Tax treatment depends on your circumstances and is subject to change
Pension Access has a rating of 4.77 out of 5 on reviews.co.uk. We specialise in pensions and retirement planning, and we currently manage over £½ billion in pension savings for our clients. Every 1 hour and 6 minutes someone in the UK asks Pension Access to help them with their pension.
You might be tempted to manage your pension savings yourself. And the DIY approach can work for some people. But it’s not easy. There’s a lot of admin, portfolio checking and complex financial decisions to make. And if you make a mistake it’s all on your shoulders. There is no protection. This is why so many people enlist the help of a financial adviser, especially when they are making significant and irreversible decisions, such as taking money early from their pot.
£47,706: on average, this is how much more wealth people have when they take financial advice1.
Like all products and services, when it comes to financial advisers there are both good and bad. So, in a moment we will run through:
Before that, though, it’s worth tackling what can be one of the biggest barriers people face when it comes to accessing financial advice. And it’s all down to perception.
The simple answer is no. While many advisers choose to only help people with larger retirement pots, you could benefit from enlisting the help of a regulated financial adviser, even if your pension is relatively small.
“In our experience, we can start adding value for clients if their pension is worth around £15,000 or more.”
As well as the added protection, less hassle and reduced admin we have already mentioned, using a reputable financial adviser means your pension savings should have the best possible chance to grow. And more growth means more money for you when you need it, whatever the size of your pot.
While no financial adviser can guarantee you pension growth – past performance is not a reliable indicator of future results – how your pension savings are invested matters. That’s why a sound, balanced and proven investment philosophy is one of the key things to look for when choosing a financial adviser.
As well as checking out an adviser’s investment philosophy, here are five other things to look for when choosing a financial adviser.
The bottom line is: if a financial adviser is not regulated by the Financial Conduct Authority then do not use them. The Financial Conduct Authority is the government regulator for the financial services sector in the UK. And their rules represent the bare minimum you should expect from your financial adviser.
Peer approval is one of the strongest forms of authority there is. And the internet has been a great leveller for consumers. It only takes a few clicks to see if a company’s claims are matched by real-life experiences. So, when choosing a financial adviser, have a look around to see what other people have made of the service they are offering.
Pension Access has a rating of 4.78 out of 5 on reviews.co.uk
Like all products and services, industry or media awards are another good way to check and validate the claims of any financial advisers you are thinking of using. If the company has won an award or two, it’s likely they are doing something right.
While there is a cost to receiving financial advice, some advisers will charge a proportion, or all of this fee upfront. So, even if their advice is to not make a change to your pension, you could end up paying money despite nothing changing. And that can be galling. It’s worth looking for an adviser that will check your pension with no obligation. This is the service we offer at Pension Access.
Our initial investigation into your pension will not cost you a penny and any advice charges are confirmed in writing before you have to make a decision to proceed. This means you can walk away better informed with nothing to pay.
New Financial Conduct Authority regulations mean that not everyone can benefit from full advice with no obligation. If this applies to you, your financial adviser should let you know in writing, clearly stating how much it would cost to take the next step. So, you still shouldn’t have to pay a fee upfront to find out the options you have.
With Pension Access our initial investigation into your pension will not cost you a penny and any advice charges are confirmed in writing before you have to make a decision to proceed.
Are you looking for a financial adviser to take care of everything for you, or to lift the bonnet and talk you through the complexities of pensions?
If you are interested in how it all works then a good, reputable financial adviser will take the time to talk you through what you want to know. But if they are using technical and complicated language upfront, you’ve got to question how much they really understand and empathise with the needs of their clients. Keeping it simple with plain English should be a given when it comes to choosing the right financial adviser for you.
At Pension Access we love plain English.
The simplest way to make sure your pension is in the best possible hands is to only use a financial adviser that’s regulated by the Financial Conduct Authority. You can check this by visiting their website and typing in the company name. If they do not come up as authorised, then don’t use them. There are also five other tell-tale signs that an organisation or individual might be trying to pension scam you.
If someone is trying to get you to switch your pension with the promise of guaranteed returns on your pension investments then steer well clear. It’s a false promise.
In almost all cases you cannot withdraw your pension savings until you turn 55. There are limited exceptions to this. See Pension Wise: Can I cash in my pension before 55? for more information.
Scammers will often use persuasive language that may feel attractive at first glance but has no substance. If you are thinking of contacting a company that uses any of the following phrases, please think again:
A genuine financial adviser will give you all the time you need to make a decision. If you are being pressured into making a quick decision about your pension then it could well be a scam.
As of January 2019 it is illegal for a company to cold call you about your pension. So, if a company phones you about your pension out of the blue then simply hang up.
At Pension Access, we will only phone someone if they are a client or they have asked for more information about the services we offer.
We can help you to make the best possible decisions when it comes to your pension.
Taking pension money early is not right for everyone as it will leave you worse off in retirement. Also, tax treatment depends on your circumstances and is subject to change. That’s why it makes sense to get help from a regulated specialist.
