reminders, check in with you between meetings, and make sure things don't slip through the cracks as you make progress with your plan.

3. Listen, especially when they advise against something

Most people are focused on what a planner will tell them to do to reach their goals. But one of the most valuable things you can get from a relationship with a financial planner is listening to them when they tell you not to do something.

When you get panicky and want to sell out of your positions in your investment that you set up for long-term wealth building? Listen when your adviser says, "let's sit tight and stick to the strategy we designed before you felt emotional about this."

When you feel pressured to buy a home because your local market is hot? Listen when your adviser says, "I understand you don't want to miss out, but the plan we built has you buying a home in 5 years. Let's keep working on building up the deposit you need to buy the house you want."

Your adviser can help you stay focused, disciplined, and consistent with the actions you need to take — and avoid — on your way to building wealth.

 4. Ask for referrals to other professionals who can go to bat for you

You probably worked really hard to find a financial planner you trust, like, and enjoy working with — and repeating this process for every professional you need on your team sounds a little overwhelming, doesn't it?

Thankfully, you can just ask your adviser for referrals and recommendations.

Most planners have a professional network because they know that's a huge value-add to provide to their clients.

So when you need a solicitor or an accountant, ask your financial adviser for a referral to someone they know.

5. Uncover your blind spots

What we know typically falls into two categories:

  • The stuff we know we know

  • The stuff we know we don't know

These two areas are pretty easy to manage. When we know things, we can use that knowledge to our advantage. If we know that we do not know other things, we can choose to learn or ask questions to get the answers we need from experts who do have a particular domain knowledge.

Where we can get into trouble, however, is with a third category of knowledge:

The stuff we don't know we don't know.

In other words, we can get into trouble with our blind spots. When we don't know we don't know something, we don't have the questions to ask. We don't know what we need to learn. 

The blind spots aren't the problem. It's not asking someone to check them for you that will cause issues. This is where your financial planner can come in.

They can provide an objective, outside perspective on your finances and your financial plan to look for those things you didn't even know to check or ask about.

Together, they can work with you to eliminate blind spots and shore up your defences against the unknown.

Pensionwise

Understanding what Pensionwise is and how to use it

If you are aged 50 or over and have pension based on how much has been paid into your pot (a defined contribution pension), you can get free guidance from Pension Wise - a new service backed by the government. This guide explains how Pension Wise works and how to prepare for your appointment.

  • Free, impartial guidance – backed by government

  • How to get your free Pension Wise guidance

Free, impartial guidance

Pension Wise is a free government service that helps you understand what you can do with your pension pot money.

It offers guidance on the Pension Wise website about the options for taking your pension pot, and can help you understand the tax implications.

It also offers free guidance appointments over the telephone or face-to-face where you can talk through these options, ensuring you have the information you need to make the right decision.

Pension Wise can help you:

  • Understand the tax implications of each available choice

  • Understand the different options for accessing your pension pot(s), and the potential advantages and disadvantages of each

  • Understand the right things to think about when considering your choices, such as your plans to continue working, your personal and financial circumstances, and leaving money after you die

The service is impartial and free for you to use.

However, it won’t recommend companies or tell you how to use your pension pot or invest your money.

How to get your free Pension Wise guidance

You can get Pension Wise guidance online, over the phone or face-to-face.

You can visit the Pension Wise website by clicking here to see what the service offers and to begin to understand your available options.

If you want to book a telephone or face to face appointment call 0300 330 1001 .

Preparing for your appointment

To make the most of a Pension Wise appointment it would be helpful to have:

  • The value of your pension pot(s) and whether there are any guarantees or special features that apply to your pot. Check your pension statement or ask your scheme or provider for an up-to-date valuation. If you have more than one pension pot remember to gather information on all of your pots together

  • If you have lost track of any pensions, contact The Pension Tracking Service which is a free government-backed service

  • An estimate of how much State Pension you might get – get a State Pension statement from GOV.UK or call Tel: 0845 3000 168

Before your appointment, you should think about your financial circumstances as a whole.

Such as your current salary or income, your likely living costs in retirement, and any relevant savings or debts.

You should also start thinking about how you want to use your money in retirement; whether you just need small sums or would prefer a regular income.

The Pension Wise appointment will also discuss relevant points such as any medical or health conditions that might affect your life expectancy.

Which might result in you getting a better income in retirement if you buy an annuity, how any benefits you’re currently receiving could be affected by how you take your pension.

Next steps

Pension Wise will provide you with next steps for each of the options available.

Once you understand your options we recommend that you shop around to get the best deal before making a decision.

You can also speak to a financial adviser who will help you finalise your choices and find the right retirement income products for you.

You can find FCA registered financial advisers who specialise in retirement planning using this website.

Advice sources

An editorial by Which? magazine in June 2018 

Can I get free advice at retirement? 

If you’re unwilling or unable to pay for financial advice, you can get free guidance, in some cases ‘personalised guidance’, from a number of government-provided services – Pension Wise, The Pensions Advisory Service (TPAS) and the Money Advice Service. Which? used undercover fieldworkers to make a number of calls to the services in June 2018 asking for assistance with plans to cash in a £100,000 pension to pay off an outstanding mortgage and to consolidate three pensions into a single plan. 

Pensionwise 

Pension Wise was set up in 2015 to coincide with the introduction of the so-called pension freedoms. You can have a conversation over the phone (which we opted to do) or face-to-face, but you must be over the age of 50 and have a defined contribution pension. Despite the current eight-week wait for an appointment, our mystery shoppers eventually dealt with well-informed call handlers who asked personal questions and then covered the chosen retirement option in detail. The calls follow the same broad format, lasting about 45 minutes – questions about the consumer’s finances, health, family situation and pension provision , followed by points to consider with the preferred option, and finally an overview of the alternatives . In our scenario, the call handlers had some insightful observations about the tax liability if you take a pot in one go, even working out how much exactly you would pay in tax, and also gave clear warnings about potential scams. 

The Pensions Advisory Service 

Callers to The Pension Advisory Service (TPAS) can get straight through to someone to discuss their question. Our first call about cashing in the pension was fairly succinct, with the caller told to contact her pension provider, phone Pension Wise or seek financial advice. The other telephone call was more productive, with tax implications discussed and the dangers of having no alternative retirement income highlighted. Conversations about pension consolidation were again quite brief. However, some key considerations around the flexibility gained by keeping the pots separate, the potential loss of benefits and possible transfer penalties were outlined by TPAS . A point about managing separate pots effectively in the post-2015 world was particularly insightful. 

The Money Advice Service 

The Money Advice Service covers all financial issues, with phone menu options for debt, pensions, benefits, home/mortgages and ‘other’. If you choose pensions, you’re connected to someone at TPAS. We chose the mortgages option and explained we wanted to pay off our home loan by cashing in a pension. Speaking to a financial adviser was immediately suggested and some help given to find one. By their nature, the guidance services featured above will have their limitations. Call handlers can outline options and provide impartial guidance (sometimes ‘personalised’ to reflect your individual circumstances), but they can’t provide financial advice or recommend specific products.

Should I pay for financial advice? 

While the costs may seem high, paying for professional advice could be an invaluable investment – especially if you have little experience investing. A financial adviser has the tools and experience to help you plan for a future without work and make sure your savings last throughout your retirement. 

When should I see an adviser? 

An adviser can add value when you’re considering complex products, such as pension drawdown or investments, or significant decisions in life, such as retirement or arranging care, and don’t have the time, knowledge or confidence to make decisions yourself.

The Financial Conduct Authority (FCA)

The Financial Conduct Authority is the conduct regulator for 59,000 financial services firms and financial markets in the UK and the prudential regulator for over 18,000 of those firms…..read more 

About Us

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