7 things to look for in At Retirement advice
Given the importance of understanding your finances in retirement and having your pension under control, At Retirement advice is crucial. According to the FCA, 60% of people remain with their existing provider for an annuity, and a huge 80% of those could have got a better deal if they had gone elsewhere. This post explains ways you can get the best advice to secure the most suitable income method in retirement.
Ignore cold callers
The FCA states that people are being contacted out of the blue, and "this could be a phone call, an email or text message or an offer in an online advert." Some of these companies falsely claim to be authorised by the FCA, while others even "claim to represent the Government after its announcement to introduce free retirement guidance. This initiative has not been launched yet. When it is we, and the Government, will provide further information.]We will send out an information pack, which we may follow up with a phone call, but it's entirely at your discretion to talk to us or call us after receiving the pack.
Check a company's reputation
Word of mouth recommendation has long been a preferable way of choosing a company for many people, and the Internet has provided new ways to find out what others are saying about their experiences. Sometimes you can even check a company's reputation straight from Google - if you search for us, below our name is our eKomi rating (currently 4.7 out of 5). This helps you know that we are legitimate and helpful, as the ratings are provided by past clients. You can even click through and read the full testimonials from those clients. If a company doesn't have this rating for you to see, you should find other ways to investigate them, like forums or Twitter, for instance.
See if they're registered with the FCA
As the governing body to the financial industry, the FCA holds a database of its registered companies. Our registration number is 754580, and you can see our page on the database by clicking here.
Ensure the company explores all options
There are multiple At Retirement options, and it's essential that you pick the one most suited to your own situation. When talking with a company, make sure they look at all the available options and don't try to push you into one that is actually better for them than you.
Don't rely on the advice of friends and family
Although they mean well, the best option for other people isn't necessarily the best option for you. Without an in-depth understanding of the whole market, it isn't possible for friends and family to provide you with the best advice, and so it's important to talk to a professional about your individual circumstance.
Check the IFA is a retirement specialist
Different IFAs may specialise in different areas, so make sure you find one who is an expert in retirement options. Ask for qualifications and client testimonials.
Don't be afraid to talk to multiple IFAs
If you feel the IFA didn't give you the best advice, or you just want a second opinion to compare what you've been told before making a decision, talk to another adviser. As with finding a reputable company, researching the IFA online or asking friends and family for a recommendation can help you feel more confident with the decision. When you do get an appointment, make the most of the opportunity - don't be passive and rely on the adviser to tell you everything there is to know; ensure you ask questions to give yourself the best understanding and get your individual circumstances across, including an explanation of fees and any reduction in starting income for including benefits. Other questions to ask include how many quotes they will get, the cost of the advice, what happens if you delay taking retirement income or how much your state pension could increase if you defer it, and for them to talk you through the process of reviewing your retirement income options.
The key to making the right decision is not rushing into it - take your time, explore your options and seek the best advice.
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The details provided in this article are for general information only and are in no way deemed to be financial advice. All of the material is correct as of the publication date, but could be out-of-date by the time you read the article. For our latest information and news, please see our articles section: https://www.portafina.co.uk/whats-new
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