How much does pension advice cost?
- Reeves Independent
- Oct 30, 2024
- 6 min read
“Retirement: That’s when you return from work one day and say, “Hi, Honey, I’m home - forever.” – Gene Perret.
You may or may not be familiar with the late American comedy writer, but there's a profound truth in that quote. At Reeves Independent, we embrace this idea by working closely with you to help achieve your retirement goals. Consulting a financial adviser can greatly enhance your retirement planning and set you on the right path.
When considering pension advice, you might worry about the potential cost. Rest assured, you're not alone in seeking professional financial guidance.
Over half of UK adults have sought assistance from financial advisers in the past year, according to research by Prudential. Currently, 33% have already consulted an adviser, with an additional 20% planning to do so.
With the cost-of-living crisis increasing everyday expenses, many individuals planning for retirement have had to adjust their living situations and dip into their savings to make ends meet. As a result, those saving for retirement may feel worried that they are no longer on track to reach their planned retirement date or may even need to delay retiring altogether.
Your retirement and future are incredibly important. Sometimes, a little guidance is all you need. That’s why it’s always advisable to seek expert advice from an Independent Financial Adviser before making any decisions that could affect your financial future.
You might be asking yourself, "How much does pension advice cost?" or "What does a financial adviser charge?" Don't worry - keep reading to learn what a financial adviser can do for you, why it's important to consider independent advice, and how much our services would cost.
What does a financial adviser do?
A financial adviser is a professional who provides expert guidance on managing your finances. They help individuals and businesses make informed decisions about their money, covering areas such as pensions, savings & investments, tax & estate planning, retirement planning and insurance policies.
Financial advisers assess your personal financial situation, goals, and risk tolerance to recommend tailored solutions that align with your long-term objectives.
Using that information, they will craft a personalised plan tailored to your individual needs and objectives.
There are two main types of financial advisers:
Independent Financial Advisers (IFAs) – They offer unbiased advice across a wide range of products from the entire market. (This is us here at Reeves Independent!)
Restricted Advisers – They are limited to recommending specific products or services, often tied to a particular provider or group.
Financial advisers can help with important financial decisions and planning, ensuring you’re on the right path to meet your financial goals.
Reeves Independent is, as it says on the tin, independent and we offer advice across the board. Established in 1996, we are a recognised specialist advice firm, providing expert pension advice, retirement planning and investment services. Book your free pension and retirement review today to start your journey towards achieving your retirement goals.
Why should I consider hiring a financial adviser?
Hiring a financial adviser can provide significant benefits, especially when managing complex financial decisions.
Firstly, expertise is key. Financial advisers are trained professionals who have a deep knowledge of investments, pensions, tax laws, and retirement planning, helping you navigate these complex areas. Advisers can offer expert guidance when you face significant and potentially challenging financial decisions, such as those related to approaching retirement. If you purchase an investment product based on professional financial advice and recommendations, you are far more likely to acquire a product that aligns with your needs and is suitable for your specific circumstances.
Depending on the type of adviser you choose, you may have access to a broader range of options than you could realistically find on your own. That’s where an independent like Reeves comes into play. To find out what we could do for you, please allow us to introduce ourselves in this introductory guide to Reeves Independent.
Financial advisers can also tailor their recommendations to your unique financial goals, risk tolerance, and life circumstances, ensuring your plan suits your specific needs. Furthermore, an adviser can develop a plan to help you achieve your short-, medium-, and long-term goals. They will also keep you on track to reach those objectives and make adjustments as needed.
Another important aspect is that if you have funds to invest, an adviser can help ensure your money works effectively for you while maximising the tax reliefs and allowances available. They can identify opportunities to maximise returns, minimise taxes, and protect your assets, giving you confidence that your finances are being managed effectively.
Time is often in short supply in our hectic lives, making it essential to save as much of it as possible. Managing finances can be both time-consuming and overwhelming. An adviser alleviates this burden by taking care of the details and keeping you informed.
Lastly, financial advisers provide an unbiased view of your situation, helping you avoid emotional decisions and stay focused on your long-term financial well-being.
In short, hiring a financial adviser can give you peace of mind, save you time, and help you make informed, strategic decisions for a secure financial future.
When do I need financial advice?
Firstly, financial advice is important to your retirement. Why? Well you can read our blog piece on why it is a vital cog in your retirement planning wheel here.
It will depend on a combination of the specific product or service and various other factors. You may need financial advice when planning for retirement, investing, tax and estate planning to simply changing jobs, buying a home or major life changes such as divorce.
Expert financial advice can be extremely valuable if you need assistance with important decision-making. It can also be vital if you want to ensure your tax obligations and household finances are managed effectively, or if you're facing financial challenges that may become complex and time-consuming.
If you’re considering investing in a personal pension, enhancing your current pension, or consolidating various pension pots, it's advisable to seek guidance unless you have a solid understanding of how these products function.
Pensions are long-term investments, so it’s crucial to ensure you comprehend the types of funds you’re investing in, as well as the associated risks and their suitability for your specific circumstances.
For other areas such as investments, it’s not always straightforward to determine what to expect from them or how they operate.
By forgoing professional advice, you may overlook various options available to you, potentially leading to the purchase of a product that isn't suitable for your needs.
If you don’t have the confidence to do it alone, then seeking financial advice may be your best choice. When making this decision, consider the cost of fees in relation to the financial and emotional toll of making a mistake by purchasing without guidance.
In general, if you find yourself facing complex financial decisions, unsure of your financial situation, or looking to achieve specific financial goals, it’s wise to seek the guidance of a financial adviser.
Reeves fee structure
At Reeves, we prioritise transparency and openness regarding our costs.
Our review is actually free of charge, and this also includes our recommendations on where we can add some value to your arrangements.
A fee would only come into play should you decide to go ahead with our recommendations and become a client.
Here’s a clearer and easier-to-understand version of the information on charges:
Minimum Initial Charge
There is a minimum charge of £1,000 for all new clients. This does not apply to existing clients making additional investments.
Maximum Initial Charge
The initial adviser fee will not exceed £15,000 for a single transaction.
Initial Advice Charges
No Ongoing Service:
- 4% of the investment amount.
Discounted Charges (Where Ongoing Service Applies):
- For funds up to £300,000: 2.99% of the investment amount.
- For funds over £300,000: 0.5% of the investment amount.
Fixed Fees:
A one-time fee of 4% of one year’s contributions, with a minimum fee of £500.
A fixed fee of 0.5% of one year’s gross contributions, paid in equal instalments over 12 months, with a minimum fee of £10. This fee will not be waived if contributions are cancelled within the first year.
Ongoing Advice Charges
For LGT Discretionary Investment:
- 1.1% of funds up to £500,000.
- 0.55% of funds above £500,000.
For All Other Solutions:
- 1% of funds up to £500,000.
- 0.5% of funds above £500,000.
Choosing Reeves Independent for your financial advice comes with a host of benefits that set us apart from the rest. Our commitment to transparency means you’ll always be informed about the costs involved, with no hidden fees or surprises. Our team of experienced and knowledgeable advisers is dedicated to understanding your unique financial situation and tailoring solutions to meet your individual goals.
At Reeves, we pride ourselves on building long-lasting relationships with our clients. We take the time to listen to your needs and provide personalised guidance, ensuring that you feel confident in your financial decisions. Whether you're planning for retirement, managing investments, or navigating complex financial challenges, our expert advice will empower you to achieve your objectives.
With a strong focus on integrity and trust, you can count on us to act in your best interests. Let Reeves Independent help you secure your financial future and navigate the path to financial success.
