Do I need a financial advisor for my pension?

If you’re looking to save for your retirement, or you’re looking for the best way to generate an income once you’ve stopped work, there has never been more choice.

So, do you really need a financial advisor when you’re looking to make decisions relating to your pension?

Good financial advice can increase your retirement income, offer you added protection and help you maintain a focus on your long-term objectives. Keep reading for five reasons you should speak to a financial advisor about your pension.

You’ll increase your retirement income

There has been a lot of research that shows that financial advice leads to a bigger pension pot in retirement.

For example, a study by and AXA Life Invest shows that nearly half (43%) of UK savers approaching retirement increased their retirement savings levels by £98 a month as a direct result of taking financial advice.

If you put away an additional £98 per month as a consequence of taking financial advice, you would receive an additional income of £3,654 every year of your retirement, based upon a pension pot of £100,000.

If you saved this additional amount and experienced investment growth of 5% (currently the intermediate rate for tax-advantaged products such as ISAs and pensions, as prescribed by the FCA), your total pension pot would be £63,595 greater than someone who had not sought advice.

Alternative research by Vanguard suggests similar benefits of taking financial advice. They found that advisors could add value by around 3% in net returns per year for their clients.

You’ll benefit from an advisor’s knowledge and experience

In early 2018, the Pensions and Lifetime Savings Association found that 80% of people were not sure they were saving the right amount for retirement.

A similar Prudential survey found that more than half of millennials wish their employer would explain pensions to them and nearly a quarter said that they find pension rules very confusing. Prudential also found that more than two-fifths admit that they do not know if they are on target for retirement saving.

A financial advisor knows the pension business inside out. Theyunderstand how complex financial products work and how these products may be able to benefit you. They must also have achieved industry qualifications before they can give you pension advice.

All this means that you’re benefiting from quality advice from someone who knows a complex subject inside out.

You’ll make better decisions

If you’re looking to save for retirement, then you have several different choices. And, if you’re approaching retirement, recent changes to pension rules mean you have more options than ever before. So, it can pay to take financial advice to make more informed decision.

Karen Barrett, chief executive of, says: “Retirement planning has always been the uppermost reason why people seek financial advice, and this comes as no surprise given that the financial decisions you make for and at retirement are some of the most important you make in your life.

“The pensions world has seen a lot of change in the last few months, which has created even more options for consumers to consider, so having a professional adviser take you through the different options will help you to feel confident about the choices you make,” she adds.

You’ll maintain a long-term perspective

As well as offering professional expertise, financial advisors can also help you to maintain your focus on your goals and saving ambitions.

In their role as a ‘behavioural coach’, they will help you to maintain a long-term perspective and a disciplined approach to your retirement planning.

Vanguard say that the added value of this approach can be up to 1.5% per annum.

You’ll benefit from additional protection

If you take financial advice, then you have the peace of mind that you’re protected if anything goes wrong.

Your advisor is there to act in your best interests, and so you have recourse if you are misled or if a product has been mis-sold to you.

Need high-quality retirement planning advice? We offer free consultations in Epsom, Surrey and South West London. click here to book a ten minute chat, a consultation at our cost, or call (01372) 404417 to book .

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