Know your choices at retirement
Understand annuities, drawdown, and lump sums - and how to combine them for a suitable retirement income plan.
1 Nov 2024 | 7 min read
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Why get financial advice at retirement
The evidence for taking advice, the difference between advice and guidance, and what going direct could cost you.
The value of advice
Research from the ILC-UK and Royal London has found that people who take financial advice can be 17-39% better off in retirement than those who don't - and around 9 in 10 people who take advice report being satisfied with it.
Retirement decisions share a lot in common with medical ones: they're complex, often irreversible, and highly personal. Just as you'd see a specialist for a serious health decision, a regulated adviser brings the qualifications and market knowledge to help you make a suitable one about your pension.
Advised retirees can be 17-39% better off, according to ILC-UK/Royal London research
Around 9 in 10 people who take advice are satisfied with it
Retirement decisions are complex and often irreversible - much like medical ones
Advice vs guidance
These terms are often used interchangeably, but they are legally distinct. Guidance sets out your options in general terms - it doesn't tell you what to do. Advice is a personal recommendation, tailored to your circumstances, from someone regulated and accountable for that recommendation being suitable.
Free guidance services, such as Pension Wise, are a good starting point for understanding your options. Regulated advice goes further, taking responsibility for recommending what's actually right for you.
Guidance explains your options in general terms - it doesn't recommend a course of action
Advice is a personal, regulated recommendation tailored to your circumstances
Advisers are accountable for the suitability of the recommendation they give
Advice can be face-to-face or remote
Advice doesn't have to mean an office visit. Video and phone consultations offer real advantages: no travel, more flexible scheduling, and access to specialist advisers regardless of where you live.
Genuine face-to-face benefits - personal connection, reading body language, immediate clarification - remain available if you'd prefer it. Many clients find they get the same quality of advice either way, and simply choose whichever fits their life better.
Video and phone calls remove travel time and widen scheduling options
Access to specialist advisers isn't limited by where you live
Face-to-face meetings remain available if you'd prefer them
What going direct could cost you
Buying directly from a provider can seem simpler, but it means missing out on a whole-of-market comparison, a check for valuable guarantees like Guaranteed Annuity Rates (GAR), and someone handling the paperwork on your behalf.
An FCA-regulated adviser has a duty to recommend what's suitable for you, not just what a single provider offers - which is one reason advised customers can end up with a meaningfully higher retirement income.
Whole-of-market access, rather than a single provider's rates
A check for valuable guarantees like Guaranteed Annuity Rates before you transfer anything
An unbiased, FCA-regulated recommendation with a duty of care to you
Other Guides
More resources to help you plan your retirement
What is an annuity, and do I need one?
How annuities work, how the guarantee is backed, and how to decide if one is right for your retirement income.
20 Nov 2024 | 5 min read
Annuity options: configuring your income
Death benefits, guarantee periods, payment frequency and escalation - the choices that shape your annuity income.
22 Nov 2024 | 6 min read
FAQs
Common questions about getting financial advice