Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • Pittingdon
    • By Pittingdon 12th Jul 17, 11:08 AM
    • 3Posts
    • 1Thanks
    Too early for a IFA?
    • #1
    • 12th Jul 17, 11:08 AM
    Too early for a IFA? 12th Jul 17 at 11:08 AM
    I have been reading this pension forum for several months and it is quite astonishing how much my understanding of pensions has increased. The generosity of posters in freely giving advice to others is a wonderful thing.

    I am 58 and have a view to retire in four or five years. One thought that keeps nagging at me - should I take ongoing advice from an IFA now, through to retirement and beyond? The alternative is to wait until, say, one year before retirement.

    I have a DB pension worth around 13k pa that, I imagine, I don't require much advice about and three smaller private pensions with a combined value of around 120k. My State Pension forecast is 195 pw.

    I am quite happy to speak to an IFA now, but do most people wait until nearer retirement?
Page 1
    • atush
    • By atush 12th Jul 17, 11:19 AM
    • 16,690 Posts
    • 10,398 Thanks
    • #2
    • 12th Jul 17, 11:19 AM
    • #2
    • 12th Jul 17, 11:19 AM
    With a pot of 120K it might be a good idea to see an IFA, for restructuring perhaps.

    4 years can fly by
    • Linton
    • By Linton 12th Jul 17, 11:36 AM
    • 9,378 Posts
    • 9,509 Thanks
    • #3
    • 12th Jul 17, 11:36 AM
    • #3
    • 12th Jul 17, 11:36 AM
    Before you see an IFA you need to have a clear ideas on what you want...

    1) When you want to retire
    2) How much income you need to provide your desired standard of living.
    3) Will you need to take your DB pension early? If so what is the likely reduction in payment.
    4) Provision for dependents

    The IFA could help determine whether the 120K plus any other significant savings/investments is sufficient and how best to use it. If you feel you have the experience/skills to do this yourself then dont use an IFA.

    I think you should start the process now, or perhaps should have started it a few years ago. You dont want to leave it till a few months before you retire to discover you cant actually afford to.
    • bostonerimus
    • By bostonerimus 12th Jul 17, 1:12 PM
    • 1,818 Posts
    • 1,167 Thanks
    • #4
    • 12th Jul 17, 1:12 PM
    • #4
    • 12th Jul 17, 1:12 PM
    The DB pension is great to have, no need for an IFA for that, just take the regular pension cheque and enjoy along with your state pension. Those two will produce you a nice guaranteed income floor. I suggest you look at your expenses and see how much retirement income you'll need and when it comes online so that you have enough income at the right time.

    Next look at your other pensions and see if it's worth consolidating them. If the expenses and fund choices are reasonable and you can do drawdown you could leave them alone. If you are uncertain about the consolidation you might get some one time advice from an IFA, but I would not pay for ongoing advice. With your guaranteed income floor you might consider a fairly heavy equity allocation in your DC pensions and just drawdown say 3% a year if you need it.
    Last edited by bostonerimus; 12-07-2017 at 1:14 PM.
    Misanthrope in search of similar for mutual loathing
    • LHW99
    • By LHW99 12th Jul 17, 1:43 PM
    • 1,280 Posts
    • 1,179 Thanks
    • #5
    • 12th Jul 17, 1:43 PM
    • #5
    • 12th Jul 17, 1:43 PM
    We did that about 3 years ago, by paying an IFA for time to look at what we had, make sone suggestions and talk us through the options.

    I have to say we didn't then go with his ideas of what to do, but I did feel we got useful information on various tax areas, income projections etc.

    We are still working, and probably will for another 3-5 years, although both in touching distance of SPA now.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

435Posts Today

4,557Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line?

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin