There are many reasons why you may want to discuss your retirement plans and pension with a financial advisor. Unless you are in a scheme known as a ‘final salary’ pension, in which you receive a pension based on your final salary (because you worked at a very large corporation or organisation), it is likely that your pension will involve you saving into a scheme that holds your pension pot. An advisor can offer guidance on the best way to use this pension pot when you reach retirement, so that you can maximise its spending power.

There are lots of questions to think about regarding your pension and how best to use it, which is why it can sometimes help to have an experienced financial professional to hand who can advise on the most worthwhile options for you. New legislation which came into force in April 2015 states that you now have more control over your pension pot. Over the age of 55, you can decide to use your pension pot however you’d like to. Having the correct advice has never been more important. Unless you have a strong idea and a good knowledge of what to do and how pensions work, speaking to an advisor is always a good idea.

If you require help or guidance from a financial advisor and would like to discuss your pension and retirement plans, Financial Advisor UK can help. We offer the UK’s largest network of FCA-regulated professionals who can offer you help with retirement planning, pension funds, investments, annuities and more.

Taking financial advice

If you decide to use a financial advisor, you should understand the type of service you’re going to get from them. Not all financial advisors are the same. It is worth having a personalised financial advice service so that your advisor can go through your circumstances in detail with you. From here, they can then advise you on what they think you should do. A financial advisor who offers a personalised service can go through a wide range of choices with you – far more than if you did the research on your own. They can also explain any complicated concepts that you do not understand.

Remember that all financial advisors must only recommend actions that are suitable for your personal circumstances. If it turns out that you were advised incorrectly, you have legal protection and can complain to the Financial Ombudsman Service. All of our advisors at Financial Advisor UK are regulated by the Financial Conduct Authority, are highly qualified and experienced in offering the right advice to clients.

You should consider speaking to a financial advisor if you’d like to do any of the following:

• Invest your pension differently
• Transfer your pension
• Pay more into your pension
• Receive advice on leaving money after your death and minimising tax
• Mixing pension options

Always ask your advisor about their payment terms and what you’re expected to pay for their recommendations, as well as their fees and charges. There may be a fee for a one-off consultation, but some advisors give this away for free if you later decide to go ahead and use their services.

What to expect from meeting your financial advisor

Your financial advisor will discuss your retirement finances, your goals for retirement, investments and other financial products such as life insurance and annuities. They will discuss and recommend retirement income products that are suitable for your circumstances and what you’re interested in doing with your capital. The more you prepare for your meeting with your financial advisor, the more you will benefit from the meeting. Prepare to hand over details of your pension pot and other investments and income you have, such as pay slips and statements. Your financial advisor will cover lots of topics with you, including your accounts, investments, long-term care, potential disability, healthcare, life insurance, your will, your estate and other assets.

Why should I have a financial advisor for my retirement plans?

A financial advisor will help you achieve any financial goals you have for retirement – whether you dream of retiring abroad, cashing in an investment, moving home or planning how you will leave your estate to your loved ones. They are also there to inform you and make complex financial topics easier to understand, so you are more in control of your money. They can advise on saving and budgeting, investment strategies, insurance and other complicated tax matters.

Your advisor will talk through your financial situation in great detail and will help you plan for the future you’d like to have. They will need to get a complete picture of what your finances look like at the moment, including any assets you have, income sources, liabilities, debts, and any financial obligations you may have in future. They’ll also need to know any details of pension plans you have, investments, trusts and gifts you intend to give to family in the future (or have already given away).

Together, you will discuss the level of risk you are prepared to go to, as some investments are low risk, while others are medium, and some are high. Your advisor will need to know which level of risk you’d be most comfortable with, and also which type of investment products you’d prefer should this be applicable when managing your pension and investment portfolio. Your advisor may also look at your estate-planning, family situation, your will and plans for later life, including how your estate will be left to others, and whether you may need funds for care or health issues.

Based on your current financial situation, the advisor will be able to make projections for your future based on your goals and life circumstances. This will then take the form of a financial plan for the next five to ten years. If you are married, they may also cover how your spouse or partner will be covered financially in terms of your combined pensions and assets.

Reviewing your financial plan

After you and your advisor have both approved your financial plan for the future, you’ll make adjustments as you go along, depending on how your retirement is progressing, how your plans change, and what happens with your pension and investments. You’ll receive frequent updates from your advisor on your portfolio and how it is performing, which will enable you to make assessments as to what is and isn’t working. You can also work with your advisor to prepare for a significant change that could happen in your life that could affect your finances, such as the death of a loved one. Careful and continuous review of your financial plan will enable you to stay on track in reaching your retirement goals.