Sort your pension planning out before Brexit!

Brexit - Are you getting the right financial advice?

It’s safe to say that no one really knows how the Brexit saga is going to pan out - least of all the UK government! And with this in mind, it makes complete sense to review your financial arrangements, especially in terms of moving UK savings and pensions.

Pensions are a particularly complex subject where reliable advice is essential. From understanding state pension entitlement, to reviewing all existing personal and /or employer schemes, it may be possible to increase the value, flexibility and security of retirement finances, but each case needs to be considered on an individual basis.

Many financial advisors suggest unlocking pension cash by arranging transfers to a Qualifying Recognised Overseas Pension Scheme (QROPS).

Whilst there may be merit in a QROPS transfer, our SF pensions expert Brian Furzer has become alarmed by recent cases of clients being “offered inappropriate advice without proper procedure” by firms which “are not regulated in France and, therefore, not accountable for any loss on the part of the client, either now or in the future for French residents”. He’s also noticed firms charging a high level of fees over and above the commission received from the investment provider with the funds they recommend generating extra commissions, and perhaps worst of all, many of these funds have eventually been closed with total, or near total, loss to investors!

Brian explains, “In two cases where I was consulted, the final salary schemes were public sector and under practically no circumstances would I recommend a transfer out due to the solid guarantees in place. The advice given by the ‘other’ advisers was to transfer; fortunately, both clients had a rethink and left their pensions where they were”.

Costs associated with a pension transfer should always be fully explained; without proper planning and advice there can be a dramatic reduction in the value of the overall pension pot, with obvious consequences for your financial security in retirement.

Even for the financially savvy it is worth seeking professional advice. It goes without saying that you should only deal with an independent, appropriately authorised adviser, and ideally, living and working locally.

The Spectrum IFA Group is not tied to any financial institutions and do not charge for reports or recommendations. Details of their Client Charter can be found here - www.spectrum-ifa.com and registration details here - www.orias.fr.

Brian comes highly recommended by SF readers who have been using his services for many years; to arrange a free consultation today.