Personal pension - financial adviser necessary?

solidpro

Hi Everyone

Many years ago, I setup a personal retirement account with Scottish widows through a financial adviser. I've been adding to the account each year since but the FA has essentially dropped off the face of the earth.

Do I really need a financial adviser? My annual statement shows they're taking £180.46 per year - can I eject them?

I've been given the details of a recommended alternative FA, but I'm really not sure what they're needed for in the case of my pension.

Scottish widows just divide up my 'pot' into 4 types of investment, ranging from high risk, high return and low risk, low return. Seems a reasonable idea to me...

cheers

bostonerimus

That depends on you. If you have a little bit of knowledge and the desire you can easily DIY. IMO people go to financial advisors far too often in the UK and waste a lot of money.

dunstonh

Do I really need a financial adviser

its like any job/task you need completing. You can either DIY or use someone. If you DIY well, then you may save money (sometimes lots). If you DIY badly, if could be a costly mistake.

Do I really need a financial adviser? My annual statement shows they're taking £180.46 per year - can I eject them?

If they are being paid, then they have not dropped off the face of the earth. If this plan was put in place before January 2013, then they are allowed to be paid without providing an ongoing service. If it was arranged after January 2013, then they should have been providing you an ongoing service for that money. If they haven't you should ask for a refund.

Scottish widows just divide up my 'pot' into 4 types of investment, ranging from high risk, high return and low risk, low return. Seems a reasonable idea to me...

most SW plans are now naff and their investments leave a lot to be desired. It may well match your risk profile but it proably wont be very good.

IMO people go to financial advisors far too often in the UK and waste a lot of money.

However, plenty of people also DIY their investments and make a right pigs ear of it. DIY only works well when its done well.

bostonerimus

dunstonh wrote: »

However, plenty of people also DIY their investments and make a right pigs ear of it. DIY only works well when its done well.

Agreed, but there are a lot of vested interests that try to make investing more difficult and obscure than it needs to be. I'd like to see more emphasis on demystifying investing and platforms that provide good tools for people to invest sensibly and inexpensively.

solidpro

most SW plans are now naff and their investments leave a lot to be desired. It may well match your risk profile but it proably wont be very good.

What's the risk profile of an average SW retirement account holder?

Can you move an entire pension account to another company?

Thanks

dunstonh

What's the risk profile of an average SW retirement account holder?

Who cares? It makes no difference to the decision making for an individual.

However, risk profiling should take into account knowledge and understanding and someone considering SW multi-asset funds probably has a low knowledge and understanding. So, would probably be lower down the scale.

Can you move an entire pension account to another company?

yes