My dad retired recently. He had a deferred DB pension and numerous DC pensions kicking around. In my family, I am the go-to person for everything pensions related, so naturally he asked me what he should be doing to plan for retirement. My answer? Speak to an IFA. I wasn’t trying to be particularly unhelpful, but I knew that my dad would be in great hands with an IFA who was an expert in pensions and could give him sound advice to help him make these extremely important retirement decisions.

In my role, I speak to a lot of people about pensions through member presentations and one-to-one sessions. Again and again the same questions crop up…should I transfer previous pension pots into my current arrangement? How much will I actually need to live on in retirement? I’m confused about the annual allowance and lifetime allowance, and one of the most popular – should I pay off my mortgage or pay more into my pension? I can help with the issues members should consider when thinking about these questions, but I’m not qualified to give advice. So more often than not, I suggest the member speaks to an IFA.

Now the vast majority of members I speak with have never approached an IFA, even though it has been on their to do list for a long time. Why? “I wouldn’t know where to start with choosing an IFA”, “the prices I was quoted were really inconsistent”, “I’m not sure if they have a strong knowledge of pensions”.

Employers – help your members out. Select an IFA that your members can approach for help. One that you’ve carried out some due diligence on and are happy that they are pensions savvy and fairly priced. You could consider paying for this advice or just ensure you facilitate the pensions advice allowance. You could also give members short time off to attend their advice sessions. Your members will thank you, as will their future retired selves, and you can rest assured that you have helped your members make the best decisions about their retirement.

I read an article recently which stated that pension experts have called for legislation to allow employers to recommend and pay for advisers to help employees make decisions around pensions. It might be worth jumping on the bandwagon sooner rather than later.

Oh and my dad now? Loving life – on the golf course most days, and busy looking after his six grandchildren (not all mine…!). All this while being very comfortable with the excellent retirement decisions he made on the back of the advice from his IFA.

If you’re interested in selecting an IFA for your members, we can help with the due diligence. Speak to your usual Hymans Robertson consultant or speak to Greer at greer.flanagan@hymans.co.uk.

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