Financial Advice v Financial Guidance.
Much has been made of the Chancellor’s Budget speech in March 2014 where he announced £25m would be made available for people to seek free advice on defined contribution pension schemes (investment linked pensions).
This instigated a mass outcry from the financial advisory industry seeking more information and how it would work. The reality is that this money is going to be made available to groups such as the Money Advice Service (MAS), already funded by the financial services industry by levy, and also groups such as the Citizens Advice Bureau (CAB). It will not be made available to qualified financial advisers to enable a scheme similar to that used in the legal profession (formerly legal aid).
Is it really financial advice? A resounding NO!
This is not advice!
We suggest you always seek the help of a professional financial adviser such as ourselves.
The issue of financial advice v financial guidance is a tough one and we suggest the regulator will need to re-visit what it classifies as advice and guidance to ensure that you, the consumer, understands exactly what service you are receiving and what your rights are.
Your decisions at retirement are, behind having a family and buying a home, probably the most important financial decision of your life. These decisions on pensions also affect the rest of your whole life. If you get them wrong then your financial future i.e. everything that you do: Food, Drink, Holidays, Cars, Leisure, Bills and more are affected.
Do you really trust an unqualified person with limited financial services experience and with no liability to guide you on the final and biggest investment decision of your life.
Contact our team for retirement planning help and advice.