Finding an IFA

I’m looking at retiring this year and need to decide what to do with my pensions. I have a smallish DB pension (circa 7-8k) that will start paying at the end of this year and I don’t really need advice on that but I have a SIPP plus a DC pension with my current employer that I will want to put into flexible drawdown at some stage. I used an IFA when I set up my SIPP but didn’t pay for ongoing advice for a couple of reasons and I haven’t contributed to that SIPP since it was set up, and whilst it hasn’t done brilliantly IMO it’s still around 890k. My DC workplace pension is 220k currently. I’m 8 years away from state pension age. 

My workplace pension website says to use Unbiased to find an IFA but there are loads of them in this area so how on earth do you choose one? I don’t really want to pay a % that will end up in 5 figures every year so maybe I’m looking for someone who offers set fees? Or should I be looking to DIY my pension? 

I know that I don’t want an annuity or a lump sum so I think I just need to move it into flexible drawdown selecting ‘suitable’ funds to invest into. I don’t want to draw anything from the pot until tax year 25/26 for tax reasons and drawing down 3% PA will probably work for me. 
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Comments

  • Mark_d
    Mark_d Posts: 2,382 Forumite
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    edited 12 January 2024 at 4:44PM
    Due to the value of your pension schemes I'd recommend taking independent professional advice.  Maybe take a free initial consultation to see whether it would be beneficial for you:

  • Brie
    Brie Posts: 14,273 Ambassador
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    Most IFAs will have a free no obligation one hour session that is done after they have some of your financial info from your scheme(s).  Basically they are a bit of a sales pitch but can give you an idea if you can work with the individual over the coming decades.  

    Another thing to do is to ask friends and work colleagues for recommendations.  If there's someone you know who has vaguely similar circumstances they might be able to point you at someone dependable.  
    I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving boards.  If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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  • dunstonh
    dunstonh Posts: 119,411 Forumite
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    edited 12 January 2024 at 5:01PM

    My workplace pension website says to use Unbiased to find an IFA but there are loads of them in this area so how on earth do you choose one?
    Unbiased is no longer a good place to seek IFAs.  Unbiased turned into a lead generation site and includes FAs.  They recently changed their charges to drive away IFAs and focus on the national and regional salesforces, most of whom are FAs rather than IFAs.

    I don’t really want to pay a % that will end up in 5 figures every year so maybe I’m looking for someone who offers set fees? Or should I be looking to DIY my pension? 
    The choice is to IFA or DIY.   Avoid the rest.    Only you can decide if you can DIY well or not.

    Mark_d said:
    Due to the value of your pension schemes I'd recommend taking independent professional advice.  Maybe take a free initial consultation to see whether it would be beneficial for you:

    They are not IFAs.    Quilter are FAs.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • xylophone
    xylophone Posts: 45,578 Forumite
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    You could try

    https://adviserbook.co.uk/

    Tick "confirmed independent" and other options required when the menu comes up.
  • kjs31
    kjs31 Posts: 218 Forumite
    100 Posts Second Anniversary Name Dropper
    Thanks for the replies. I have had an initial chat with Schroders who obviously want me to invest in their products but I’m concerned about the charges and whether their funds are the right approach. The FA did go through my pensions and savings and ascertained that I shouldn’t run out of money even if I took more from the pot each year than I intend to so I’m really looking for cost effective tracker funds (at a guess). 

    I think the person I saw when I set up my SIPP was actually an FA rather than an IFA as he only suggested 2 funds to invest in. 
  • xylophone
    xylophone Posts: 45,578 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If you are happy to DIY, satisfy yourself that the SIPP you have is optimal for your circumstances - if not. transfer to one which is?

    https://monevator.com/compare-uk-cheapest-online-brokers/

    https://monevator.com/best-global-tracker-funds/

    https://monevator.com/low-cost-index-trackers/
  • JohnWinder
    JohnWinder Posts: 1,862 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    You definitely should be looking to see if you can DIY your pensions. A saving of £6000 per year says it all.
    Have a read of any of these to help decide if can DIY. 
    Tim Hale’s book Smarter Investing might be in your local library, or they’ll get it for you. It’s all you’ll need to decide if you need an advisor. Or something similar for free online: https://ia803405.us.archive.org/23/items/the-bogleheads-guide-to-investing/The Bogleheads' Guide to Investing.pdf
    Or https://rickferri.com/wp-content/uploads/Serious-Money-Straight-Talk.pdf
    Or https://archive.org/details/common-sense-investing
  • kjs31 said:
    I’m looking at retiring this year and need to decide what to do with my pensions. I have a smallish DB pension (circa 7-8k) that will start paying at the end of this year and I don’t really need advice on that but I have a SIPP plus a DC pension with my current employer that I will want to put into flexible drawdown at some stage. I used an IFA when I set up my SIPP but didn’t pay for ongoing advice for a couple of reasons and I haven’t contributed to that SIPP since it was set up, and whilst it hasn’t done brilliantly IMO it’s still around 890k. My DC workplace pension is 220k currently. I’m 8 years away from state pension age. 

    My workplace pension website says to use Unbiased to find an IFA but there are loads of them in this area so how on earth do you choose one? I don’t really want to pay a % that will end up in 5 figures every year so maybe I’m looking for someone who offers set fees? Or should I be looking to DIY my pension? 

    I know that I don’t want an annuity or a lump sum so I think I just need to move it into flexible drawdown selecting ‘suitable’ funds to invest into. I don’t want to draw anything from the pot until tax year 25/26 for tax reasons and drawing down 3% PA will probably work for me. 

    How did you get on in the end?

    I'm looking to get my retirement strategy fine tuned too but need to find an IFA that I can trust for one off advice and who's not pushing investment products or skimming off the top regardless of the quality of their work.

    Shame about Unbiased being so biased!
  • JohnWinder
    JohnWinder Posts: 1,862 Forumite
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    edited 23 April 2024 at 1:37AM
    I've brought enquirers' attention to this service before: https://www.evidenceinvestor.com/find-an-adviser/
    I haven't seen any replies to indicate how useful it was but I did get some blow back from the usual suspects.
    Now, what do I discover? It's at the top of the list of 'how to find an advisor' on the occaminvesting site. And if you've read anything of his you'll have found it bursting with common sense. 
  • wjr4
    wjr4 Posts: 1,299 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I've brought enquirers' attention to this service before: https://www.evidenceinvestor.com/find-an-adviser/
    I haven't seen any replies to indicate how useful it was but I did get some blow back from the usual suspects.
    Now, what do I discover? It's at the top of the list of 'how to find an advisor' on the occaminvesting site. Any if you've read anything of his you'll have found it bursting with common sense. 
    Never heard of it 
    I am an Independent Financial Adviser (IFA). Any posts on here are for information and discussion purposes only and should not be seen as financial advice.
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