Help at hand on pensions
PLANNING your retirement is one of the most important financial tasks of all and mistakes can be costly, so you need to get it right.
The Covid-19 crisis has made planning even more complicated, so seek guidance if you are stuck.
Here’s where to get help, whether building your pension, approaching retirement, or considering drawdown.
PENSION PROVIDER
Billy Burrows, director at Better
Retirement, said if you want basic support, call your pension provider: “Staff should be knowledgeable about their own products, but will not normally discuss other providers.”
Most can only sell their own pension plans, but you should really shop around: “Support is free but you pay for it indirectly through product fees and charges.”
SEEK GUIDANCE
If you are aged 50 or over, you can get free, impartial guidance from the government-funded PensionWise service. Burrows said: “Advisers are knowledgeable but cannot tell you the best course of action.”Visit Pension Wise.gov.uk or call 0800 138 3944.
Laura Laidlaw, head of customer communications at insurer Standard Life, said the government-funded Money Advice Service provides useful and impartial advice at MoneyAdviceService.org.uk. You can talk to its advisers on 0800 138 7777, although wait times are lengthy.
Laidlaw said CitizensAdvice.org.uk has information on pensions and debt. Local offices are currently closed for face-to-face advice, but telephone lines may be open, so try yours.
The Pensions Advisory Service has web chats and an online enquiry form at PensionsAdvisoryService.org.uk, or call 0800 011 3797.
Laidlaw also said that online calculators may help: “The website RetirementLivingStandards.org.uk shows how much you need to achieve different standards of living.”
These services can only give you general guidance. If you need more, you will have to pay.
FINANCIAL ADVICE
For an in-depth review and personalised advice, contact an independent financial adviser.
Burrows said they can review all aspects of managing your money, not just your pension: “Advisers are trained to high standards set by the Financial Conduct Authority, and will be held to account if they give the wrong advice.”
Most will offer a free initial appointment, but charge thereafter.
Seek personal recommendations or search for advisers at Unbiased.co.uk, the Personal Finance Society’s website ThePFS.org.uk/yourmoney, or the Money Advice Service website.
Laidlaw said financial advice typically costs between £150 and £250 an hour: “A good adviser will give personal recommendations.”
New service Emergency Financial Advice offers free, no-obligation telephone advice to over-50s who are worried about pensions during the Covid-19 crisis.You can then pay if you need more complex advice.Visit EmergencyFinancial Advice.org.