What Is A Reasonable Fee To Pay A Financial Advisor?
Getting retirement planning advice could mean the difference between just surviving or being able to live comfortably in your golden years.
I know this may seem overly dramatic, but pension advice can really pay off, not only does it provide you with peace of mind it can help ensures that the funds in your workplace pensions are working as hard as you are.
A pension advisor can help reassure you that once you reach retirement your funds will not be running out anytime soon, considering how important financial advice is, its hardly surprising how many people ask me "What is a reasonable fee to pay financial advisor?"
What is a reasonable fee for financial or pension advice?
How much you pay for pension or financial advice we're vary greatly on the structure of your finances and the level of expertise of the retirement planning expert you're talking to.
For example some pension advisers charge a percentage of the overall value of your fund, whereas other retirement planning experts simply charge an hourly rate or even the set fee
A UK consumer association survey conducted on pension advisors across the country, found that on average they charge 2.7% fees. They asked for the cost of receiving pension advice on a fund worth 150k and it cost just under 3K.
Should you pay for retirement planning advice?
Another survey conducted by unbiased reported that people who began to get pension advice at an early age usually 25 or younger managed to save on average nearly 35k more than people who didn't take any pension advice.
When you factor into account interest in tax relief this is a significant lump of cash. People who receive retirement planning advice from pension advisors later in their life after the age of 35 or tend to save on average 25k more, than those who didn't get pension advice.
What are you paying for when you get Pension advice?
When talking to a pension advisor about retirement planning you will discuss all aspects of your finances and your lifestyle expectations and retirement. They'll talk to you about your savings goals and your potential for transferring your pensions.
For example it's not uncommon in this day age for people to have numerous pensions including state pensions, as well as workplace pensions. One of the biggest issues people face in retirement is keeping track of all these finances. Before retirement you're better off consolidating them into a single plan and talking to pension advisers is the easiest way to do this
Getting pension advice will give you a greater understanding of whether the amount of pension savings you have are invested appropriately and whether you're gaining a return on your investment that's worthwhile.
I am retiring in the next few years, do I need pension advice?
Despite what some people may tell you retirement planning is easier the closer you are to receiving your pension. You will have a greater understanding of your lifestyle expectations as well as your overall pension fund.
You can discuss with your pension expert the best ways to deal with your workplace pensions. Whether you should consider a drawdown or an annuity, whether you prefer to control your own finances or have a guaranteed income for the rest of your life. This decision is important and should never be done without weighing up the pros and cons and discussing it with a pension advisor in advance.
One of the most common decision people make these days is to work with a combination of both, they draw down a cash lump sum tax-free and then take an annuity.
Can I get free pension advice?
Yes you can pick up the phone and talk to a representative today and they will detail the free financial advice consultations that we offer to prospective clients.
You can also discuss your pension options with the government's pension wise service. However it's important to remember that this is a guidance service not an advice service you're not talking to qualified financial advisors and they won't be able to tailor the advice to your specific financial circumstances.
If you want basic information talk to the government advisors but when it comes to receiving first class retirement planning or pension advice leave it to the experts make sure you speak to a qualified financial advisor.
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