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Almost 40% of persons aged 20 to 35 don’t have a bank account, leave alone a retirement plan. Most people today are moving with the ‘YOLO’ trend, forgetting that they might end up seeing their great-grandchildren. With the years rushing and as sunsets come and go, you need to have a reliable retirement plan by saving into a pension scheme.
However, since these plans are complicated, you do need to seek independent pension advice from a financial expert. The pension advisor you choose will guide you on what you need to know and have before you decide on the best plan for you.
That said here’s a brief guide to pension advice.
Why You Need Pension Advice
Pensions are saving that you make to support yourself in the future. Reliable pension providers offer these plans, and they feature various options. You can receive a pension scheme from your boss, or even past employers – the workplace pension schemes. You can also set a pension plan up for yourself depending on your needs, the personal pensions, and those offered by the government – state pensions.
However, before you take a pension plan, you need to seek financial advice from a reliable pension advisor who’ll walk you through the whole process. They’ll also help you figure out the best option and guide you to investing in the best schemes.
With the myriad of pension advice online platforms though, it can be daunting trying to figure out where to find the best pension advice. Well, here are some of the reliable sources, based on their ratings and reviews.
Consider Getting Pensions Advice
When you are thinking about where to find pension advice, it is important to know why this type of help may be needed. A lot of people do not take advantage of the opportunities they have with their pensions because they don’t fully understand them or what questions to ask when working on a retirement plan.
Pension advice can come from financial advisors and planners, lawyers, accountants, or other professionals who specialize in these types of transactions.
Benefits of Pension Advice
Pension advice can be beneficial because it provides information on the financial and tax implications of pension plans, which may reduce some confusion for people who are just starting to think about their retirement.
It also helps people plan for what they want out of a retirement account by giving them an idea of how much money they’ll need every month in order to maintain their current lifestyle after retiring from work.
Where to Find Pension Advice
It doesn’t matter if you’re thinking about opening a pension pot, looking to transfer your pension scheme, or are close to retirement and considering various options. You can get reliable, straightforward, and free pension advice from websites like the Pensions Advisory Service.
That’s just one side of the story,
You should, however, ensure that you’re fully clued-up when you’re making pension decisions and seek further assistance if you need it. If you’re particular about free advice, be sure to consult a certified independent financial advisor1 (IFA) who’ll walk you through everything you need to know. If you want to transfer your defined benefits or defined contribution pensions worth over £500,000, then the IFA will be your best bet.
The Pensions Advisory Service
This provides information and guidance on pensions, retirement planning, and the options that are available to a person. They can provide pension advice over the phone or online through their website2.
Does Citizen Advice Help With Pensions?
The Citizen Advice Helpline supports those with various issues in retirement. For instance, in 2013/14, more than 150,000 people, based on the helpline’s statistics, requested for assistance with pension issues.
Locally, Citizen Advice Service is popularly known as the number one pension advice service platform when it comes to assisting people in figuring out their retirement investment option and making informed decisions that are best suited for them.
Do You Need Pension Advice?
Yes, you do. An independent financial advisor will help you figure out the best retirement planning scheme for you. They’ll evaluate your finances, personal circumstances, your objective and how you feel about financial risks. It’ll assist them in making the best recommendations on retirement income products like the type of annuity3 you need, drawdowns, and other policies.
You might also benefit from seeking the services of the Pension Advisory Service that’s specifically established to help retirees with their pension issues. Either way, as long as you get the proper guidance, you’ll be sure to make the right choices.
How Much Does Pension Advice Cost?
Well, this depends on your advisor. Typically, your pension financial advisor will offer you several payment options depending on the services you need, the extent of the advice you require, the amount of time it’ll take and the size of the assets involved. Some of the fees you can expect are:
- Fixed fee – this caters to the pension advisor setting up an annuity for a set price that you agreed on in advance
- Percentage of assets – if you have an advisor who’s managing your investment portfolio over an extended period, they might charge you a rate of the portfolio’s total value
- Hourly rate – some pension advisors might charge you an hourly rate for specific services (£150 per hour is the UK average rate)
However, in as much as there are various fees, each pension advisor has their charging rate, so you need to ensure that you have a sit down to discuss these rates beforehand. Here’s an estimation of the costs you can expect for typical pension advisor services.
|Advice and set up of £20,000 investment ISA||£600|
|Advice on a £500 a month pension contribution||£700|
|Advice on defined benefit pension transfer (based on a transfer value of £150,000)||£3,000|
|At-retirement advice on £300,000 pension pot||£3,500|
|Consolidating pension pots with a total value of £500,000||£5,000|
Why Do You Need A Pension Plan?
You might require a solid pension scheme if you:
- Require security in retirement. If you have limited fixed sources of income, the guaranteed income offered by a defined benefit pension scheme might be appealing
- Intend to stick to the same pension company for the long haul. If you’re planning to work for your boss for over ten years, then it does make sense to participate in a pension scheme. It’s because you’re more likely to become fully invested in the plan, which would, in turn, entitle you to all the benefits that you amass in the scheme
- Don’t plan on relocating to another place. If the job that makes you qualified for a pension plan is location-dependent – for instance, if you work as a police officer or teacher and the state runs your retirement plans, then it might be more sensible to choose a pension scheme since you work in that particular state
Pensions are a confusing subject to many people. There is so much information out there, and it can be hard to know where to turn for advice.
The good news is that:
You don’t need a degree in finance or economics to understand how pensions work. There are a lot of different sources out there that offer information and help on the subject.