How Do I Find Independent Pensions Advice?

As the population ages, the question of pensions becomes increasingly acute. At the same time, pensions are becoming increasingly “big business”, and there are more and more on the market. 

If you’re thinking of taking out a personal pension, you can of course shop around yourself.  However, with more pension products coming on the market all the time, it will be quite hard for you to get an overview of the whole range of products, let alone compare them and work out which is best for you.  What’s more, if you buy a pension without advice, and it turns out not to be right for you, you have limited rights to complain or claim compensation.  So you would really be better off looking for independent pensions advice.

So if you decide you would like independent pensions advice, how do you go about finding it?

For a start, you would really be better looking for an adviser in your local area.  It all involves talking about pretty personal stuff, so you would probably feel more comfortable discussing it face to face.  If you have access to the Internet, you can find qualified people in your local area by doing a postcode search on one of the search websites such as www.unbiased.co.uk  - you can select which kind of service you particularly want, e.g. retirement planning.  Alternatively you can ask friends and family or use your local Yellow Pages.  In this case, before committing yourself, you should ask for proof that they are FSA authorised. 

When you first visit a provider of independent pensions advice, you will be given two Key Facts documents.  These will make it clear to you whether they provide information only or actually recommend products, and also whether they have access to the whole market or are tied to a single provider or a limited panel.  If you’ve got as far as looking for pensions advice, you will probably want someone able to recommend specific products and select from the whole market.  In addition to the two Key Facts documents, you will also be given a document that makes it clear whether the provider is paid via fees, commission or both.  There’s nothing to stop you visiting a few advisers to make sure their provision is suitable for you, and also that you find someone you feel comfortable with.

Once you start working with a provider of independent pensions advice, he/she will first look carefully at your whole situation.  This includes your age, your family commitments, your health, your employment or work situation, and your finances.  The adviser will also discuss with you what you are looking for in your retirement – whether you fancy early retirement or not, what kind of living standards you hope for in retirement, etc.  Some of this will be quite personal, but you need to be as open as possible as this is how the adviser will select the most suitable product for you.  If you work for a company that has a pension scheme, the adviser will discuss your reasons for leaving the scheme or not wanting to join it.

If the adviser is able to select a pension product that suits you, you will receive a Key Features document telling you everything about it, including the level of risk.  You have no obligation to go ahead until you are absolutely certain you feel happy with it.  The adviser should give you as much time as you need as it’s a big decision.

Independent pensions advice can be extremely important.  Your pension decisions can affect your whole life, more than almost any other decision you make.  So make sure you get it right. 

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