Role of IFAs in pensions

seven-day-weekend

As far as I can see from the replies given, he wants to make sure that you understand what you are doing and then advise accordingly. What he can't do is guarantee the performance of your pension (or any other pension) and it would be unfair to expect him to do so.

dunstonh

Layo909 wrote: »

So to finish off, would somebody mind summarising exactly what an IFA is expected to do (in terms of pensions advice)? What should I expect to receive in return for the money I pay?

1 - are you employing the IFA on transactional (one off/ad hoc) or servicing basis? That will indicate the service you will likely get

2 - are you after a simple option or best option?


The IFA should find out about you, discuss your needs and objectives, find out what your level of understanding is, give you some knowledge about how it works and why and then research the providers and investments and put in place a solution to fit all that.

Layo909

dunstonh wrote: »

1 - are you employing the IFA on transactional (one off/ad hoc) or servicing basis? That will indicate the service you will likely get

2 - are you after a simple option or best option?


The IFA should find out about you, discuss your needs and objectives, find out what your level of understanding is, give you some knowledge about how it works and why and then research the providers and investments and put in place a solution to fit all that.

Servicing basis/best option.

dunstonh

Servicing basis would require you to have a greater understanding as when the IFA contacts you to rebalance the portfolio and ask your permission to proceed, you have to be in a position to understand that.

Servicing is typically best because your investments are tweaked and rebalanced to remain consistent with your risk profile and contracts reviewed to ensure they are still the best option. You wont find yourself 23 years down the road with investments that are well past their sell buy date and a contract that may have been good back at the start but completely obsolete 23 years later. Transactional requires you to review it or pay periodically for it to be reviewed. Typically the investments recommended for transactional will be different from those recommended for servicing as the IFA has to take into account the fact there is not likely to be ongoing reviews.

mania112

an IFA should line up all the options you are facing, and help you to understand what they mean.

Then using this knowledge and advice, you, the client, must make a decision.

To make this decision you need to have learnt something from the IFA.

So if the IFA has made things seem more complicated, he's not done his job.

Ultimately though, it's your money/pension - so you need to ensure you've made the right decision

Layo909

Ok thanks for replies.

Looking at post #23 by dunstonh, the IFA has done all of those steps.....all except the last step 'putting in place a solution'. And surely this is the most important step, actually getting the pension up and running. Indeed I last heard from the IFA in May, so doesn't look like he intends to provide a solution either.

dunstonh

Layo909 wrote: »

Ok thanks for replies.

Looking at post #23 by dunstonh, the IFA has done all of those steps.....all except the last step 'putting in place a solution'. And surely this is the most important step, actually getting the pension up and running. Indeed I last heard from the IFA in May, so doesn't look like he intends to provide a solution either.

Back to communication again. It's a two way street. Did you tell him to proceed with the recommendation and put it in place or is he waiting for you?

atush

he probably thinks you are still mulling over your options.

So call him.

gadgetmind

sandsy wrote: »

A pension is likely to be the seocnd most valuable asset you ever own (after your house) - why wouldn't you want to take an interest in it, at least to some extent?

I'm aiming for my "pension" pot (total retirement savings) to be 2x value of my house as otherwise I can't make the numbers work.