Recent changes to pension regulations in the UK have meant that more people should be seeking financial advice, and yet many individuals do not have an appropriate independent financial adviser (IFA).
A recent report in the Financial Times said that a third of the UK population may have needed financial advice over the last year and did not access it. The statistics from the Financial Conduct Authority suggested that only one in ten adults sought guidance.
Of the group surveyed, over 18m individuals had savings of over £10,000 and would clearly have benefited from advice, particularly in an era of low interest rates.
Many felt they could manage their own finances or said that their savings did not warrant seeking counsel. Significantly, only 15% quoted affordability as a reason for not employing an IFA.
Given the sparse returns on deposit accounts, it was not surprising that the number of those seeking advice did rise over the twelve months to September 2018 by a significant 6% to 4.5m.
The impact on financial services of the emergence of software for IFAs, such as that found at www.intelliflo.com/, is one reason why those approaching retirement should consider seeking guidance on their plans. Even a one-off visit to an IFA might help with affordable advice on how and when to access state and private pension income and assets.
At the other end of the scale, if you are starting out on your career, you need to understand what a workplace pension means for you. You may want to begin a long-term savings plan with a view to purchasing a property or simply planning for your future. Any student debt should also be addressed.
A self-employed career will also need specialist advice on taxation.
If you are fortunate enough to be starting a career with potentially high earnings along the way, taxation issues will arise and be relevant to what kind of pension pot you can accumulate.
Other issues may manifest themselves if you are thinking of marrying and starting a family. Insurance policies and saving for your children’s education may not seem pressing issues, but forward planning can help to avoid any unforeseen eventualities which could impact your and your family’s lifestyle.
A good IFA will help you examine the possibilities and help to mitigate against any financial problems in the future.