Advice and guidance
The 2015 pension freedoms give you greater choice than ever before over how and when to take your retirement income.
To help you understand your options and make the right choices, the Government has introduced a free and impartial guidance service – Pension Wise – to people who are considering what to do with their pension pot.
If you find you still have unanswered questions, or are unsure about the best way forward for your circumstances, then financial advice may be for you. After all this decision is likely to affect the rest of your life.
Find out more…
Where can I find independent guidance? +
Pension Wise is the Government’s free and impartial guidance service for people who are considering what to do with their pension pot. You can access guidance face-to-face and over the telephone.
- Discuss your options and provide information on each of your options and their outcomes e.g. income tax implications
- Identify issues that you should consider including income sources, life expectancy and possible future care requirements
- Provide you with the next steps you need to take and a record of your guidance session, which should summarise key facts, potential issues for your consideration, information or advice you will need and details on how to shop around for financial products
Their dedicated website is also a rich source of useful information.
Why do I need advice about retirement? +
Put simply, even if you have to pay for good financial advice, it might save you money in the long run. You may be very clear about what you’d like to happen and how you’re going to secure a comfortable retirement financially, but the fact of the matter is that decisions you make now could affect you for the rest of your life.
With financial advice a qualified professional financial adviser makes a recommendation based on their analysis of your needs and financial assets such as property, pensions, savings or investments and other income. They are responsible for giving you the best financial solution for your individual circumstances.
You can be reassured that financial advisers are up to speed with the latest changes in pension rules and regulations, taxation and the products that are available to provide retirement income.
Where can I go for advice? +
Some workplaces provide employees with access to financial advice but if that’s not the case you could consult an independent financial adviser or a reputable financial services company that provides financial advice.
If you don't currently have a financial intermediary, you can find one online at www.thepfs.org/ or www.unbiased.co.uk. Advisers may charge for providing advice and should confirm any cost to you beforehand.
How can I be sure it’s good advice? +
Once you have contacted an adviser and discussed your circumstances, finances and needs, you’ll receive a 'suitability report'.
This summarises what you discussed as well as making recommendations for you.
It’s important to read all the information you’re given carefully and ensure it reflects the discussion you had. If you are unsure about any aspect or recommendation just ask your adviser and they will be happy to explain.
How much does advice cost? +
Deciding how to turn your hard earned pension savings into a retirement income is a once in a lifetime decision so it’s important to make an informed choice.
Getting independent financial advice on products and services that will help to provide income for the rest of your life isn’t cheap, it’s likely to cost you a few hundred pounds. In return really good, sound advice can save you money in the long run and help you to make wise decisions that give you a more secure income.
Without it, you could make expensive mistakes.