What To Look For When Choosing A Pension Transfers Advisor

Transferring your pension without using a specialist such as a pension transfer advisor will almost certainly result in disaster. The pensions market is extremely complex, with legislation and regulations changing constantly, and only an expert can keep up with new requirements and make educated recommendations.

Your pension fund is one of the most important sources of money you have. The pension fund is a tax-efficient way of saving for your future, and if you are thinking of transferring your fund from one provider to another, you want to be sure that your money will be safe, will still grow at a good rate and that you will get good benefits from the new scheme.

It's important that you get independent advice, from an authorised advisor. All pension advisors need to be regulated by the Financial Services Authority (FSA), and any information or letters they send to you should state that the business is fully authorised. You can get pensions advice from an advisor who works for a large bank or investment company, but they will only be able to advise on their own products, not on the whole marketplace. To give you the best chance of getting your pension transfer right, pick an independent pension transfer advisor, who has broad knowledge of the market, and will advise on what's best for you.

Once you have ascertained that your advisor is authorised by the FSA and independent, you should find out about their charges. Remember that talking to a financial advisor is no different to talking to a solicitor or accountant, so some may charge a fee for their advice, whilst others may make a commission on the product your pension is transferred to. Whichever method of payment they use, they are obliged to set it out to you in a Key Facts document. This helps to ensure that you are aware of how the advisor works, and that you have a method of redress if you feel you have been overcharged or mis-sold.

Find out exactly what the pension transfer advisor will do for you. You will need to get a transfer value on your current pension, and you will also want to compare benefits to ensure that you are getting the same level of benefits from the new pension as you did with the old one. In addition, your advisor should provide you with clear, understandable illustrations of the products you are looking at, so that you can make an informed decision. There should also be a cooling-off period, where you can change your mind if you need to.

So, here are the things you need to consider when you choose a pension transfer advisor:

Are they authorised by the FSA?
Are they independent?
Are they happy to tell you about their charges, and to set them down clearly in writing?
Will they obtain a transfer value and comparative benefits for your pension?
Will they provide a clear illustration of what the pensions transfer will mean to you?
Do they operate a cooling-off period?

At Pension Transfers, our panel of specialist pension transfer advisors is fully independent and compliant with all the FSA regulations in respect of pensions advice.