Financial Advice

Why Getting Financial Advice is so important

When it comes to managing your finances, it's important to consider the two biggest assets most people have: their property and their pension. So, why wouldn't you seek the help of a qualified financial adviser to ensure you're making the best decisions for your future?

The truth is, many people either don't have access to financial advice or believe it's too expensive. But recent studies have shown that using a financial adviser can actually make you 17-39% better off in the long run. One such study, conducted by the ILC-UK with the support of Royal London, reported staggering figures for individuals taking advice vs not taking advice, see the results here.

Just like you would ask a doctor questions about health, seeing a financial adviser is essential to ensure your financial well-being. 

"9 in 10 people are satisfied with the advice received, with the clear majority deciding to go with their adviser’s recommendation."

When it comes to managing your health, it's common knowledge that seeing a doctor is essential. Whether you're feeling ill or just want to check in, a doctor can help diagnose any issues and provide the necessary treatment to keep you in good health. But what many people don't realise is that the same principle applies to managing your finances.

Just like how not seeing a doctor can lead to untreated health issues, not seeking financial advice can lead to financial problems that could have been avoided. A financial adviser can help you understand your financial situation and provide guidance on how to improve it, for example in the study it states that people who had received advice in the study period had more pension income than their peers.

Your questions about Financial Advisers, answered

Aren't financial advisers expensive?

This depends on the kind of service you require. Face to face advisers typically need to charge more as they have additional costs to incur such as travelling to and facilitating an appointment, however there are more cost effective solutions. For example, at Pense, we have heavily invested in technology to reduce the cost of giving financial advice, which allows us to pass savings on to customers. This means that customers can access financial advice at a lower cost than they would with traditional financial advisers. However, it is better to have some form of financial advice, regardless of the method chosen, rather than not having any advice at all.

How do I know if a financial adviser is a good fit for me and my financial goals?

To determine if a financial advisor in UK is a good fit for you and your financial goals, it is important to have an initial consultation to discuss your financial situation and goals and to get a sense of their communication style and investment philosophy.

It's also important to understand how they get paid, whether they have any conflicts of interest and if they are authorised by the FCA.

How do financial advisers get paid?

Financial advisers in UK can be paid through a variety of methods such as fees, commissions, or a combination of both. All fees will be explained up front and normally there is the option to pay the fee from the investment made, meaning you don't have to pay upfront. 

How do I find a reputable financial adviser?

To find a reputable financial adviser, you can ask for recommendations from friends and family, check with professional organisations like the Chartered Institute for Securities and Investment (CISI) or the Financial Conduct Authority (FCA) register, and read reviews from past clients.

There are government services that will also ensure you are put in touch with the right adviser for your circumstances. At Pense, we specialise in retirement planning and our financial experts are specialists in this area.

What qualifications or certifications should a financial adviser have?

Financial advisers in UK should have relevant industry certifications such as the Chartered Financial Planner, Chartered Wealth Manager, or Chartered MCSI and be authorised and regulated by the FCA. It is also important to check their background and regulatory compliance.

What makes financial advice essential for a successful retirement plan?

Financial advice enables you to make informed decisions that align with your financial goals and needs. Professional financial advisers have the expertise to evaluate your individual circumstances, risk tolerance, and objectives to provide tailored recommendations for your retirement income options. They can help demystify complex pension choices such as annuities, fixed term annuities, and flexi-access drawdowns ensuring that you select the most suitable solution for your unique situation. By seeking financial advice, you'll be better equipped to maximise your pension income and secure a comfortable retirement.

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