Is pension advice only for the wealthy?

14 October Reading Time: 8 minutes

Receiving pension advice is an incredibly valuable tool for all individuals looking to get their financial plans in check and secure a comfortable income for when they decide to retire. 

However, several misconceptions about advice often discourage people from seeking it. A common one is that pension advice is for those in wealthier income brackets. There are several reasons that could lead savers to thinking this way. 

Certainly, financial advice has not always been easily accessible. Some may assume that there are certain savings or income thresholds that may limit one’s access to a financial adviser. Others may not consider themselves wealthy enough to even warrant advice.    

Regardless, this misconception is hurtful, as not only does advice benefit everyone, but it can dissuade savers who are genuinely concerned about their financial future from seeking it.

As such, it’s vital that all pension planners understand the value of advice regardless of their income. 

The value of advice

Simply put, the purpose of pension advice is not to make the wealthy wealthier. It is to help people put themselves in a better situation financially, whether that’s making excess cash work harder by finding riskier but higher reward investments or improving someone’s financial stability by helping them find ways to reduce debt. 

When it comes to pensions, advice is used to help retirement planners find the best pension plan suited to different individuals’ circumstances.  

Indeed, planning for retirement, as with all financial planning, can be a complicated process to work through for people of all backgrounds. 

For starters, choosing a financial product that is best suited to a person’s retirement strategy requires detailed knowledge of the various products available. This not only includes the benefits and downsides of each one but whether they are suited to a planner’s goals, needs, risk appetite, and their current financial situation.  

Meanwhile, a wider economic perspective is needed to gauge whether a certain pension option is right for an individual under the current market conditions. For example, in our blog last week, we looked at how annuity rates, set at a 12-year high, might be perfect for some planners, but not for others. A qualified financial adviser will use their understanding of both pension products and services and market trends to provide advice that matches a client’s financial situation and circumstances.

Everyone deserves financial advice

It could be argued that in times of economic uncertainty, financial advice can play a more important role in helping people stay on top of their finances.

A recent My Pension Expert survey found that 37% of over-40s in work believed the cost-of-living crisis had made retirement impossible for the foreseeable future. Despite this, a concerningly low number had sought advice, with only 13% stating they had spoken to an independent financial adviser about their pension strategy. 

Clearly, this misconception, along with others, runs deep – to the point where people are still not seeking advice despite feeling anxious about their financial future. Therefore, it’s key that the sector works to ensure savers understand the value of advice and that it can be specific to their own financial situation. 

For example, at My Pension Expert, our team of advisers conduct a thorough audit of a client’s financial circumstances, their risk appetite, and their desired retirement outcome. From this, we develop a tailored retirement outcome to suit their needs and goals. 

It must be acknowledged that advisers do charge fees for their service. However, they may not be as expensive as one may think. At My Pension Expert, we only charge our clients an adviser fee if they decide to follow their adviser’s recommendations – which our team explains at the very beginning of a client’s retirement journey. In doing so, we ensure that people of all wealth brackets are able to access advice, without worrying about surprise fees.

Every strategy will involve different factors, from higher-risk investments to flexible drawdowns or a fixed-term annuity. In taking on this tailored advice, an individual is able to make their money work in the most efficient way to achieve their particular goals, all without hindering their existing financial circumstances. 

Receiving pension advice is an incredibly valuable tool for all individuals looking to get their financial plans in check and secure a comfortable income for when they decide to retire. 

However, several misconceptions about advice often discourage people from seeking it. A common one is that pension advice is for those in wealthier income brackets. There are several reasons that could lead savers to thinking this way. 

Certainly, financial advice has not always been easily accessible. Some may assume that there are certain savings or income thresholds that may limit one’s access to a financial adviser. Others may not consider themselves wealthy enough to even warrant advice.    

Regardless, this misconception is hurtful, as not only does advice benefit everyone, but it can dissuade savers who are genuinely concerned about their financial future from seeking it.

As such, it’s vital that all pension planners understand the value of advice regardless of their income. 

The value of advice

Simply put, the purpose of pension advice is not to make the wealthy wealthier. It is to help people put themselves in a better situation financially, whether that’s making excess cash work harder by finding riskier but higher reward investments or improving someone’s financial stability by helping them find ways to reduce debt. 

When it comes to pensions, advice is used to help retirement planners find the best pension plan suited to different individuals’ circumstances.  

Indeed, planning for retirement, as with all financial planning, can be a complicated process to work through for people of all backgrounds. 

For starters, choosing a financial product that is best suited to a person’s retirement strategy requires detailed knowledge of the various products available. This not only includes the benefits and downsides of each one but whether they are suited to a planner’s goals, needs, risk appetite, and their current financial situation.  

Meanwhile, a wider economic perspective is needed to gauge whether a certain pension option is right for an individual under the current market conditions. For example, in our blog last week, we looked at how annuity rates, set at a 12-year high, might be perfect for some planners, but not for others. A qualified financial adviser will use their understanding of both pension products and services and market trends to provide advice that matches a client’s financial situation and circumstances.

Everyone deserves financial advice

It could be argued that in times of economic uncertainty, financial advice can play a more important role in helping people stay on top of their finances.

A recent My Pension Expert survey found that 37% of over-40s in work believed the cost-of-living crisis had made retirement impossible for the foreseeable future. Despite this, a concerningly low number had sought advice, with only 13% stating they had spoken to an independent financial adviser about their pension strategy. 

Clearly, this misconception, along with others, runs deep – to the point where people are still not seeking advice despite feeling anxious about their financial future. Therefore, it’s key that the sector works to ensure savers understand the value of advice and that it can be specific to their own financial situation. 

For example, at My Pension Expert, our team of advisers conduct a thorough audit of a client’s financial circumstances, their risk appetite, and their desired retirement outcome. From this, we develop a tailored retirement outcome to suit their needs and goals. 

It must be acknowledged that advisers do charge fees for their service. However, they may not be as expensive as one may think. At My Pension Expert, we only charge our clients an adviser fee if they decide to follow their adviser’s recommendations – which our team explains at the very beginning of a client’s retirement journey. In doing so, we ensure that people of all wealth brackets are able to access advice, without worrying about surprise fees.

Every strategy will involve different factors, from higher-risk investments to flexible drawdowns or a fixed-term annuity. In taking on this tailored advice, an individual is able to make their money work in the most efficient way to achieve their particular goals, all without hindering their existing financial circumstances. 


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