pension financial advisor!

busiscoming2

Hi My husband pays into two pensions and has a frozen one, we do not understand anything about pensions - Have decided we need to sort them out and assume it would be best to use a financial advisor to do this, but I am very untrusting of 'financial' people in case they are not telling us the truth about what is really the best options! Can anyone tell me what I should look for or ask a potential advisor to weed out any baddies!
Thanks

dunstonh

Have decided we need to sort them out and assume it would be best to use a financial advisor to do this, but I am very untrusting of 'financial' people in case they are not telling us the truth about what is really the best options!

I would answer but I could be telling lies.

Andy_L

Whilst as a semi-informed amateur, hiding behind a 1st name only ID, I am a paragon of truth & accuracy.;)

jamesd

Well, first start by asking some questions here, then you'll have some idea of reaosnable answers and it'll be easier to give you some idea of what to expect.

wotsthat

Hi My husband pays into two pensions and has a frozen one, we do not understand anything about pensions

If you don't know anything about pensions why have you decided it's a good idea to have three of them on the go?

My suggestion would be to look through some of the posts on here and give yourself some background information and then try and build on that. I think it's important that people should know as much as possible before seeing a financial adviser - you will then be qualified to ask them questions. Probably the most important questions to ask are 'why are you suggesting that?' or 'why do you think that's a good idea?'

EdInvestor

Step one is to tell us a bit about the three existing pensions.By the time you've read our comments on what you say,I guarantee you'll know a whole lot more about pensions than you do now.

clairehi

Problem is that by the time you know enough about it to be sure your guy is doing a good job, you may as well do it yourself....

dunstonh

clairehi wrote:

Problem is that by the time you know enough about it to be sure your guy is doing a good job, you may as well do it yourself....

By the time you know enough you have missed out on years of investment.

clairehi

Depends how quick a learner you are I guess

dunstonh

Depends on whether you want to learn it properly I guess.

Curious_Moose

Ok, quick lesson..

There are broadly 2 types of pension.

1) Defined Contribution (or Money Purchase). You, and maybe your employer, pay contributions that are invested in your own "pot" of money, just like any savings account (with a few tax differences). The pension (and tax free cash) you receive, depends on how well the money has been invested (and also other factors like retirement age and cost of purchasing the pension at retirement).

2) Defined Benefit (or Final Salary). You receive a pension related to your salary and service with the company.

Each have pros and cons. Do you know which is which with your 3 pension arrangements?

If you have a little more knowledge before you see a financial advisor, you will get more value out of him.