Advanced search

Pensions - should you see more than one IFA?

(6 Posts)
watersign76 Thu 06-Sep-12 11:07:45

DH and I want to review our pensions. Have previously had IFA's attached to my work who have advised. I have since left to freelance. They would do again, but we'll find it difficult to meet them. So looking for somebody locally. They all have different fee/commission structures.

Is it wise to see more than one to decide before we choose? Do you go further and ask more than 1 to investigate our pensions and see what they both say? Some have up front fees, which I guess if they do, then if we want to do that, that isn't an issue?

Just feels a bit scary deciding on who as the advice will be so important....

Any thoughts?

jollydiane Thu 06-Sep-12 21:41:44

Hi Watersign

Good for you for thinking about pensions. Money saving expert has some really good tips. These are the sort of questions you should ask yourself

1. Do I have any debts I need to clear before saving for a pension.
2. Have I got a sufficient safety net if out of work or the car needs to be replaced etc. I say this as once money is in a pension it is locked up until retirement.
3. Have a good look at ISA first. There are cash ISA and stocks and shares ISA you can put about £11,000 into an ISA each tax year. This gives you a lot of flexibility in the future.
4. I know that you can get tax relief on the pension contribution but don't forget that they tax you when you take your income at retirement. An ISA is always tax fee.
5. What sort of risk are you willing to take?

I'm no expert in all this but if you are well informed in the first place you will usually make good choices and have the ability to ask sensible questions to any IFA.

Notmadeofrib Mon 10-Sep-12 18:05:05

Just be aware: Pensions are protected from creditors, ISA's are not (unless you defraud creditors with your pension contributions).

ISA's are created using taxed money, pensions are taxed, but only after a personal allowance has been taken tax free and often at a lower tax level than when accrued. They also give you 25% tax free cash (for now at least). ISA’s do however afford greater flexibility and it is why we always talk about both.

In answer to your original question: Yes definitely interview an IFA. This should be a relationship you maintain for a number of years you should feel confident in them and comfortable.

You won't find any decent IFA's that will do the work and then if you like the answer, decide to pay the bill... you will however get a chance to discuss the issue of pensions, savings and the strategy they employ when selecting and managing such products. On that basis paying a fee may be a better option, it may seem like a lot, but you won't be paying 'hidden' commission.

Alad Wed 12-Dec-12 19:54:29

Beware. Ifas re trying to write all their business before 2013. After that they won't be able to take trail commission. Here's what I read about it and how i know!

Notmadeofrib Thu 13-Dec-12 19:03:33

Unfortunately Alad you and the site have not actually understood the RDR!

Alad Fri 14-Dec-12 01:00:24

Can you explain for all of us who don't understand it then?

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now