Financial advisors and pensions

Pennieswise

Hi all, I hope to move a very old, not well performing pension policy to another, better performing one. It seems that to pick a better policy I must go through a pensions advisor and pay them lots of money even if the policies they recommend are not very good products. And I have to pay for this advice even if it is not very good, and how would I know anyway? I have looked at websites such as vouchedfor, which although they include reviews is still like sticking a pin in the phone book blindfolded. Is there any way to easily compare pension products without a financial adviser? Is there any way out of this zero sum dilemma? Any advice welcome. Thank you.

xylophone

Hi all, I hope to move a very old, not well performing pension policy to another, better performing one

Does it have a Guaranteed Annuity Rate?

Or is it a S32 policy with GMP?

tacpot12

Basically, No, there is no way out of this dilemma.

As you already know that the new products you will be offered are no good, you don't need to pay for the advice. Just stick with your poor performing pension.


But clearly you suspect that their might be a better product out there, but you are having trouble identifying it. If so, then a good Independent Financial Advisor should be able to help you find that product. But they will not do so for free. You need to accept that you need to pay for advice to identify a product that meets your need. Be a good customer.

Bear in mind that no-one can guarantee the future performance of an investment product.

So what makes a good product, if the investment performance cannot be guaranteed? My list would include;
- simple, transparent and low charges
- zero/minimal exit fees
- online management of the investment portfolio
- access to investments in a wide range of asset classes and in all geographies

You also need to think about how the pension will be managed. You need to reflect on whether your current policy has not performed well because you have not managed it well.

zagfles

You don't have to pay for advice unless there are guarantees associated with the old pension (eg guaranteed annuity rate etc).

Pennieswise

I am pretty sure there is no GAR, but it is ‘with profits’.

xylophone

If there are no safeguarded benefits

http://adviser.royallondon.com/technical-central/pensions/transfers/safeguarded-benefits/

then there is no obligation to take advice.

Is the case that you want to switch to a different arrangement with your current /another provider who will not deal with a transfer on a DIY basis?