How to identify a pension advisor who's any good
Discussion
millen said:
I'm in a different predicament - decided I should start to consolidate several pure DC arrangements (occupational and private) soon, with issues on crystallization, LTA etc. 'Normal sources' to find a suitable IFA for one-off advice weren't promising. Then I discovered a social contact is married to a generalist IFA who is currently winding down his spreadsheets and has no axe to grind. I outlined the problem and he came back immediately with 4 names that he would have referred to and we've now whittled that down to just two.
So don't ignore the value of speaking to "someone who knows someone". In fields like this 'insiders' may have better knowledge of their fraternity than Trustpilot etc reviews. I was also given to understand many IFAs will give 30 mins of 'free' advice - which may help establish whether you're comfortable with the individual.
The 'free' time is equivalent to the 'free' coffee at your preferred car dealership.So don't ignore the value of speaking to "someone who knows someone". In fields like this 'insiders' may have better knowledge of their fraternity than Trustpilot etc reviews. I was also given to understand many IFAs will give 30 mins of 'free' advice - which may help establish whether you're comfortable with the individual.
You are as likely to walk away from an adviser with free advice as you are to walk away from a car dealership with a free car!
It is the distinction between the passing on of information and guidance acquired over many years (90% of what most people are seeking) and the provision of a product recommendation (100% of what they are paying for).
In the former you are paying for experience and qualifications, in the latter it is usually down to adviser preference (which may be from experience, but may also be down to the adviser's convenience or - occasionally - external financial influences).
The fact remains that most advisers charge for product recommendations. Most people would rather pay for the experience and qualifications, in the same way they do with solicitors and accountants, rather than an initial and ongoing slice of their money.
I have no issue with financial advisers, just the way they charge, BTW.
Many thanks for the advice (which I've followed).
I'm interested in advice about whether to transfer an existing pension scheme. Despite being chartered, my original advisor didn't seem to have in-depth knowledge about this.
I'm interested in advice about whether to transfer an existing pension scheme. Despite being chartered, my original advisor didn't seem to have in-depth knowledge about this.
Bigcarrot91 said:
What sort of advice are you looking for:
What type of pension to take out?
Whether to transfer an existing DB or DC scheme?
Where to invest your existing DC pension?
Whether to get life assurance or critical illness cover?
What to do with an Endowment (Assurance)?
Depending on the above, the answers could be very different!
Where would you look for reliable knowledge about whether to transfer an existing scheme?What type of pension to take out?
Whether to transfer an existing DB or DC scheme?
Where to invest your existing DC pension?
Whether to get life assurance or critical illness cover?
What to do with an Endowment (Assurance)?
Depending on the above, the answers could be very different!
It’s a specialist area with a rapidly shrinking amount of firms willing to take on such business.
We’ve just stopped advising on DB transfers after a fourfold increase in PI renewal premiums.
That’s with zero complaints, ever.
The PI insurers are nervous & either refusing cover outright or offering terms with huge premium hikes & exclusions.
The PPI claims window ends in August & these firms will shortly move on to pension transfers.
We’ve just stopped advising on DB transfers after a fourfold increase in PI renewal premiums.
That’s with zero complaints, ever.
The PI insurers are nervous & either refusing cover outright or offering terms with huge premium hikes & exclusions.
The PPI claims window ends in August & these firms will shortly move on to pension transfers.
darreni said:
It’s a specialist area with a rapidly shrinking amount of firms willing to take on such business.
We’ve just stopped advising on DB transfers after a fourfold increase in PI renewal premiums.
That’s with zero complaints, ever.
The PI insurers are nervous & either refusing cover outright or offering terms with huge premium hikes & exclusions.
The PPI claims window ends in August & these firms will shortly move on to pension transfers.
Interesting, we are in a similar position and may decide to cease offering advice on DB transfers within our independent business.We’ve just stopped advising on DB transfers after a fourfold increase in PI renewal premiums.
That’s with zero complaints, ever.
The PI insurers are nervous & either refusing cover outright or offering terms with huge premium hikes & exclusions.
The PPI claims window ends in August & these firms will shortly move on to pension transfers.
Our restricted offering is still open for business, and with the risk sitting elsewhere, this is where we would like to place new enquiries. However, criteria for getting a transfer through is very restrictive here, with perhaps as few as 1 in 10 who approach us likely to be deemed suitable.
I really feel for clients with DB pensions seeking advice, the market is really shrinking, by the day it seems.
Helicopter123 said:
Interesting, we are in a similar position and may decide to cease offering advice on DB transfers within our independent business.
Our restricted offering is still open for business, and with the risk sitting elsewhere, this is where we would like to place new enquiries. However, criteria for getting a transfer through is very restrictive here, with perhaps as few as 1 in 10 who approach us likely to be deemed suitable.
I really feel for clients with DB pensions seeking advice, the market is really shrinking, by the day it seems.
It’s a shame for the clients as It was already hard for them to find an good adviser that was willing to look at dB transfers. I’ve been quite picky about DB transfer advice, if I don’t think is the best solution for the client, I’ll decline it. Our restricted offering is still open for business, and with the risk sitting elsewhere, this is where we would like to place new enquiries. However, criteria for getting a transfer through is very restrictive here, with perhaps as few as 1 in 10 who approach us likely to be deemed suitable.
I really feel for clients with DB pensions seeking advice, the market is really shrinking, by the day it seems.
The revised guidelines now require you to issue full suitability advice if you advise not to transfer. You are then on the hook for this advice for years to come, so if the client dies in 5 years time & the spouse is not happy with a 50% spouses pension, you have a problem.
Likewise if the scheme has issues in future.
I can also see this extending to cases where the future CETV is lower and you have previously advised not to transfer.
We have decided we are best off out of it. The DB advice was a small proportion of the business, but involves the most work & greatest liability.
darreni said:
Helicopter123 said:
Interesting, we are in a similar position and may decide to cease offering advice on DB transfers within our independent business.
Our restricted offering is still open for business, and with the risk sitting elsewhere, this is where we would like to place new enquiries. However, criteria for getting a transfer through is very restrictive here, with perhaps as few as 1 in 10 who approach us likely to be deemed suitable.
I really feel for clients with DB pensions seeking advice, the market is really shrinking, by the day it seems.
It’s a shame for the clients as It was already hard for them to find an good adviser that was willing to look at dB transfers. I’ve been quite picky about DB transfer advice, if I don’t think is the best solution for the client, I’ll decline it. Our restricted offering is still open for business, and with the risk sitting elsewhere, this is where we would like to place new enquiries. However, criteria for getting a transfer through is very restrictive here, with perhaps as few as 1 in 10 who approach us likely to be deemed suitable.
I really feel for clients with DB pensions seeking advice, the market is really shrinking, by the day it seems.
The revised guidelines now require you to issue full suitability advice if you advise not to transfer. You are then on the hook for this advice for years to come, so if the client dies in 5 years time & the spouse is not happy with a 50% spouses pension, you have a problem.
Likewise if the scheme has issues in future.
I can also see this extending to cases where the future CETV is lower and you have previously advised not to transfer.
We have decided we are best off out of it. The DB advice was a small proportion of the business, but involves the most work & greatest liability.
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