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Do you need a financial advisor to assist with your pension?

Journalist: Callum Mason, i

ended 25. November 2023

Getting a piece ready for the weekend about whether it’s worth seeking financial advice when deciding where to put your pension.

We know that you pay fees for an adviser (some flat, some a portion of returns) but we're seeking thoughts on whether it is worth it financially, given the bigger returns? Can people find the guidance themselves?

We also wondered if this might change once the new rules on ‘one pot’ pensions come in (if they indeed do come in)?

5 responses from the Newspage community

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Editor
Scott Gallacher
Director at Rowley Turton
When deciding on financial advice for your pension, weigh the benefits against the costs. Engaging with an independent financial adviser brings value in five key ways:

1) Maximising Returns: Professional expertise helps manages investments for potentially higher long-term returns and certainly for constructing portfolios tailored to your specific risk tolerance.

2) Tax Efficiency: Our advice minimises tax liability, ensuring you keep more of your money.

3) Avoiding Mistakes: We guide against common pitfalls like panic reactions, overconfidence, and under-diversification.

4) Time and Energy Savings: We handle financial intricacies, saving you time and worry.

5) Peace of Mind: Financial security comes from knowing your future is in capable hands.

Regarding 'one pot' pensions, we adapt to evolving regulations. Seeking financial advice is about holistic value, encompassing expertise, risk management, and peace of mind regardless of the number of pension pots you might have.
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Editor
David Stirling
Independent Financial Advisor at Mint Wealth
Using an IFA should help clients understand their attitude to risk (and appetite for volatility) and then place them in appropriate funds to match this. With regular assessment of attitude to risk and the amazing number of funds available, the advisor should be able to out-perform any fees they charge.

With execution-only investing you've only yourself to blame if things go wrong. Sometimes it's best to pay for an expert!
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Ross Lacey
Director & Independent Financial Adviser at Fairview Financial Management
If someone has the time, knowledge and inclination to do their own financial planning, as well as the temperament to take the emotion out of their financial decisions then by all means, have a go.

It always comes down to value, and whether someone feels it's more likely that they'll be successful in getting the outcomes that are important to them in life by working with a financial planner - such that the fees paid become great value for the difference it makes to their lives.
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Samuel Gee
Director at Manning Gee Investments Limited
You can approach retirement without a financial adviser, much like facing an illness without a doctor. However, just as a doctor enhances your chances of a healthier life, a financial adviser can significantly improves your retirement prospects. Their role is not just about numbers; it’s about understanding your goals, mitigating risks, and crafting a tailored plan. Opting for professional advice ensures a smoother journey into retirement, offering a sense of security and a roadmap to financial well-being for you and your loved ones.

A decent adviser will provide value far outweighing any fees charged, structuring investment and income efficiently. Crucially, they illustrate the longevity of your income, after all, the last thing you’d want is for your money to run out before you do.
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Chloe Phillips
Chartered Financial Planner at Pura Vida Financial Planning
The decision to manage personal finances largely depends on the individual, their circumstances and how confident they feel managing their finances. While some enjoy the process and research of personal finance, others may find it overwhelming. Free information is abundant out there for those who do want to do this themselves, it is just knowing where to look.

Engaging with a financial planner involves looking at all aspects of an individual’s personal and financial life, before crafting a financial plan based on their future goals and aspirations, with recommendations being a final consideration (not the first).

Key technical considerations include (5 points)
- Older style pensions can have valuable benefits attached to them, such as protected tax-free cash which could be lost once transferred.
- Assess whether existing contributions are sufficient to achieve the desired lifestyle in retirement.

i have more examples technical examples but ran out of characters.