finding an IFA for Pensions health check - info already consolidated - cost ?

JohnWinder

Some useful digging gone on there. Not sure what to make of it.

I don't know whether the 'name and contact details' issue is a privacy concern or simply a description of the process, but an email alias is rarely a bad idea if you're worried about systems being hacked, data sold or stolen or just getting good old junk mail.

It's commonly advised here to tick 'independent' when we send folk to the Unbiased advisor gateway. Might it be sufficient to advise uses of Powell's service to specify they want an 'independent advisor'?

Second Financial Planning might be an alias for someone else who sells their service, have a website without security certification, call themselves planners but they can only give guidance, and ask for donations with a button that doesn't work and have a four year old copyright, but they/it is not on the pathway we're discussing for finding an advisor using this service: you give your name, say what you want, they send you to someone unrelated, the end. 

Malthusian

JohnWinder said:

It's commonly advised here to tick 'independent' when we send folk to the Unbiased advisor gateway. Might it be sufficient to advise uses of Powell's service to specify they want an 'independent advisor'?

Or just avoid dodgy lead generators entirely and use a reputable and transparent adviser directory that lets you tick a box to search for "independent". (You will still have to double-check that the adviser is independent on their own website, as certain large upmarket salesforces are notorious for holding themselves out as independent when they are not.)

Second Financial Planning might be an alias for someone else who sells their service, have a website without security certification, call themselves planners but they can only give guidance, and ask for donations with a button that doesn't work and have a four year old copyright, but they/it is not on the pathway we're discussing for finding an advisor using this service: 

Well that's alright then. Except they are on the pathway. They are the same person. 

Although the web page is titled "Find an adviser", the page repeatedly refers to putting you in contact with a planner, and Second Financial Planning call themselves "planners" (although they can't help you plan anything that involves regulated financial products). "We offer to connect readers in the UK who don’t have an up-to-date plan with a suitable financial planner... All of the planners we recommend... This will allow us to find the most suitable financial planner for you."

On the same page it declares that Second Life Financial Planning (i.e. themselves) may receive a small introduction fee for referring you to... someone who provides the same service they offer themselves?

It is as clear as mud, and gives off a bad smell to anyone with a vague idea of the significance of the words "financial advice". This distinction will however be lost on the majority of people who don't appreciate the significance of "regulated financial advice" and think that financial advice is what you get from bank call centre staff, PensionWise et al.

JohnWinder

'Or just avoid dodgy lead generators entirely and use a reputable and transparent adviser directory that lets you tick a box to search for "independent"'

Different services are not comparable in only those respects. Powell's offer users convenience that Unbiased doesn't and offers an evidence based approach to investing as the first option for clients. Those count for something when deciding whether we should or should not deliberately hide a service from those asking what services are there in this area. How much they count depends on one's values and beliefs I suppose; less if you're not a fan of evidence based investing.

'. Except they are on the pathway. They are the same person. '

That doesn't do it for me. People can wear two hats. If Powell owned the Toyota service centre on the High street I wouldn't assume car fixing was part of finding me an advisor, although both could use the same computers and some clerical staff could work in both roles.

'"Find an adviser", the page repeatedly refers to putting you in contact with a planner, and Second Financial Planning call themselves "planners"'

I don't think that necessarily means SFP would become involved, but it does allow that it might. I think that requesting 'IFA only, please' keeps SFP at a safe distance.

Second Life Financial Planning (i.e. themselves) may receive a small introduction fee for referring you to... someone who provides the same service they offer themselves?

It's not 'may' it's 'will', which I suppose is 'may' if someone doesn't pay their bill. Indeed, SFP gets paid for the find an adviser service. It's involved, whether that makes it relevant to the process of finding the advisor I doubt as the process would work without concern even if the Toyota service centre was paid.

Looking into the background to this, Powell has been on a mission for more than a decade to see ordinary folk get a better deal from the financial services industry, a better deal off a low base. Part of his activities is the sensibleinvesting.tv website which documents in video some of his concerns and solutions; it doesn't stand out as lunatic fringe thinking. Another part is helping us find a suitable adviser, and I sense the same motivation; the execution of it doesn't seem to me to condemn it. 

dunstonh

Powell's offer users convenience that Unbiased doesn't and offers an evidence based approach to investing as the first option for clients.

All IFAs offer the evidence based approach.   Either by choice or if you ask them.    If a client gives an instruction on investment style, the IFA follows that.

Those count for something when deciding whether we should or should not deliberately hide a service from those asking what services are there in this area.

But is it a service that is really aimed at promoting their own unregulated offering?

I don't think that necessarily means SFP would become involved, but it does allow that it might. I think that requesting 'IFA only, please' keeps SFP at a safe distance.

How do you know if they are referring to IFAs and not a salesforce?  At no point on their site does it say that they refer to IFAs.   The site says FAs of financial planners.      It muddies the waters with its financial planners classification.

Looking into the background to this, Powell has been on a mission for more than a decade to see ordinary folk get a better deal from the financial services industry, a better deal off a low base. Part of his activities is the sensibleinvesting.tv website which documents in video some of his concerns and solutions; it doesn't stand out as lunatic fringe thinking. Another part is helping us find a suitable adviser, and I sense the same motivation; the execution of it doesn't seem to me to condemn it. 

Yet nobody in the UK has heard of him, like most bloggers. 

It boils down to the fact that you are on a different continent promoting a blogger who offers an unregulated commercial service that pays lip service to referring to an FA (not an IFA) as a means to sell their own service.

flapjack22

Sorry have not posted, have been unwell and then flat out with work.

I have re-read the posts tonight have tried to reply here individually with what I understand from the kind forum replies - thank you !, sorry in advance if I have misunderstood anything.

@gm0

"They (like all advisers) are selling you a transfer or consolidation onto a new arrangement that is "suitable" to financial situation and risk appetite. it doesn't have to perform better (no promises there), or always be cheaper than the existing one or anything like that.  Potential for improved performance justifies increased fees.  "

So if I am reading this correctly, IFA/FA quite righty are interested in selling a new product/arrangment moreso, than reviewing/improving existing portfolio/pensions/situation? - forgive me if I am wrong?

Again, surely someone can't be selling something/recommending something if that statistically/whatever isn't likely to perform any better than what I've got already?

I also appreciate and respect all pensions from all providers can go up and down etc.

@LHW99

Risk = middle of the road -

Depending on how close you are to wanting to draw, there are also things like how flexible the provider is - are you restricted to an annuity or taking the lot in one go.

Wishing to draw from 1 pension - Britannic pension £12,000 which I can do as over 55, but wondering if might be better to draw down from other pensions?
I

@Beddie

Here are the pensions, I want to draw out £10,000 in one go (need a new car and holiday and don't have any savings and dont want a loan), I think no matter how I draw down I will still have to pay tax on it ?

Pension 1
Brittanic Assurance now Phoenix Life £11,500 - personal pension setup by myself over 30 years ago cant remember anything more.
Product name
Personal  pension plan
Product type
Britannic with profits fund

Pension 2
Aegeon £44,000 Old job Company pension (formely Black Rock)
Product name
plan section 32a
Product type
combined workplace pension

Pension 3
Aegeon £24,000 Old job Company pension
Product name
Pension plan
Product type
combined workplace pension

Pension 4

Standard Life £5K old job company pension
Product name
Flexible Retirement Plan - this might be moving to Phoenix pensions?
Product type
money purchased invested in funds.

Pension 5

Creative Benefits .co.uk £2,500 old job company pension
Product name
Pension portfolio 3
Product type
money purchased invested in funds.

Pension 6
Fidelity £5k old job company pension
Product name/type
Default Lifestyle Strategy  = reduces risks near retirement.

Pension 7
Fidelity £1k old job company pension
Product name/type
Default Lifestyle Strategy  = reduces risks near retirement.

Pension 8
Nest £2K old job company pension
Product type/name
Nest Retirement Date Fund

Pension 9 £4K Current active employer pension  paying into
Standard Life -
Product type
Group Flexible Retirement plan

This where I have no clue as to which one is better than the other.. .


@Albermarie

I understand Cash Isa's as they are simple and I understand is they are good for a regular save, and also there are other types of savings accounts which might be better, but that's not the problem here.

A defined contribution pension and defined Benefit I have just googled these meanings - have no knowledge of them.

I would presume defined contribution would mean employer is matching what you are paying into without googling?

MallyGirl

Defined contribution means you (and possibly your employer) put a defined amount into a pot. When you retire you use the pot to fund you.

defined benefit- you may or may not contribute something out of your salary. It may go into a pot but that is irrelevant. When you retire what you get out as income is not based on the value of any pot. Instead it is based on defined rules eg you might get your final salary x number of years service x 1/80th

LHW99

Pension 1

Brittanic Assurance now Phoenix Life £11,500 - personal pension setup by myself over 30 years ago cant remember anything more.

Product name

Personal  pension plan

Product type

Britannic with profits fund

With a "With Profits" fund, the aim is to smooth out the good and bad investment years. You always have both over a long period, unless you stick with cash. But then you are reliant on interest rates being better than inflation which is rarely the case.

Because of that these type of policies may impose what's called a "market value adjustment" (MVA) on funds being withdrawn early, to make sure that those who remain in the fund are protected (from reduction in overall fund vlue). There is usually a specific date when it is guaranteed no MVA will be imposed. Other times you have to ask the company to find out.

cfw1994

I suspect you may be in luck with your desire to get 10k out 🤷‍♂️

For personal pensions, up to three pots worth up to £10,000 each can also be cashed in under the ‘small pots’ rules.

For details, please do some research - https://www.litrg.org.uk/pensions/pension-withdrawals/small-pensions looks quite thorough.
You will pay some tax on it, depending on what your allowances allow.

Clearly if you do draw that, those funds now gone: be aware of what you are doing 👀
Maybe others will chip in on this.

xylophone

Overall, your retirement provision is very modest but it seems that you  have a need for money now. 
 
Have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

What is shown at Estimate to 5/4/23 (4)?


Pension 1
Brittanic Assurance now Phoenix Life £11,500 - personal pension setup by myself over 30 years ago cant remember anything more.
Product name
Personal  pension plan
Product type
Britannic with profits fund

Check with the provider on the question of MVA as raised by previous poster.



Pension 2
Aegeon £44,000 Old job Company pension (formely Black Rock)
Product name
plan section 32a
Product type
combined workplace pension

This is a particular type of policy and may have "safeguarded benefits". Check with Aegon.

If so, transferring out requires specialised (expensive) advice.

https://www.gov.uk/government/publications/pension-benefits-with-a-guarantee-and-the-advice-requirement/pension-benefits-with-a-guarantee-and-the-advice-requirement

One strategy might be to open a SIPP with say Hargreaves Lansdown, request  a transfer in  of  pensions 3 -8 inclusive 

 (a value of £39,500)  - you could then take a tax free Pension Commencement Lump Sum only of 25% of the  money which would  

give you (more or less) the sum you say you need  and avoid triggering the Money Purchase Annual Allowance. 

https://www.moneyhelper.org.uk/en/pensions-and-retirement/tax-and-pensions/money-purchase-annual-allowance-mpaa

You would then need to consider how to invest the balance - a global mixed asset fund might be a possibility.

As a starting point and before taking any action at all, arrange an appointment with Pension Wise.

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise/book-a-free-pension-wise-appointment

With regard to paid for advice, you could try

https://adviserbook.co.uk/

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

Albermarle

So if I am reading this correctly, IFA/FA quite righty are interested in selling a new product/arrangment moreso, than reviewing/improving existing portfolio/pensions/situation? - forgive me if I am wrong?

Again, surely someone can't be selling something/recommending something if that statistically/whatever isn't likely to perform any better than what I've got already?

I also appreciate and respect all pensions from all providers can go up and down etc.

On the first point. IFA's will have quite a lot of clients on their books. If they all were with different providers, some running ancient software etc. then the admin would be impossible. So an IFA will have a couple of favourite pension providers/platforms that they mainly use, with modern software, good customer service and they are familiar with.
So normally they like to transfer new clients onto one of these platforms. Also some platforms are designed for retail clients ( the public) and others are designed more for professional use.
It probably also helps to keep, and manage clients easier.
It is possible to take IFA advice and continue to operate your portfolio/provider yourself, based on that advice ( or ignoring it even ) , but it is less common.

You answered your second question largely with your final sentence. However the main point of misunderstanding in this situation is the word 'better' .
For one client with good nerves 'better' can mean good returns in the long term, despite a lot of short and medium term volatility. For a more cautious client, less volatility is 'better' even if it means less growth.
For an older person, long retired 'better' may be just enough growth to keep up with inflation etc etc.
The IFA's job is to set something up that is appropriate for that particular client.