Sometimes you simply must get advice, such as if you want to transfer from a final salary pension scheme, but at other times it’s a choice. So, should I get some?
Advice is most relevant at key life events like retirement. Lot’s of decisions made at retirement will determine your future outcome. We believe it is the ideal time to take advice and get a clear recommendation on what to do, given your specific circumstances.
What will at retirement advice give you?
- An initial plan to try to ensure you get what you need, don’t run out of money, or overpay tax
- A starting investment strategy, suitable for you, that aims to get the growth you need
- The recommended mix of cash, guaranteed (annuity) and non guaranteed (drawdown) income
- A recommended provider (drawdown) or insurer (annuity) to use
How much does advice typically cost?
In short, it depends on the advice needed, but as an estimate, one off retirement advice on selecting a mix of products, providers and suitable investments may cost between 1-2% of the value of your pots. A minimum fixed cost at lower pot levels of around £1,000 will exist.
If your pot is smaller, the percentage may be larger if a fixed fee. For larger pots, it may seem better value if a fixed fee.
If after taking at retirement advice, you feel you will need continual help on an annual basis to make sure everything stays on track, you can usually get this for around 0.5% of your pot value each year.
Benefits of advice above doing it all yourself
- Everything is managed for you
- Advice is completely specific to your situation, risk appetite, tax situation, dependents
- Advice considers every choice available, assuming it is whole of market advice
- You get clear recommendations on what to do
- You have a right of complaint, and perhaps compensation, if ever badly advised
For those who don’t want to manage things themselves, have complex tax issues, or want clear recommendations from an expert, it really is the only option.
Finding good advice
Finding a trusted, experienced financial adviser can be difficult. Most “find an adviser” type sites do not undertake any checks on the advisers. Via Guiide, you can be confident of finding a suitable adviser to help you with your plan as we understand each adviser’s offering in detail before selecting them.
The latest addition to our adviser panel are M&G Wealth Advice.
They’re one of the largest financial advisers in the UK with over 94,000 clients having already trusted them with their money. They have advisers all over the country ready to help you plan your retirement to ensure you’re both financially better off, and have more time to spend on the things you love.
Their advice recommendations are from a carefully selected range of products and funds. This focused and controlled approach creates an in-depth knowledge of the products so they can safely and confidently recommend a solution that’s right for you. This is known as restricted advice.
Click here to see more details on their advice process
Disclaimer – We do not receive any one off referral fees from any of the partners on our site. Some partners may license the rights to use our technology, or we may have other long term commercial relationships with them but we do not receive any additional payment should you choose one.
