Any tips for selecting an IFA for pension retirement

EverythingCounts

I’m looking to book an appointment with an IFA to get advice on taking my pension and putting a best plan together for retirement finances, so best way to use my pension, ISAs and other savings.

I’ve read through the advice on Moneyhelper, looked at the FCA register and looked back at old threads on the forum, but still feel unsure on what metrics to decide on which IFA to use. I presume now days they don’t have to be local to me as things can be done over the phone or video calls.

I’m aware that they need to be FCA registered and be able to give the type of advice I need, but is it as simple as just finding someone registered on the FCA site, are there ways to get more info or reviews?

I’ve read mixed thoughts about unbiased.co.uk saying the some decent IFAs don’t use it, can’t remember the reason now.

Any tips or advice on finding an IFA for pension and retirement planning?

tacpot12

A personal recommendation from someone who has used the IFA for many years is the best way to find a good IFA. In the absence of this, you may just have to take pot luck, but you should ask them about their charges and why they think you should use them. You also need to be able to get on with them and their approach. Finding somone local so you can visit them easily may be worthwhile if you want to have that sort of relationship with them.

Albermarle

https://forums.moneysavingexpert.com/discussion/6661533/any-tips-for-selecting-an-ifa-for-pension-retirement

From a technical point of view, all IFAs will be able to handle what you require. This type of advice is their bread and butter. You do not mention the level of funds you are talking about. Many IFAs are pretty busy and may well not be interested in every potential client that turns up at the door, especially if the funds are not that high and/or they seem like someone who might be hard to deal with ( not saying you would be of course 😀).

Most local IFAs seem to band together in a small group/partnership to share admin/office costs etc. and most towns should have at least one of these.

It is difficult to really compare one with another. There are no comparison sites, Trust pilot reveiws etc.

If no 'word of mouth' recommendations ( although even with these, sometimes it turns out they are not IFAs anyway) then at least you can normally have a free 30/60minute 'get to know you' chat to see how you get along.

Ibrahim5

No need for an IFA. Just post any questions on here and experts like myself will be here to help. Saves you thousands of £.

dunstonh

I’m aware that they need to be FCA registered and be able to give the type of advice I need, but is it as simple as just finding someone registered on the FCA site, are there ways to get more info or reviews?

The majority of IFAs are small localised firms of 1-5 advisers with about as much internet coverage as your local baker or butcher.

I’ve read mixed thoughts about unbiased.co.uk saying the some decent IFAs don’t use it, can’t remember the reason now.

It is no longer an IFA directory. It accepts FAs and Salesforce. Indeed, its pricing has effectively priced out all the small local IFA firms, and instead it promotes the nationals and regionals. (if a firm wanted to be listed in 50 locations over three counties, it would cost around £3272pm plus VAT. If it was cut down to 20 carefully targeted areas across those counties, that is still around £1420pm plus VAT).

It used to an IFA directory and probably IFA paid to be on there. Unbiased decided to change its business model and, rather than getting many smaller amounts, went for fewer larger ones and effectively became a front end to push people towards the nationals and salesforces.

Most of the nationals have every location covered, even if there isn't an adviser anywhere near that area.

In addition, Unbiased moved to a lead generation basis if you use the big links, but you can still use it as a directory if you look at the small link:

Don't click the yellow "continue" button, as that method only shows you those firms that pay for leads. Instead, use the rather small "browse adviser" directory instead.

Once on that page, input the advice area, your investible assets and postcode. However, this will still only show the paying firms. But if you scroll to near the bottom:

You untick that box, and all the small independents will now appear. Despite what is says, ti's not that those advisers are not available for contact. It is that they haven't paid anything to be highlighted in that list.

Ignore the clients helped number, as that only applies to those who have been foolish enough to follow the lead generation method and have been directed to the expensive wealth management nationals (and note the context. A national firm with over 3000 locations with only 10k clients helped is actually a very small ratio). Those who don't pay for the lead generation leads don't get a client helped count). Do not click on the "start enquiry" button as those are the paying ones (unless you want that one). Look at the list, and contact your chosen firm directly.

In my area, every single one of the "paid" listings is either a national or large regional one or has been bought by a larger company, but has yet to fully transition to that larger one. Not one of the "independent" IFAs has a paid entry.

LHW99

https://forums.moneysavingexpert.com/discussion/comment/81939762#Comment_81939762

OP this poster has a rather fixed point of view. While there are many knowledgable people here, generally people are offering suggestions and their own take on things. If you keep reading the threads, you will certainly pick up useful pointers, and some idea of who is speaking from expert knowledge.

Using an IFA will cost money, just as using any professional would do. However if you are worried about how to get started, it isn't a bad thing to consider. One caveat is that you do tend to need some level of existing investable funds, otherwise it would not be economical either for you or the IFA. Any firm you speak to will be able to say what their limits are - some will be higher, some lower.

EverythingCounts

https://forums.moneysavingexpert.com/discussion/comment/81939767#Comment_81939767

Thank you for taking the time to write and explain that, very useful.

I’ve just followed your steps on unbiased and browsed the list, although a firm I was looking to use are not listed. I’m assuming not everyone would be listed on unbiased, just those who have registered with them?

EverythingCounts

https://forums.moneysavingexpert.com/discussion/comment/81939750#Comment_81939750

I did consider this, will some IFAs be interested in my business as it might not be enough value for them. Hopefully my pension pot should be in the 500k to 600k region when I get to it, then there should be 100k savings and ISAs along with that.

EverythingCounts

https://forums.moneysavingexpert.com/discussion/comment/81939791#Comment_81939791

That’s the dilemma, I know I will have to pay fees and charges with an IFA but you hope with their expert knowledge and connections they can pay for themselves with what they put together. I basically need to determine the best option for taking my pension alongside the best use of my 100k savings and ISAs, the most tax efficient and sustainable plan. It does feel like it’s something I could do myself with plenty of research and planning, but it’s that worry of missing something, or simply not knowing there was a better option, or worse making a costly mistake, I guess that’s what you’re paying them for, that reassurance.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/81939883#Comment_81939883

Once upon a time, every IFA would have been on unbiased as it was the place to be. I suspect most listings on there with smaller firms are from those days. A newer firm may not have bothered to create an entry.

Linton

https://forums.moneysavingexpert.com/discussion/comment/81939916#Comment_81939916

Also if you make an inappropriate choice of strategy or funds given your circumstances, willingness to accept risk etc, you bear the cost. If your IFA does so you can claim compensation.