Specialist Independent Pension Advice

Your retirement should be a happy and relaxing time. Planning for it should be the same, but unfortunately this often isn’t the case.


People don’t plan to have a low inflexible income in retirement, they just ‘fail to plan’. If you want Truly Independent Advice on your pensions and your retirement, Efficient Portfolio are the specialists that can help you.


You can call us on either 01572 898060 for a Free Initial Consulation

Or you can email us on enquiry@efficientportfolio.co.uk


Why get pension advice?

The papers often report on how poor pension are. I am afraid to tell you that too many pensions out there are just that! Lets look at why;

Charges

Many pensions, particularly those that were set up before 2001, take large amounts of the growth you receive in high charges. This means that at retirement, your fund will be worth less, and thus generating a lower income.

Fund performance

All too often the funds invested in within the pension are providing little or no growth. If your money doesn’t grow, it will again provide you with a lower income in retirement that you be entitled to. The pensions provided by the banks, building societies and companies that are no longer open to new business tend to be worst here. Examples of companies no longer open to new business are NPI, Lincoln, Abbey Life, Equitable Life and Canada Life.

With Profits

Whilst some With Profit funds are producing a reasonable return, the majority have provided little or no return over the last 10 years. Many companies that have old closed With Profit funds have provided no growth since 2000.

Annuity rates

When you reach retirement, the income you are offered is known as an annuity. This is often much lower than you could get from a specialist provider, if indeed an annuity is the best option for you.

Why should you seek pension advice?

Understand what you have

Pensions are a minefield. It is difficult to find out all the finer details of your pensions, and this is not something you will get sent as a matter of course from the pension provider. If you speak to a good pension adviser you will be able to find out what sort of pension you have, whether they are suitable to your circumstances, and whether they are any good.

You can move

If you find out you have your money invested in a rubbish pension, you don’t have to stay there. Almost all pensions can be moved if a better or more suitable pension can be found. This could mean you end up with a higher income in retirement through paying less charges or getting more growth.

Don’t throw it away when you die

Buying the wrong annuity at retirement can mean your spouse receives no pension if you die first. Even if you get that bit right, buying an annuity means your children will almost certainly never see any of that fund after you and your spouse have passed away. Alternative options, whilst not suitable for everyone, can allow you to pass some of the excess fund down to the next generation.

Best annuity

The pension provider is unlikely to provide you with the best annuity on the market. Specialist providers often offer higher incomes, and you are free to choose those with most pensions. This is known as the open market option. If you suffer or have suffered from an illness, this may mean you qualify for an enhanced or impaired life annuity, which will again give you a higher income.

Guarantees

Some older pensions have some really valuable and quirky guarantees. This is more common in pensions set up before 1989, but they can occur later than that. These guarantees, such as Guaranteed Annuity Rates (GAR) are often very valuable, but can be easily missed. If you have any of these, and they are appropriate to your needs, it is important you know about them so you can maximise their full potential.

How can you seek pension advice?

If you want advice on an existing pension, and whether that is the best solution available to you, you need to seek independent advice. An adviser that is tied to a listed number of companies (such as those in the Bank, Building Society, or tied advisers such as St James’ Place) is unlikely to be able to give you the advice you need in this instance because they cannot advise you on the product you already have. You can read more about this particular element of our industry here if you want to know more.

Qualifications are key

Not all Independent Financial Advisers have the qualifications or expertise to give advice on whether you should transfer a pension to a different provider. AF3 and formerly G60 are the leading qualifications in pensions.

Fee vs commission

Some advisers work on a commission basis, so the advice you receive is paid for through the charges of the contract you are recommended. Whilst we know plenty of commission based advisers that offer impartial advice, this is not always the case. Some advisers work on a fee basis. This means there is no incentive to be biased towards a particular product or provider. You can read more about this subject here.

Who are Efficient Portfolio?

We are independent fee based advisers that specialise in investment and retirement planning. We are based in offices in Rutland and London. Our advice is focused on clients in and around Rutland including Stamford, Corby, Kettering, Northampton, Peterborough, Leicester amongst others, plus greater London from our office in Victoria. You can read more about us here.

You can call us on either 01572 898060 for a Free Initial Consulation

Or you can email us on enquiry@efficientportfolio.co.uk