Choosing a Pension Adviser

A pension advisor is a financial adviser who specialises in helping people with their retirement savings. A pension adviser can help you decide which investments are best suited to your needs and objectives. They can also explain your tax situation and suggest ways to maximise the value of your retirement fund.

When choosing a pension adviser, look for someone who genuinely seems interested in your individual circumstances and goals, and whom you feel comfortable building a long-term relationship with. A good pension advisor will be able to translate your unique goals into specific plans, and will be able to clearly outline any risks associated with your plan. They will then advise you on how to balance your portfolio with an investment strategy based on your risk tolerance.

The Importance of a Pension Advisor: Securing Your Retirement Future

For example, a person with a low risk tolerance may prefer to invest in cash or fixed-income assets (such as bonds). This is compared to a high risk tolerance person who might choose a balanced portfolio, which might consist of 45% stocks and 55% fixed-income assets.

Some advisors charge a commission, while others are fee-only. Fee-only advisors typically set their fees based on the amount of time they spend working with clients.

If you are considering transferring a defined benefit pension worth over PS30,000, it is a legal requirement to seek financial advice before proceeding. A pension advisor will be able to help you decide whether to cash in your pension or not, and can also help you consider other income sources during retirement, such as Social Security benefits, other investment earnings, and annuities.