Are you looking to understand what Unbiased Pension Advice is and the benefits to you?
Recognising the need and value for Pension Advice is the initial step in planning for retirement. The next step is to find Unbiased Pension Advice. Often looking for financial advice for any aspect of your finances can feel daunting. Hopefully this guide will offer information and guidance to help you make the best decisions for your own individual situation.
What is Unbiased Pension Advice?
Simply put, Unbiased Pension Advice is advice that serves your best interest with no bias towards particular pension products or providers. It would seem that taking unbiased pension advice would be the go to service for all individuals looking to manage their pensions effectively. However, with the number of financial services available through companies, online services, banks and building societies, this may not always be the clearest route.
Pension Advice can often be sought through an Independent Financial Adviser, Banks and Building Societies, directly through a pension provider or a Restricted Adviser.
What is a Restricted Adviser?
Often banks, building societies and pension providers will have their own in-house advisers. These advisers are known as restricted advisers. In-house they may have titles such as Product Specialist Adviser and are extremely knowledgeable about their own internal products and are able to advise from their own product range which is the best option for you. However, they have no opportunity to go to the further market outside of these to an alternative bank/pension provider. For some individuals this is a preferred option as they know and feel confident with a particular bank/pension provider. For others this is quite restricting and doesn’t give them a non-biased advice service from a range of pension product providers.
This is not to say a restricted adviser is a bad choice. With benefits including the confidence and relationship an individual may hold to this particular company. This previous relationship and trust may outweigh any financial gain that could be obtained through unbiased pension advice.
Additionally, if an individual already holds a pension product through the provider, and potentially other financial products. They may feel more organised and in control by keeping all these products being managed by one provider.
Can I go to my local bank or building society?
You can of course ask your local bank or building society if they have any pension products available to you. However the advice you receive from your local bank or building society is likely to be bias to themselves and be offered by a restricted adviser.
Benefits of an Unbiased Pension Advice
- No Restrictions
Obtaining unbiased pension advice offers more options for all types of individuals. Particularly those with a more cautious or adventurous attitude to risk. Being unrestricted by specific products and providers ensures a truer match between the pension product and the person.
- No Bias
By taking unbiased pension advice, you can be more confident the advice is given in your favour, as opposed to ‘filling quotas’. Within a restricted advisers catalogue of pension products, there will be specific products are often more valuable to them. If they gain to benefit from an individual using that particular product there may be bias/encouragement to make use that product. This can often work in the investors favour, but this is not always the case.
- No Ties
Having no ties a specific provider gives individuals the choices and freedoms to pick or be advised on pension products that are most suitable to them. This could take in to consideration investment preferences, such as attitude to risk, ethical considerations and reflecting on environmental issues.
Where can I find Unbiased Pension Advice?
For those who have decided that unbiased pension advice is the right option for them. The next step is to find an Independent Financial Adviser. A quick search on a search engine such as Google or Bing might be your first step, or looking through local advertising pages. By asking around, you may quickly be able to source an Independent Financial Adviser. There is likely to be quite a number of choices. You may wish to read our article on sourcing a Financial Adviser you can Trust.
How do I know I am getting Unbiased Pension Advice?
Ask. You are entitled to ask as many questions as you deem necessary before you decide to go ahead with any changes to your pension. Afterall, this is your money, so is your decision. All Financial Advisers are obliged to be truthful and serve your best interests in accordance with the FCA Regulations. The Adviser should tell you if they are tied to a particular pension product, pension provider, bank or building society.
With a good number of choices and avenues to take when taking any type of pension advice, it is important to take advice based on your own thoughts and feelings. If you are looking into unbiased pension advice, The Harvest Partnership Ltd are Independent Financial Advisers specialising in managing pensions based on your individual circumstance, and will always offer the best unbiased pensions advice for you. Please feel free to get in touch via our Contact Us page.