Do I Need a Financial Advisor for My Pension?

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Pension planning is a crucial component of our financial lives. To ensure that we are able to spend our final years in comfort and enjoy the time we have remaining with friends and family, we need to plan for retirement. For most of us, retirement planning will involve a pension of some sort. This article will explore what pension funds are, how financial advisors can help, and when a financial advisor may be required. In doing so, we hope to answer the question many clients ask: “Do I need a financial advisor for my pension?”.

What is a Pension Fund?  

Simply put, pension funds operate to provide an income stream to investors once they retire. These pension funds will use the capital invested by their members to purchase assets they hope will appreciate. These assets are usually comprised of index funds (ETFs), government bonds, cash, fixed-income products and mutual funds. Certain pension structures also include other assets, including stocks, corporate bonds, and even real estate.

Naturally, the pension fund hopes that the assets they invest in will appreciate over time and act as a revenue stream that they can use to make regular payments to their fund’s members after they have retired. There are a large number of pension plans that can be sponsored by employers, governments, or other organizations. As such, understanding what type of pension you hold or what type of pension is right for you can be confusing. This is where the help of an experienced financial advisor can benefit you.

What is a Financial Advisor?

Financial advisors are financial services professionals that can assist in decision-making. These advisors can provide tailored advice on a wide range of financial topics that include investment strategies, tax planning, portfolio management, and preparing for retirement.

Learning More About Your Pension:

A financial advisor can explain to you what type of pension you are a member of by providing you with a detailed overview of your structure. They can also provide you with information about the different types of pension plans, such as defined benefits, defined contributions, and individual retirement accounts.

Benefits of Seeking Financial Advice

  • For those interested in contracting the services of a financial advisor about your pension, here are the two significant benefits of doing so. 

Investment strategy 

  • Selecting a pension plan is a long-term investment with real consequences when you want to retire. With over 40,000 regulated pension plans in the United Kingdom, it may be challenging to decide which is best for you.
  • Financial advisors can help you select the appropriate plan for your specific goals and level of risk tolerance. In doing so, they can provide you with the confidence and peace of mind that your pension is being well managed and monitored by an expert. 

Pension Consolidation 

  • The days of working 40 years for the same company have long left us. On average, most employees today will have a total of 11 jobs throughout their working life. As a result, it can sometimes be difficult to track where your retirement savings.
  • A financial advisor can assist you in consolidating your pensions into a single, organized, and appropriate plan. This will allow you to retain valuable benefits while avoiding unexpected pension charges.

Cost efficiency

  • A financial advisor can review your pension’s charging structure to identify any areas where the costs can be reduced. They can then provide you with a comprehensive review of the options available, including any available discounts or fee structure changes that could result in a lower overall cost.

Investment Strategy

  • An advisor can assess the fund performance and recommend any changes that could help you achieve a better return on your pension. Additionally, they can provide advice on the most suitable investment strategy for you, taking into account your individual circumstances, risk tolerance and financial goals.
  • They can also explain to you the various tax implications associated with each type of pension plan. Additionally, they can provide you with advice on how to maximize the benefits from your pension plan and how to allocate your contributions in a way that is most beneficial to you.
  • Finally, they are on hand to explain the various features of a pension plan, such as the ability to make catch-up contributions, the ability to make early withdrawals, and the impact of inflation on your pension income.

With the help of a financial advisor, you will have a greater understanding of the type of pension you are a member of and how to best utilise it to maximise your retirement savings.

Circumstances Where a Financial Advisor is Required by Law

There are some aspects of managing your pension where a financial advisor is required by law. These circumstances relate to situations where an individual wishes to either;

(a) Cash in a pension over £30,000

(b) Transfer a pension over £30,000

The need for a financial advisor in these situations is a requirement implemented by the Financial Conduct Authority. The intention is to ensure the necessary safeguards are ready to protect the public from making potentially disastrous decisions around the most complex areas of pension management.

If you find yourself in a situation where the services of a financial advisor are required by law, please contact us as soon as possible to avoid any delays.  

Ultimately, the need for a financial advisor when selecting or managing a pension depends on the specific circumstances of each individual. For many, the services of a financial advisor will not be necessary.

However, if you need professional advice, or are in a situation where the services of a financial advisor are legally required, we can help. The deVere Group stands ready to provide you with tailored advice designed to help you meet your personal goals and targets.


Do you need guidance on your pension? Get in touch today to be put in contact with a UK pension specialist.

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