Should I Take Independent Pension Advice?

Independent Pension Advice

Given new flexibilities and opportunities when it comes to retirement and taking your pension. Now is the time to consider whether Independent Pension Advice is the right choice for you.

In 2015, the pension freedom reform was introduced. This meant individuals could significantly change the way they utilise their pension pot. In previous years, planning for retirement may have encompassed saving in a private pension, contributing to a work-place pension as well as receiving a state pension. Since the pension freedom reform, many people have changed the way they save for and take their pension. Given the opportunities available, many people are choosing to take independent pension advice.

What is Independent Pension Advice?

Pension Advice is being advised that a certain pension product may be beneficial to you. Coming from a single pension provider, there is potential for this to be biased advice or ‘restricted’. There will be very little comparison with other pension products from other providers and no guarantee that this is in whole the best pension advice for you without searching yourself for other options.

Independent Pension Advice from an Independent Financial Adviser looks at pension products from the whole market. Across various pension platforms, utilising various funds to provide income and growth for your pension. The unbiased pension advice offered in regards to pensions is to ensure the best management and investment of a pension.

Why should I take Independent Pension Advice?

Over time, the responsibility for pension management has shifted to the individual as opposed to reliance on employers to deliver a pension scheme. While allowing individuals to make their own decisions which are relevant to their own lifestyles, these decisions are often difficult, with no clear, definitive choice.

Everyday we take advice from those we know to have a greater knowledge and insight into important matters. For example, healthcare, we approach highly trained Doctors, Nurses and Consultants, who undergo regular continued professional development to keep them at the forefront of their career. Choosing to take independent pension advice is the same. Financial Advisers are highly trained professionals, listed publicly on the Financial Services Register and undergo continued professional development to ensure they remain truly able to offer their best service for each individual client they serve.

Considerations to make when taking Independent Pension Advice

  1. The Cost
    When looking in to financial products as complex at pensions, it can ultimately be of greater benefit to yourself to take Independent Financial Advice despite costs involved. When you take Independent Advice, the costs involved should be discussed prior to going ahead with any recommended advice. You should fully understand what you are receiving ahead of confirming payment of any type.
  2. Your Attitude
    Throughout your meeting with an Independent Financial Adviser, they will be asking questions to derive your attitude to risk. There is no good or bad score, only a representation of the risk you are prepared to take with your money. Often higher returns come in line with higher risk fund, similarly lower returns with lower risk funds.
  3. The Adviser
    Choosing an Financial Adviser you can trust can be a substantial task in itself. Although recommendations and referrals from friends, family and acquaintances is often a good first step. Online searches can prove fruitful. Use websites and review sites to gain clarity of the type of adviser you may wish to work with.

With more pension freedom available, it allows people who hold pension pots more control. But considerations must be paid where necessary. Making changes to your pension can prove significant. It is essential the right decisions are made and that these are inline with your own lifestyle and future. Taking Independent Financial Advice can be an effective solution to your retirement planning to ensure any changes to your pension are made within your best interest.