Kara Gammell
AUTHOR Kara Gammell| CREATED 13 Jan 2016
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How an adviser helps… plan for retirement

A financial adviser can help you with all aspects of retirement planning – whether you’re starting to save for a pension or approaching the stage in life when you need to use it.

So will consulting an adviser make the difference between sipping 1982 Bordeaux – in Bordeaux and glugging flat lemonade on the prom? Maybe.

Understand what an adviser can offer

An adviser can work alongside you as you move toward your retirement goals. They will:

  • assess your attitude to risk and security of income
  • recommend specific solutions and product providers
  • help you implement their recommendations
  • look at changes to pension and tax rules
  • monitor whether your investments are performing better or worse than expected
  • suggest changes along the way based on your situation to ensure your financial planning remains on track
  • navigate the complexities of accessing your money in the most tax-efficient way, and making sure your income lasts as long as you do!

Where do I find a professional I can trust?

It’s always worth asking your friends, family or colleagues for personal recommendations. Don’t forget to approach your employer or union to see if they have advisers who will help, or you can use our Find an Adviser tool to look for an Adviser in your area.

But how much will it cost?

Some people are put off seeking financial advice because of the perceived cost. The key thing to remember is that good financial advice should cost less over the long term than no advice at all.

An Old Mutual Wealth survey1 found that taking advice and having an income target in mind can result in a 53% increase in retirement income versus those who sought no financial advice.

Initial consultations are often free, but do check. This meeting should enable you to judge whether paying for financial advice will deliver good value.

Following the Retail Distribution Review (RDR) in 2012, financial advisers are prohibited from charging commission on products that could be broadly described as investments. This includes pensions.

Advisers may take payment in a number of different ways. Always agree fees before engaging an adviser.

For more detail on the way charges work, have a look at this article from the Money Advice Service

1 Old Mutual Wealth, Redefining Retirement 2015.

 

Kara Gammell

Journalist

Kara Gammell is an award-winning financial journalist. She has written regularly for a number of national newspapers and magazines, including the Daily Telegraph, Sunday Telegraph, Guardian and Observer. Her first book Your Best Friend's Guide to Cash: Eight things every woman needs to know about money was published by Harriman House in December 2014. Born and raised in Nova Scotia, Canada, Kara lives in West Sussex with her husband, young daughter and two elderly rescue cats.