Financial advisor experience

[ren531]

Any people offer their experience of financial advisors , me and the other half are soon going to start accessing are private defined contributions pensions and everywhere you see the default advice "get a independent financial advisor" in fact one has locked the pension because we don't have an appointed f/advisor.
Are pension fund's are quite modest by many standards and I've been doing lots of my own research which I am happy to do and have a plan mapped out, but my confidence in it could do with the opinion of someone who actually knows about these things but what's your experience, can you do your own research to an acceptable level?

 

[fossyant]

I've done my own research, but I am an accountant by trade. So long as you've had all the options from your pension providers, and you know what the various outcomes, an IFA is only going to tell you the same, and maybe offer some annuity options (if that's what you want). I didn't bother as I know doubt they cost a fair bit.

 

[Gunk]

My wife was an IFA and as she says the world has changed since she packed it in 20 years ago, if you are reasonably intelligent there is so much information out there to probably make your own informed judgement. However I personally still use an IFA and I’m lucky that firstly after a 10 year business relationship we get on really well, and secondly I completely trust him. However the road is paved with lots of grifters and bullshitters, financial services seems to attract them!

 

[ren531]

I've done my own research, but I am an accountant by trade. So long as you've had all the options from your pension providers, and you know what the various outcomes, an IFA is only going to tell you the same, and maybe offer some annuity options (if that's what you want). I didn't bother as I know doubt they cost a fair bit.

Not very experienced in financial matters, but our finances are uncomplicated by most standards .

 

[gbb]

I've done my own research, but I am an accountant by trade. So long as you've had all the options from your pension providers, and you know what the various outcomes, an IFA is only going to tell you the same, and maybe offer some annuity options (if that's what you want). I didn't bother as I know doubt they cost a fair bit.

Recently sorted one of my pots and as you say, I did the homework, used the free services of Pension Wise to make sure my thoughts weren't wildly off...then carried on with my plan, reasonably sure I hadn't massively miscalculated anything.

I talked to my BIL who really is switched on financially, he did the same...the fees an adviser may charge can be quite high I gathereed from him, perhaps makes sense with larger pension pots but both mine are quite modest.

 

[Drago]

I've often wondered why financial advisers are still working if they know so much about money?

 

[Gunk]

I've often wondered why financial advisers are still working if they know so much about money?

That’s very true, most I’ve met are pretty crap with their own money!

 

[mikeIow]

Any people offer their experience of financial advisors , me and the other half are soon going to start accessing are private defined contributions pensions and everywhere you see the default advice "get a independent financial advisor" in fact one has locked the pension because we don't have an appointed f/advisor.
Are pension fund's are quite modest by many standards and I've been doing lots of my own research which I am happy to do and have a plan mapped out, but my confidence in it could do with the opinion of someone who actually knows about these things but what's your experience, can you do your own research to an acceptable level?

Curious how one has locked the pension: why would that happen with a DC pension?

Have you spoken with PensionWise?
A Government backed scheme - see https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

They will NOT give advice, but should help clarify options for you….& provided you understand things, you can usually tick the box to say you have spoken with someone.

I’m fairly financially savvy, but found it useful to confirm my understandings of things before I started drawing down.

 

[ren531]

Recently sorted one of my pots and as you say, I did the homework, used the free services of Pension Wise to make sure my thoughts weren't wildly off...then carried on with my plan, reasonably sure I hadn't massively miscalculated anything.

I talked to my BIL who really is switched on financially, he did the same...the fees an adviser may charge can be quite high I gathereed from him, perhaps makes sense with larger pension pots but both mine are quite modest.

How useful did you find Pension Wise , going to book an appointment with them soon .

 

[mikeIow]

That’s very true, most I’ve met are pretty crap with their own money!

Agreed….or desperately wealthy (eg, St James Place!) - any with “Wealth Management” in their firm name would put me off - I always feel it is their wealth they manage to increase 🤪

Worth watching James Shack on YouTube for some common sense words about finances and retiring.

 

[ren531]

Curious how one has locked the pension: why would that happen with a DC pension?

Have you spoken with PensionWise?
A Government backed scheme - see https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

They will NOT give advice, but should help clarify options for you….& provided you understand things, you can usually tick the box to say you have spoken with someone.

I’m fairly financially savvy, but found it useful to confirm my understandings of things before I started drawing down.

Not spoken with Pension Wise but going to soon .
Still looking into the locked out pension, it's my wife's and been running many years, taken over by numerous companies over the years, never sent out annual statements, only contacted us to say action required, rang them today and we need to either appoint an advisor,apparently there was an advisor appointed for years but no longer in business or we need to move it .

 

[gbb]

How useful did you find Pension Wise , going to book an appointment with them soon .

They go through all the basic options available to you and explain the benefits and implications of each. They did ask the fund type and value then talked though the options. They didn't and don't advise you which is best...that's entirely your choice , and didn't break down costings such as annuity rates but do tell you where to find current approximations./ values.
Mine was a phone appointment, you'll need a pen and paper, there's a lot of info to soak in, some of which I didn't really digest. Appointment lasted a good hour.

Very polite and helpfull, no pressure, happy to answer any questions I had.

 

[Emanresu]

My wife was an IFA and as she says the world has changed since she packed it in 20 years ago, if you are reasonably intelligent there is so much information out there to probably make your own informed judgement. However I personally still use an IFA and I’m lucky that firstly after a 10 year business relationship we get on really well, and secondly I completely trust him. However the road is paved with lots of grifters and bullshitters, financial services seems to attract them!

About those grifters ...story of someone whose advisor stole their pensions. Then HMRC came along and demanded tax on the stolen money. (IMHO HMRC were correct)

https://www.telegraph.co.uk/news/2025/03/20/pension-fraud-victims-being-taxed-on-lost-money/

Pensionwise should be the first port of call if only to give a baseline. Then check the advice against HMRC.

 

[ren531]

They go through all the basic options available to you and explain the benefits and implications of each. They did ask the fund type and value then talked though the options. They didn't and don't advise you which is best...that's entirely your choice , and didn't break down costings such as annuity rates but do tell you where to find current approximations./ values.
Mine was a phone appointment, you'll need a pen and paper, there's a lot of info to soak in, some of which I didn't really digest. Appointment lasted a good hour.

Very polite and helpfull, no pressure, happy to answer any questions I had.

Ok sounds very useful and will definitely be writing as much down as possible, thanks.

 

[PaulSB]

I have been with the same FA for +/-20 years. We have become firm friends and I trust her implicitly. Over time she has taken the trouble to understand me, my family, our hopes and aspirations. Broadly speaking I feel one needs advice with two different objectives; during one's working life how best to provide for retirement and in the run up to retirement how to manage those funds. As you're about to access your pensions you are, I presume, looking for advice on how to manage those funds.

For me this is the point at which the advice changes, my FA is now my Financial Planner. She provides me with cash flow forecasts based on my savings, income, current and future needs. I understand the likely outcome of any financial decision I consider or make and clearly understand the impact of any "what if" scenario. Before retiring I analysed a full year's expenditure to understand our spending. This information underpins the cashflow forecast and when coupled with income and savings shows very clearly what one can afford to do.

My view is one needs a clear financial plan with an understanding of the "what ifs" before one can make a decision on when and how to access pensions. I can easily put together a good analysis of my annual spending, trying to forecast the performance of my savings and pensions is way beyond my ability. Without a Financial Advisor/Planner I wouldn't be able to understand my situation, with one I know the likely outcome of any decisions I make and don't have to worry at night. It is a question of understanding the whole picture and not taking different areas in isolation.

I'm sure there are FAs who don't always act entirely in the client's best interest but I feel sure these are far outweighed by thousands of hardworking, trustworthy individuals. As for the cost? Can one afford not to take such advice? I view my FA's fees as a part of my investment in my future.

I should add, we are not wealthy people, just ordinary folk who have worked and now enjoy a small private pension and state pension.