April 30, 2020

Why get pension advice?


Crystal Group

“The decisions you make about what to do with your pension pot will impact on the rest of your life after you retire.”

Mis-selling of private pensions is on the increase.

Why get pension advice?

Why get pension advice?

When you’re approaching retirement age, you’ll have lots of decisions to make, not least how you can convert your pension pot into a viable retirement income.

Why get pension advice?

Unless you’re a member of a pension scheme that will pay you a monthly income based on your salary at retirement, you will probably be in a scheme that will provide you with a lump sum, known as your pension pot. In this case, you’ll need to decide how you best to use your pension pot to provide you with a retirement income.

There are many options to choose from, but deciding on the right one for you is not a straightforward task. Other important considerations to ask yourself include:

  • When can I afford to retire?
  • How much will I receive in my State Pension?
  • Should I consolidate all my pension pots?

Making the right decisions concerning your pension is crucial if you’re to enjoy the comfortable retirement you’re hoping for. That’s why taking personal pension advice is so important.

Accessing your pension

The age at which you can start receiving your Government pension depends on your age and gender. At the moment, the Basic State Pension Age is 65 for men, and 62 for women. The age for both sexes will increase to 66 by 2020, and it is expected to continue rising after that date. You can use the State Pension Calculator at this link to see when you can begin to claim.

You can retire from work once you’re aged 55 or over, and once you reach this age, you can use your pension pot in any way you want to. There are lots of options for using your pension pot. That’s why you should take professional pension advice before you make any decisions.

If you are a member of a workplace pension scheme, your employer may put you in touch with a recommended pension advisor. However, if you’re self-employed and you have a personal pension plan, taking private pension advice is crucial.

Where can you get pension advice?

The Government’s service, Pension Wise, will give you free advice on what you can do with your pension pot. They will also go through the tax implications that the various options present. Armed with this information, you will have a greater understanding of your financial situation and you’ll know what questions you should ask a pension advisor.

Why use a pension advisor?

A pension advisor will provide you with personalised financial advice and recommendations based on a thorough fact-finding process.

Pension advisors are highly regulated by the Financial Conduct Authority, so you will have protection if the advice you receive turns out to be unsuitable for you. Also, professional pension advisors have access to a wider range of options than you could realistically access by yourself.

You’ll need to pay for professional pension advice. However, you’ll be paying someone with the experience and expertise to ensure that you don’t make life-changing mistakes. And, when you consider how much you could lose if you make the wrong decision concerning your pension pot, the advisor’s fee pales into insignificance.

Your advisor will provide you with information on their fees before you make any commitment to taking their advice.

How to choose a pension advisor

It’s important to choose a specialist pension advisor who is an expert in providing retirement advice. That way, you can be sure you’re receiving the very best guidance from someone who has their finger on the pulse of current investment opportunities and is fully au fait with the rules and regulations surrounding pensions.


In summary

The decisions you make about what to do with your pension pot will impact on the rest of your life after you retire. To be sure that you get the most from your investment, always take the advice of a professional pension advisor before taking action.

If you’re considering consolidating your pensions, or even thinking of leaving your workplace pension scheme, don’t do anything before you’ve spoken to a pension advisor. Mis-selling of private pensions is on the increase. Take professional advice to ensure you don’t fall victim to a scam.

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