Finding a retirement financial adviser: what to look for
A retirement financial adviser is an FCA-regulated professional who recommends how to turn pensions, savings and sometimes property into retirement income. Before you book, check the FCA Register, whether they are independent or restricted, their qualifications and how they charge. Free guidance from Pension Wise can help you prepare.
This guide explains what to check before a first meeting. It is general information, not financial advice.
What a retirement financial adviser does
Retirement planning covers a lot of ground: pensions, income, tax, care costs, inheritance and property wealth. An adviser looks at your whole position, then makes a personal recommendation they are accountable for. That might cover:
- when and how to take pension income, including drawdown or an annuity
- combining pensions, savings and the State Pension
- tax on withdrawals and what happens to your pension on death
- whether using home equity, such as equity release, is worth considering alongside other options
Independent vs restricted retirement financial advisers
Under FCA rules, an adviser must tell you whether their advice is independent or restricted.
- Independent advisers consider products from across the relevant market.
- Restricted advisers recommend from a limited range, which may be one provider's products or a panel.
Both are regulated and must give suitable advice. The difference is the range they can draw on, so it is reasonable to ask a restricted adviser what the restriction is.
Checking the FCA Register
Search the FCA Register for the firm and the individual adviser. It shows whether they are authorised and what they have permission to do. Use the contact details on the Register, not those in an unexpected email or call, and check the FCA warning list too.
Qualifications and specialist permissions
Advisers giving investment and pension advice need a qualification at least at diploma level (Level 4). Some hold higher qualifications, such as Chartered Financial Planner status.
Some areas need extra qualifications and permissions:
- Defined benefit pension transfers. Advice must involve a qualified pension transfer specialist, and you generally need regulated advice before transferring safeguarded benefits worth more than £30,000.
- Equity release. Advisers need a specialist equity release qualification and mortgage advice permissions. See finding a regulated equity release adviser.
How retirement advisers charge
Advisers must explain their charges before advising you. Common structures include:
- A fixed fee for a specific piece of work, typically from around £500 to £3,000 depending on complexity.
- A percentage of the money advised on, often around 1-3% initially, with ongoing charges commonly around 0.5-1% a year.
- An hourly rate, sometimes used for a single, narrow question.
Ask for the charges in writing, including what any ongoing fee covers.
Free guidance vs regulated advice
Pension Wise is a free, impartial government service from MoneyHelper for people aged 50 or over with a defined contribution pension. It explains your options but will not recommend one.
MoneyHelper also offers free information and a directory of retirement advisers.
Regulated advice gives a personal recommendation. You pay for it, but you can complain to the Financial Ombudsman Service if it was unsuitable.
Preparing for a first meeting
It helps to bring:
- recent statements for each pension, including any guaranteed benefits
- your State Pension forecast from gov.uk
- details of savings, debts and any mortgage
- a rough budget and your priorities, such as income, flexibility or leaving money to family
Useful questions to ask:
- Are you independent or restricted?
- Which qualifications and permissions do you hold for my situation?
- How do you charge, and what does any ongoing fee include?
A good adviser should explain things plainly and say what falls outside their expertise. Legal matters, such as a lasting power of attorney, may need a solicitor.
Not sure where to start?
Understanding your pension options at 55 and beyond before a meeting can help you get more from it. We do not provide financial advice.
Looking for the right adviser for your situation?
Frequently asked questions
Do I have to pay for retirement financial advice?
Regulated advice is usually paid for, either as a fixed fee, a percentage of the money advised on, or an hourly rate. Free guidance is available from Pension Wise and MoneyHelper, but guidance explains your options rather than recommending one. Many advisers offer an initial meeting without charge, so it is worth asking how and when fees apply.
How can I check an adviser is genuine?
Search the FCA Register for both the firm and the individual adviser, and check the permissions listed match what you need help with. Use the contact details shown on the Register rather than those given in an email or call. If a firm is not listed, or is on the FCA's warning list, do not proceed.
What is the difference between an independent and a restricted adviser?
An independent adviser must consider products from across the relevant market. A restricted adviser may only recommend from a limited range, such as one provider or a panel. Both are regulated and both must give suitable advice, but a restricted adviser should tell you what the restriction is before advising you.
Can one adviser help with pensions and equity release?
Sometimes. Equity release and defined benefit pension transfers need specific qualifications and FCA permissions that not every retirement adviser holds. Some firms have specialists in each area, while others refer clients elsewhere. Our guide to finding an equity release adviser explains what to check for that part of your plans.
What can I do if I am unhappy with the advice I received?
Complain to the firm first; it must respond within set time limits. If you are not satisfied with the answer, you can usually take the complaint to the Financial Ombudsman Service, which is free to use. If a firm has failed, the Financial Services Compensation Scheme may be able to help, subject to limits.