Finding an IFA

kjs31

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. 

Mark_d

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:

https://www.quiltercheviot.com/financial-planning/financial-planning-services/retirement/

Brie

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.  

dunstonh

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:

https://www.quiltercheviot.com/financial-planning/financial-planning-services/retirement/

They are not IFAs.    Quilter are FAs.

xylophone

You could try

https://adviserbook.co.uk/

Tick "confirmed independent" and other options required when the menu comes up.

kjs31

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

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

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

richard686

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

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

JohnWinder said:

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