Selecting a pension provider because you recognise the brand name may not secure you the best financial strategy for your future retirement.
It’s easy to choose familiar brand names because we recognise and feel comfortable with them. We do this all the time, from food shopping to choosing an internet provider.
However, there’s a good reason why comparison websites and guides have sprung up for every industry in recent years. Choosing a brand name because it’s familiar won’t always give you the best option for your personal circumstances.
In an age where we’re always encouraged to ‘shop around’ to find the best deals, the same applies to finding a pension income provider, too. Here’s why – and how – you should make sure you’re getting the best pension deal by looking beyond the household brand name providers.
Clients often ask us about the level of financial protection their pension plan will receive. It’s understandable: there have been several financial services household names collapse in recent years, so you want to make sure your money is safe.
In the UK, you’ll receive the same level of protection from any scheme registered with the Financial Conduct Authority. A regulated provider will offer protection under the Financial Services Compensation Scheme, no matter if they’re a household name or a small local company.
This means you should remain confident when you’re shopping around with a pension provider that your money will have the same level of protection, as long as the company is FCA-registered. You can access the best plans suited to your personal circumstances without needing to stick to recognisable brand names.
Just as with other financial products, or even household services like electricity suppliers, the best rates come to those who do their research. The rates between providers can vary wildly and providers are also often willing to price match or even beat competitors if you have found a better price elsewhere.
This means that you can find a provider that ticks all of the boxes to suit your personal needs – then ask them to match the better rates you’ve seen offered by another provider in order to secure your business.
Sticking with a household brand because you recognise the name could mean you’re missing out on the best options for your personal circumstances. You risk being worse off financially if you don’t take advantage of shopping around to find the best rates, including providers that aren’t household names.
Independent financial advisers help to review all of your options. They’ll know the best providers to look at based upon your personal circumstances – and that includes lesser-known brands you may not have heard of before.
Independent financial advice has become especially important since the Pension Freedoms Act in 2015, which broadened pension income options available to customers. Shopping around for the best pension provider means you can access better deals – but an independent adviser will be able to do the legwork for you.
Review your options with our independent financial advisers to make sure you’re getting the best pension plan for your needs. Contact our team today on 0800 689 9335 to find out if our team can help you find a better pension provider to boost your retirement income.