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The ability for customers to gain advice from a qualified independent financial adviser is falling  

On January 1st 2006, the UK had 105,710 regulated individuals calling themselves Independent Financial Advisers, able to advise on pensions and investments.
 
Ten years later on and after a huge change to the way Independent Financial Advisers area allowed to advise customers, there are now only 29,144 Independent Financial Advisers who hold the relevant level 4 qualification.

 

Using Independent Financial Advisers

In 2015 “Pension Freedoms” were introduced by the Government, to allow people to be able to take their pension savings any way they wanted to.  However, they placed safeguards to ensure people had taken advice so they were not loosing valuable benefits from pension savings, such as guaranteed income, guaranteed increases in income each year, or valuable spouse’s benefits on your death.  With the new freedoms came the need for advice, as getting things wrong at retirement would have a negative on a retiree for the rest of their lives.
 

Mark Jones – Financial Planner at Assured Wealth and Estate Planning Limited said, “Those people who need to transfer pensions, will need to speak to a highly qualified pension transfer specialist.  However, people with money purchase schemes, even if there isn’t much money in their pots, will need advice.  “As the independent financial advisers we still have to go to a lot of intricate detail when helping clients. Although we have a £30,000 threshold for new clients, we still have existing clients with much smaller pots than this who will need advice to manage their retirement”.

“New clients and the wider population do not realise the administrative work involved in giving retirement planning advice, whether the pot is £10,000 or £100,000.  We have to go through all sorts of calculations and look at the yield on the pot and go through all the permutations available to the client to make sure we’re treating customers fairly and getting them the best outcome in the market.” 

So in this reducing advice market, with a need to get suitable advice, where do you go for reliable independent advice now?

Well most banks have taken away their advisers, except for those classed as high net worth.  That leaves the 30,000 UK advisers who hold the qualification.
 
Amongst these, some will not be independent, some may be restricted advisers and some may not hold the relevant pension transfer qualifications.
 
Fees can vary wildly between advisers and firms.  A fee of around £750 would see your plan assessed and your options given.  If you then wished to transfer to the recommended company you can expect to pay up to 3% of the value of your fund.  So for a £100K pension, the total cost including the assessment would be around £3,000.  This is only an estimate and would depend on the time taken to assess all of your plans.  However, you should use this as an industry benchmark when talking to other firms. 

Speak to our pension specialists today for FREE.  Contact Warrington IFA Assured Wealth today and get those pensions sorted out at last.
 

Mark Jones – Financial Planner at Assured Wealth and Estate Planning Limited said, “Those people who need to transfer pension will need to speak to a highly qualified pension transfer specialist.  However, people with money purchase schemes, even if there isn’t much money in their pots, will need advice.  “As independent financial advisers we still have to go to a lot of intricate detail when helping clients. Although we have a £30,000 threshold for new clients, we still have existing clients with much smaller pots than this who will need advice to manage their retirement”.

“New clients and the wider population do not realise the administrative work involved in giving retirement planning advice, whether the pot is £10,000 or £100,000.  We have to go through all sorts of calculations and look at the yield on the pot and go through all the permutations available to the client to make sure we’re treating customers fairly and getting them the best outcome in the market.”

So in this reducing advice market, with a need to get suitable advice, where do you go for reliable independent advice now?

Well most banks have taken away their advisers, except for those classed as high net worth.  That leaves the 30,000 UK advisers who hold the qualification.

 Amongst these, some will not be independent, some may be restricted advisers and some may not hold the relevant pension transfer qualifications that our Warrington financial planning team holds.

Fees can vary wildy between advisers and firms.  A fee of around £750 would see your plan assessed and your options given.  If you then wished to transfer to the recommended company you can expect to pay up to 3% of the value of your fund.  So for a £100K pension, the total cost including the assessment would be around £3,000.  This is only an estimate and would depend on the time taken to assess all of your plans.  However, you should use this as an industry benchmark when talking to other firms.

Speak to our pension specialists today for FREE.  Contact our Warrington financial advisers at Assured Wealth today and get those pensions sorted out at last.  Or call us on: 0843 515 5161.

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