Trying to think about the future when it comes to your pension needs or even an annuity down the road? You’re not the only one. Many people in the UK today are more concerned about retirement than ever before. Many are waking up to realize that if they don’t plan ahead as much as possible, they’ll actually end up without a comfortable retirement. This means working until they die, and who really wants to wake up to that type of future? No one that we know, of course. So if you’re really serious about making sure that you’re going to have the best future possible, then you definitely owe it to yourself to start thinking through what you’re going to do.
Some people skip over hiring an IFA (independent financial advisor), because they’ve been told that the IFA will charge a commission in order to work with them. They work on commission and they will give you advice — that’s the way it works. But if you’re thinking that you’re better off skipping over them completely, then you might want to think again. The truth is that you actually get more out of going with an IFA than directly to the pension provider.
Why is it this way, you might wonder? Well, it’s really simple — you will have to calculate in the fact that the pension providers aren’t trying to give you the type of advice that you need to really determine what’s right for you. Even if you’re trying to avoid the commission, you might find that they’ll charge you just as much even without the commission. And you’ll go without the independent advice that could help you avoid making a huge mistake.
Even though it’s true that you can transfer your pension around and around if that’s what you really want to do, the reality is that there are fees involved every time you transfer. There could be stiff penalties for messing with that money. Therefore, you’re much better off finding the type of policy that you really can count on. It’s better to do that than try to figure out everything on your own without the adviser’s help. Keep in mind that this is exactly what they do for a living. If you don’t spend your days mulling over annuities and pensions, then what chance do you have of surpassing what they can do for you? Internet research is important, yes — but there is something special to be said about professional advice.
You have to realize that there are limits to the IFA’s. You can get compensation if the advice they give you is faulty, but that doesn’t mean that you get compensated if your pension pot goes down due to the market. It’s something that you have to deal with as par for the course. Losses do happen but you stand to gain a lot more if you explore the pension world carefully. Good luck!