Finding a pension advisor, not salesperson

SMcGill

I have two public sector pensions (a mixture of final salary and CARE) and a private one. I’ve also got some assets and savings which I hope are enough to let me retire early. So there are a fair few moving parts and I’d like some expert help in making the most of them, before I think about anything new. Am I being too narrow minded about that?

And who should I be looking for, a retirement planner, pension adviser, financial adviser? The only professional I’ve spoken to simply suggested I put all my cash assets into a new bond and said nothing about pension transfers, AVCs etc. so maybe I’m not asking the right kind of adviser. Or the right kind of question!?

Pension_Geek

Lots of things required, but to start;

What age are you?

When would you like to retire?

Any debts?

What are the assets specifically? Property?

Have you obtained a state pension forecast?

wjr4

You need to look for an independent financial adviser.

MEM62

In short;

FA = Salesman
IFA = Financial advisor

OK, that may be a little simplistic but it is generally the way it works. An FA can only discuss products from a narrow range of offerings whereas an IFA should be able to advise you based on what is available in the wider market.

dunstonh

An IFA only operates on fee basis. You pay the fee. You employ the IFA. The IFA gets no remuneration from product providers. So, if you want to employ an IFA to talk about a certain area, then you are paying the IFA to do that. Perhaps avoid those tagged "wealth management" as they do tend to have the business model that focuses on growing investments under management.

If you are looking at the potential of transferring a Defined Benefit pension then you need a pension transfer specialist. This is a regulatory permission that only around 1 in 10 advisers hold.

If you dont want to delve into defined benefit transfers then that is not a requirement.

SMcGill

Thanks!

I am 55 and hoping to retire at 57. No debts. I did receive a state pension forecast and I think it is standard but thanks for reminding me so I max this if necessary and possible.

My assets are £150k in various savings and a £150k property that I plan to continue renting out until I need the capital (no mortgage on this).

My pensions all together fall about £10k a year short of what I’d like so some of the above will be needed to top this up. I expect to downsize by the time I’m 75 to keep up my income, so anything I can do now to increase my pension would be a help.

SMcGill

Thanks that’s really useful. I didn’t know about the DB specialism and I definitely want advice on consolidating my 2 public sector pension pots.

AlanP_2

SMcGill wrote: »

Thanks that’s really useful. I didn’t know about the DB specialism and I definitely want advice on consolidating my 2 public sector pension pots.

First question -Why?


Even if you decide, for good reasons it makes sense, then you may still be limited as many PS schemes do not allow transferring out.

If you provide a few more details some of the scheme specialists on here may be able to comment.

Silvertabby

SMcGill wrote: »

Thanks that’s really useful. I didn’t know about the DB specialism and I definitely want advice on consolidating my 2 public sector pension pots.

You'll only be able to transfer your public sector pension if it is LGPS. Other public sector schemes are unfunded, and cannot be transferred out to non DB schemes.

However, being able to transfer a LGPS pension isn't the same as should.

SMcGill

Okay. I have an old USS pension that’s 1in80 part final salary and part CARE and the current one in the public transport sector is CARE only but with a more generous 1in60. I also have a small private pension with Standard Life which has two different retirement ages of 60 and 65. Does that provide a bit more useful info?

LHW99

Also some DB pensions let you give up part or all of the lump sum in exchange for more income.
If possible, it may or may not be worth doing depending on the numbers.