You may find that the cost of financial advice changes based on where you’re located in the UK. If you fear that you may have been targeted you can report suspected frauds on the ActionFraud helpline 0300 123 1047 or online at Our biases are one of the biggest risks for self-investors. What are the best questions to ask a financial adviser? I would have complete control over the level of income drawn, which would have potentially huge benefits from a tax-efficiency perspective.

This is likely to come up if you are changing job; your pension scheme is closing; you wish to transfer into a better pension scheme; or you have pensions from previous employers that you would like to combine. Alternatively, if you have two pensions you could buy an annuity with one pot and invest the other.

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If someone contacts you unexpectedly and says they can help you transfer your pot it’s likely to be a pension scam. What do online reviews tell you. Taking all your tax-free cash up front might not be a good idea for you and it could cost you more in the long-run. Every year we help over 2 million people but that's not enough. In fact, research by International Longevity Centre-UK showed that people who consider themselves ‘just getting by’ financially could benefit from even greater gains that more affluent individuals – although both benefitted from a significant gain versus their non-advised peers. This means they can command a percentage of your portfolio’s total value, anywhere from 0.5% to 5%. And the pension will generally rise in line with inflation (subject to limits) and so the ‘inflation risk’ falls on the scheme and not the individual. You raise a fair point about the cost of advice, and there is no reason why you should have to pay up to 5 per cent of the value of your pot. The number of people who will be liable for inheritance tax has risen in recent years as UK house prices have gone up. A financial adviser is held to strict industry standards by the Financial Conduct Authority (FCA). Yet when you consider the costs involved, is it worth seeing a financial adviser, HOW DO DEFINED CONTRIBUTION AND FINAL SALARY PENSIONS WORK? The number of people who will be liable for.

You might not notice the odd 1 or 2% now, but compounded over a 30 year retirement your pension pot could be worth a lot less than you thought and your lifestyle could suffer because of it. During the 2018-19 tax year, you can receive tax relief of up to 100% of your earnings or a £40,000 annual allowance – whichever is lower. The IFA thinks the clamp down is a lot to do with being able to use the pension income as a contribution to future care costs. Return and risk are inversely related, meaning high returns almost always comes with higher than average risk. The problem is, investment blogs and news providers only publish what they feel is ‘newsworthy’, so there is a tendency towards attention grabbing headlines, which might provide a skewed perspective of the truth.

But if your pension is based on investment performance it would be a wise move. There are a number of times when you may decide to employ the services of a financial advisor to help you with your pension: Most people get financial advice from friends, family and co-workers, which can be incredibly risky. This gave me a well-diversified portfolio which I would expect to make at least 3.5 per cent pa above inflation, on average, net of fees. At my firm, we regularly say ‘No’ to clients after analysing their situations and objectives. If you are writing to Steve on this topic, he responds to a typical reader question. Information Commissioner's Office registration: ZA131262

One of the best things about independent financial advice is the personal recommendation you’ll receive. But you don’t know how long you need the money to last – this is where a financial advisor can help. With the help of my family and my colleagues, I weighed up my options. For many people, help with managing the money over the decades of retirement is money well spent, but if you feel you do not need that help then you do not have to take it. Meanwhile, for a £200,000 pension pot there was an average at-retirement advice fee of £2,500. The value of your defined benefit pension gets transferred as cash and is invested into a defined contribution pot. Do I have to pay 3 per cent to 5 per cent, plus annual charge for someone to tell me what I already know and then recommend a transfer to a product that I already have? It’s important to balance your portfolio regularly to allow for this. Financial Advisers can offer alternative actions that you haven’t thought of.

It’s a careful balancing act to maximise your returns, whilst minimising your exposure to risk. , regardless of whether you consider yourself wealthy enough to need one. IMPORTANT NOTE: It’s always advisable to seek financial advice before you do any kind of pension transfer to make sure that you’re not losing valuable benefits by doing so. Nick Green is a financial journalist writing for, the site that has helped over 10 million people find financial, business and legal advice. Those with DB pensions can transfer their savings to DC schemes, provided they get financial advice if their pot is worth £30,000-plus. However, fear not - there are a number of services out there which are designed to help consumers to find a reputable adviser who can meet their requirements.


You also have access to 25% of your pension pot as tax-free cash. Your pot may have had ‘market value reduction’ or ‘adjustment’ applied – ask your provider about the difference in values. Help me help more people by sharing the site with your family, friends and colleagues. Independent financial adviser Rajesh decided the time was right to transfer his into a self-invested personal pension (SIPP). Use our calculator to help you plan. A financial adviser will ask you to complete a risk questionnaire. For example, if a substantial proportion of your pot is withdrawn in one go, it could push your tax rate up. I could see that £25,000 per year for life would be very welcome – but it wouldn’t be ‘life-changing’.

Saving For Your Future > Pensions > Do I need a financial adviser to cash in or transfer my pension?