The changes in pension legislation this year have meant more freedom for people to review and re-invest their pensions, giving people options when planning for the future.
However, Ian Batterbee, senior advisor at Better Financial Planning in Bishiop’s Waltham, says he is astonished at the number of people who have been given inappropriate advice.
He said: ‘I want people to be aware of the pitfalls of not seeking professional help.
‘It is vitally important that people carry out some research into the firm providing them with financial advice on their final salary pensions to ensure they have the correct knowledge and qualifications to do so.’
Mr Batterbee suggests going to at least three different firms that have the correct qualifications and are authorised with the Financial Conduct Authority (FCA) to give advice on final salary pension transfers.
He warns that many advisers are not authorised to advise on final salary pension transfers and simply pass the enquiry on, taking a split of the fee paid by the client. This can lead to overcharging. He also warned people to check each firm’s charge.